Mitsubishi Electric (6503) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue reached ¥1,312.8 billion, a record high, with operating profit at ¥111.9 billion, up ¥53.3 billion year-over-year, and net profit attributable to stockholders at ¥90.9 billion.

• Growth was driven by strong performance in Infrastructure, Life, and Factory Automation segments, with a notable one-time gain from a subsidiary share transfer.

• Overseas revenue accounted for 54.7% of total, with Japan and North America showing notable increases.

• FY26 full-year forecast remains at ¥5,400.0 billion revenue and ¥430.0 billion operating profit, unchanged from previous guidance.

• Management focuses on resilience through price improvements, cost reductions, and indirect cost optimization.

Financial highlights

• Revenue increased 2% year-over-year to ¥1,312.8 billion, with operating profit margin improving to 8.5% from 4.6% year-over-year.

• Net profit attributable to stockholders rose to ¥90.9 billion, up ¥41.7 billion year-over-year, with net profit margin increasing to 6.9% from 3.8%.

• Free cash flow increased to ¥174.1 billion, up ¥53.9 billion year-over-year.

• Cost of sales ratio improved by 2.6 points year-over-year to 68.4%.

• Cash and cash equivalents at quarter-end were ¥821.8 billion, up from ¥757.3 billion at the start of the period.

Outlook and guidance

• Full-year FY26 revenue forecast is ¥5,400.0 billion, with operating profit at ¥430.0 billion, and net profit projected at ¥340.0 billion, unchanged from previous guidance.

• Automotive equipment business expected to see a decline in revenue and profit, while Factory Automation and air-conditioning/home products are projected to grow.

• Tariff impacts expected to be ¥30.0 billion after mitigation measures.

• Research and development expenditures are forecast to increase 5% to ¥240.0 billion for the full year.

• Guidance supported by AI-related demand and a weaker-than-expected yen in Q1.