Mitsubishi Electric (6503) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue reached a record ¥3,125.1bn, up 14% YoY; adjusted operating profit reached a record ¥344.8bn, up 69%.

• Growth reflected broad demand, especially in data centers, semiconductors, defense and air conditioning, alongside profitability and efficiency initiatives.

Financial highlights

• H1 operating profit was ¥358.1bn, profit before income taxes ¥403.6bn and net profit attributable to shareholders ¥297.0bn.

• Q2 revenue rose 15% YoY to ¥1,628.4bn; adjusted operating profit rose 83% to ¥202.6bn, with a 12.4% margin versus 7.8%.

• Q2 operating profit was ¥220.8bn and net profit attributable to shareholders was ¥188.8bn, up 96% and 92% YoY, respectively.

• H1 operating cash flow was ¥535.7bn and free cash flow ¥363.4bn, versus ¥344.7bn and ¥298.0bn a year earlier.

• Q2-end total assets were ¥7,385.6bn; total equity was ¥4,832.4bn and the stockholders’ equity ratio was 63.6%, up from 60.8% at FY2026 year-end.

Outlook and guidance

• FY2027 guidance was raised to revenue of ¥6,550bn and adjusted operating profit of ¥710bn; pretax profit is forecast at ¥695bn and attributable net profit at ¥465bn.

• Revenue and adjusted operating profit forecasts increased by ¥280bn and ¥90bn from July, respectively; forecast adjusted operating margin is 10.8%.

• Higher forecasts reflect stronger sales in factory automation, air conditioning and Infrastructure, plus improved Semiconductor & Device profitability.

• FY2027 basic EPS is forecast at ¥227.20; full-year dividends are forecast at ¥60 per share, including the ¥30 interim dividend.