Mitsubishi Electric (6503) Q4 2026 earnings summary

Executive summary

• FY26 revenue reached ¥5,894.7 billion, up 7% year-over-year, with operating profit (excluding Next-Stage) at ¥538.4 billion and net profit attributable to stockholders at ¥407.7 billion (+26% YoY), driven by Infrastructure, Life, factory automation, price improvements, and a weaker yen.

• The business environment featured gradual recovery in Japan, strong U.S. demand (especially AI/data centers), and continued slowdown in China due to real estate and weak domestic demand.

• Profit increased across all sub-segments except air conditioning systems & home products; free cash flow was ¥231.5 billion, with strong cash flows from operating activities.

• FY27 forecast projects revenue of ¥6,200.0 billion (+5% YoY) and adjusted operating profit of ¥590.0 billion (+18% YoY), expecting further record highs due to expansion in defense, factory automation, and Life segments.

Financial highlights

• FY26 operating profit (excluding Next-Stage) rose to ¥538.4 billion (+37% YoY); net profit attributable to stockholders was ¥407.7 billion (+26% YoY).

• Operating profit margin improved to 9.1% (from 7.1% YoY); profit before income taxes increased to ¥526.0 billion (+20% YoY).

• Free cash flow for FY26 was ¥231.5 billion, with cash flows from operating activities at ¥575.9 billion and cash and cash equivalents at period end of ¥731.6 billion.

• Total assets increased by ¥981.8 billion to ¥7,357.5 billion; D/E ratio improved to 0.08.

• Basic and diluted EPS rose to ¥198.31 from ¥155.70 year-over-year.

Outlook and guidance

• FY27 revenue expected at ¥6,200.0 billion (+5% YoY), adjusted operating profit at ¥590.0 billion (+18% YoY), and net profit at ¥475.0 billion (+17% YoY).

• Forecast reflects anticipated growth in defense, factory automation, and Life segments, with continued investment for future growth.

• Impact of raw material price hikes and logistics costs, especially due to Middle East situation, factored into guidance.

• Management expects moderate global growth amid geopolitical and resource price uncertainties, with continued focus on business model transformation and ROIC-based management.