Mitsubishi Heavy Industries (7011) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue rose 7.4% year-over-year to ¥1,193.7 billion, with business profit up 25% to ¥104.2 billion and net income up 10% to ¥68.2 billion, driven by growth in Energy Systems, Plants & Infrastructure Systems, and Aircraft, Defense & Space.

• Order intake declined 4.3% year-over-year to ¥1,768.6 billion, mainly due to a high prior-year base in Defense & Space, but order backlog increased by about ¥536.6 billion to a record ¥10,772.9 billion.

• Free cash flow improved to ¥64.3 billion, with operating cash flow at ¥89.7 billion, driven by strong advances received.

Financial highlights

• EBITDA increased 17% year-over-year to ¥143.2 billion, with EBITDA margin up 1.0 point to 12.0%.

• Net interest-bearing debt turned negative at -¥21.4 billion, improving by ¥479.4 billion year-over-year.

• Total assets rose to ¥6,752 billion, up ¥93.1 billion from FY2024, with inventories and advances increasing.

• Cash and cash equivalents at period end were ¥671.9 billion, up from ¥657.8 billion at the start of the year.

• Gross profit increased to ¥266.2 billion from ¥240.5 billion year-over-year.

Segment performance

• Energy Systems: Revenue grew to ¥421.5 billion, segment profit rose to ¥56.4 billion, driven by strong GTCC and stable nuclear power.

• Plants & Infrastructure Systems: Revenue increased to ¥195.0 billion, segment profit to ¥18.6 billion, with strong engineering and machinery systems.

• Logistics, Thermal & Drive Systems: Revenue declined to ¥297.9 billion, segment profit fell to ¥10.9 billion, with turbochargers improving despite lower units.

• Aircraft, Defense & Space: Revenue surged to ¥260.4 billion, segment profit climbed to ¥28.8 billion, with higher 787 deliveries and steady defense project execution.