Mitsubishi Heavy Industries (7011) Q3 2026 earnings summary

Executive summary

• Order intake reached ¥5,029.1 billion, up 13% year-over-year, marking a record cumulative high through Q3, led by strong growth in Energy Systems, while Aircraft, Defense & Space saw a decline due to a high base effect but remained at high levels.

• Revenue increased 9.2% year-over-year to ¥3,329.3 billion, with net income rising 23% to ¥210.9 billion, both record highs through Q3.

• Business profit grew 26% year-over-year to ¥301.2 billion, driven by GTCC, Metals Machinery, and Defense & Space, despite some project losses and absence of prior asset sale gains.

• Free cash flow was positive at ¥167.6 billion, with operating cash flow contributing ¥256.7 billion.

• Total comprehensive income more than doubled year-over-year, reaching ¥394.48 billion.

Financial highlights

• EBITDA reached ¥393.1 billion, up ¥68.1 billion year-over-year, with an EBITDA margin of 11.8%.

• Order backlog exceeded ¥12 trillion, up approximately ¥2 trillion from the previous fiscal year.

• Total assets rose to ¥7,393 billion, an increase of ¥734.1 billion from the previous fiscal year.

• Equity ratio improved to 35.9% as of December 31, 2025.

• Net interest-bearing debt decreased to -¥112.7 billion.

Outlook and guidance

• FY2025 full-year order intake forecast raised to ¥6,700 billion (+¥600 billion vs. previous), with Energy Systems and Plants & Infrastructure Systems driving the increase.

• Business profit forecast raised to ¥410 billion (+¥20 billion vs. previous); net income forecast increased to ¥260 billion (+¥30 billion vs. previous).

• Free cash flow target revised to ¥200 billion; Q4 exchange rate assumption is 150 yen to the dollar.

• Dividend forecast for FY2025 is ¥24.00 per share.