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 Defense & Space, 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 profit from business activities up 2.1% to ¥171.6 billion and net income up 7% to ¥114.9 billion.

• Total comprehensive income surged to ¥179.3 billion from ¥56.1 billion in the prior year period.

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

Financial highlights

• EBITDA (excluding ML) reached ¥229.6 billion, up ¥5.5 billion year-over-year, with an EBITDA margin of 10.9%.

• Free cash flow (including ML) was ¥151.0 billion, a significant improvement of ¥236.8 billion year-over-year.

• 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.

• Order backlog increased by ¥1.2 trillion from last year-end.

Outlook and guidance

• FY2025 order intake forecast revised up to ¥6,100.0 billion, revenue to ¥4,800.0 billion, and business profit to ¥390.0 billion.

• Net income and dividend forecasts remain unchanged at ¥230.0 billion and ¥24 per share, respectively.

• Free cash flow forecast remains at zero.

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