Mitsubishi Electric (6503) Q4 2026 earnings summary

Executive summary

• Revenue for fiscal year 2026 rose by JPY 373 billion year-on-year to JPY 5,894.7 billion, reaching a record high, driven by volume expansion in Infrastructure, Life, and Factory Automation Systems, and price improvements in Industry & Mobility and Life.

• Operating profit (excluding Next-Stage Support Program impact) increased by JPY 146.6 billion year-on-year to JPY 538.4 billion, with the operating profit margin reaching a record 9.1%.

• Net profit attributable to stockholders rose 26% year-on-year to JPY 407.7 billion, supported by a weaker yen and robust demand in key segments.

• Free cash flow was an inflow of JPY 231.5 billion, supported by growth investments and asset sales.

• All sub-segments except air conditioning and home appliances outperformed the previous year.

Financial highlights

• Revenue: JPY 5,894.7 billion, up JPY 373 billion year-on-year.

• Operating profit (real basis, excluding Next-Stage): JPY 538.4 billion, up JPY 146.6 billion year-on-year; net profit attributable to stockholders: JPY 407.7 billion, up 26%.

• Operating profit margin improved to 9.1% (from 7.1% YoY); net profit margin rose to 6.9%.

• Profit before income tax reached JPY 526.0 billion, up 20% year-on-year.

• Operating cash flow: JPY 575.9 billion; free cash flow: JPY 231.5 billion; total assets increased by JPY 981.8 billion to JPY 7,357.5 billion.

Outlook and guidance

• FY 2027 revenue forecast: JPY 6,200.0 billion (+5% YoY); adjusted operating profit: JPY 590.0 billion (+18% YoY); net profit: JPY 475.0 billion (+17% YoY).

• Adjusted operating profit indicator introduced to better reflect actual performance.

• Revenue growth expected from Defense systems, Factory Automation Systems, and Life segments.

• Operating profit expected to rise as sales volume, price improvements, and Next-Stage initiatives offset rising material costs.

• Public Utility Systems profit to decline despite revenue growth due to absence of prior year one-off revenue.