Mitsubishi Heavy Industries (7011) Q2 2027 earnings summary

Executive summary

• 1H FY2026 order intake rose 9% YoY to ¥3,612.5bn; revenue increased 19.4% to ¥2,523,269m, profit from business activities rose 45.3% to ¥249,304m, and parent-attributable profit grew 76.9% to ¥203,291m.

• Backlog reached ¥14,225.6bn, up ¥988.0bn from FY2025 year-end; first-half order intake, revenue, business profit and net income each set records.

Financial highlights

• EBITDA was ¥313.4bn, up ¥83.7bn YoY, with a 12.4% margin, up 1.6 points; business profit margin was 9.9%, up 1.8 points.

• Free cash flow was ¥468.3bn: operating cash flow ¥394.5bn and investing cash flow ¥73.8bn, the latter supported mainly by the Logisnext divestment.

• Net income growth reflected higher business profit, foreign-exchange gains and finance income.

Outlook and guidance

• FY2026 forecasts were raised to order intake ¥8,000bn, revenue ¥6,000bn, business profit ¥600bn, net income ¥440bn and EBITDA ¥720bn; FCF guidance rose to ¥800bn and ROE is forecast at 14%.

• Business profit guidance includes ¥90bn of one-time expenses, including ¥70bn for IGCC and a ¥20bn risk buffer; forecast growth drivers include revenue growth and margin improvements.

• Forecast assumptions are US$1=¥150 and €1=¥180; annual dividend guidance remains ¥29 per share.