Mitsubishi Heavy Industries (7011) Q2 2025 earnings summary

Executive summary

• Order intake, revenue, and business profit all reached record highs in the first half of FY2024, with order intake up 8% year-over-year to ¥3,383.5 billion and revenue up 11.1% to ¥2,298.1 billion.

• Business profit surged 87% year-over-year to ¥188.4 billion, supported by revenue growth, improved product mix, and yen depreciation.

• Net income attributable to owners of the parent increased 16.5% year-over-year to ¥107.1 billion, despite foreign exchange losses.

• Total assets rose to ¥6,477.1 billion as of September 30, 2024, up from the previous fiscal year-end.

• Order intake forecast for the year raised from ¥5.8 trillion to ¥6 trillion due to strong progress.

Financial highlights

• EBITDA reached ¥266.2 billion, up ¥97.3 billion year-over-year, with an EBITDA margin of 11.6%.

• Free cash flow improved to -¥85.7 billion from -¥181.2 billion year-over-year, aided by higher profits and smaller working capital increases.

• Net cash used in operating activities improved significantly to ¥8.9 billion outflow from ¥181.2 billion outflow year-over-year.

• Interest-bearing debt increased to ¥948.8 billion, while net interest-bearing debt fell to ¥413.0 billion.

• Equity ratio improved to 34.9%, with equity attributable to owners at ¥2,258.9 billion.

Outlook and guidance

• FY2024 order intake forecast raised to ¥6,000.0 billion, with Energy Systems and Others driving the increase.

• Business profit guidance maintained at ¥350.0 billion; Energy Systems and Plants & Infrastructure Systems forecasts raised, Logistics, Thermal & Drive Systems lowered.

• Revenue, net income, free cash flow, and dividend guidance unchanged; revenue forecast at ¥4,900.0 billion, net income at ¥230.0 billion, dividend at ¥22 per share.

• Despite uncertainties from geopolitical risks, commodity prices, and FX, the company expects to achieve its FY2024 plan.

• Demand remains strong in gas turbines, nuclear power, defense, metals machinery, and aero engines.