Mitsubishi Electric (6503) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue reached ¥1,497.1 billion, up 14% year-on-year, with all segments contributing to growth and adjusted operating profit rising 54% to ¥144.3 billion, both record highs for Q1.

• Net profit attributable to stockholders increased 21% year-on-year to ¥109.8 billion, the highest for Q1.

• Growth was driven by strong demand in factory automation, semiconductors, air conditioning, and favorable exchange rates.

• The impact of the 2026 Kumamoto earthquake on operations was limited, with production sites resuming activity.

• Comprehensive income attributable to stockholders surged 59% to ¥149.9 billion.

Financial highlights

• Revenue up 14% year-on-year to ¥1,497.1 billion; adjusted operating profit up 54% to ¥144.3 billion; net profit up 21% to ¥109.8 billion.

• Gross margin improved by 1.8 points to 33.4% as cost of sales ratio decreased.

• Free cash flow was ¥301.5 billion, up ¥127.4 billion year-on-year.

• Total equity increased by ¥88.6 billion; equity ratio rose to 63.1% from 60.9% YoY.

• Basic earnings per share increased to ¥53.66 from ¥43.89 year-on-year.

Outlook and guidance

• Full-year FY2027 revenue forecast raised to ¥6,270.0 billion (+6.4% YoY); adjusted operating profit forecast increased to ¥620.0 billion (+23.7%).

• Net profit forecast for FY2027 is ¥495.0 billion, with EPS of ¥241.87.

• Dividend forecast raised to ¥60 per share for FY2027.

• Upward revision reflects strong demand for AI, semiconductors, and continued yen weakness.

• FX assumptions for Q2 onward: JPY 150/USD, JPY 175/EUR, JPY 21.5/CNY.