Mitsubishi Heavy Industries (7011) Q2 2026 earnings summary

Executive summary

• Order intake for 1H FY2025 rose 9% year-over-year to ¥3,314.7 billion, driven by strong Energy Systems and North American market capture, while other segments saw declines due to a high base effect from prior large projects.

• Revenue for the first six months of FY2025 rose 7.3% year-over-year to ¥2,113.7 billion, with notable growth in GTCC and Defense & Space.

• Net income for Q2 reached ¥114.9 billion, up 7.3% year-over-year, marking a record for the second quarter.

• Management is focused on a virtuous cycle of high profitability and growth investments, emphasizing group-wide optimization and rapid resource deployment.

• The company is advancing initiatives for innovative total optimization and responding swiftly to changes in the business environment.

Financial highlights

• EBITDA (excluding ML) reached ¥229.6 billion, with an EBITDA margin of 10.9%.

• Free cash flow was positive at ¥151 billion, a significant improvement year-over-year, supported by increased order intake in GTCC.

• Net interest-bearing debt (excluding ML) was -¥108.3 billion, a reduction of ¥521.4 billion year-over-year.

• Total assets exceeded ¥7 trillion as of September 30, 2025, with total equity at ¥2,611.9 billion.

• Contract liabilities (advanced payments) increased by ¥260 billion from last year-end.

Outlook and guidance

• FY2025 order intake forecast revised up to ¥6,100.0 billion; revenue guidance raised to ¥4,800.0 billion.

• Business profit outlook remains at ¥390 billion; profit attributable to owners of the parent forecast at ¥230 billion.

• Annual dividend forecast raised to ¥24 per share.

• Energy business expected to increase by ¥1 trillion over initial guidance.

• Exchange rate assumption is JPY 145 per USD, with $1.6 billion sensitivity.