Mitsubishi Heavy Industries (7011) Q3 2025 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in order intake and profit for the first three quarters of FY2024, driven by strong demand in Energy Systems, Plants & Infrastructure Systems, and Defense & Space, with significant contributions from GTCC, Aero Engines, and Metals Machinery.

• Revenue increased 8.8% year-over-year to ¥3,547.7 billion, with all segments contributing, especially Defense & Space.

• Business profit surged 38.2% year-over-year to ¥264.7 billion, driven by revenue growth, margin improvements, yen depreciation, and rebound from prior one-time expenses.

• Net income climbed 24.7% year-over-year to ¥172.1 billion, reflecting higher business profit.

• Full-year guidance for all major financial indicators revised upward based on strong year-to-date performance.

Financial highlights

• Order intake rose 10.5% year-over-year to ¥4,968.9 billion; forecast raised to ¥6.4 trillion due to robust demand.

• EBITDA reached ¥382.0 billion, up 28.9% year-over-year, with margin improving to 10.8%.

• Free cash flow improved by ¥269.5 billion year-over-year to -¥143.7 billion; forecast improved to zero.

• Total assets rose by JPY 568.9 billion to JPY 6,825.2 billion, with JPY 90 billion attributed to yen depreciation.

• Interest-bearing debt stood at ¥1,002.3 billion, down ¥179.1 billion year-over-year; D/E ratio improved to 0.41.

Outlook and guidance

• FY2024 guidance raised: order intake ¥6.4 trillion (+¥400 billion), revenue ¥5.0 trillion (+¥100 billion), business profit ¥380 billion (+¥30 billion), net income ¥240 billion (+¥10 billion), EBITDA ¥530 billion (+¥30 billion), FCF to break even.

• Segment forecasts for order intake, revenue, and profit increased, particularly in Energy Systems, Plants & Infrastructure, and Aircraft, Defense & Space.

• Dividend guidance maintained at ¥22 per share, adjusted for stock split.