Mitsubishi Heavy Industries (7011) Q4 2025 earnings summary

Executive summary

• Achieved record highs in order intake, revenue, net income, and free cash flow for FY2024, with strong performance across all business segments.

• FY2024 revenue rose 7.9% year-over-year to ¥5,027.2 billion, with business profit up 35.6% to ¥383.2 billion.

• Net income increased 10.6% year-over-year to ¥245.4 billion; comprehensive income fell to ¥203.2 billion from ¥587.9 billion.

• Cash and cash equivalents at year-end increased by ¥226.5 billion to ¥657.8 billion.

• Dividend increased to ¥24/share, up ¥1/share year-over-year after a 10-for-1 stock split.

Financial highlights

• FY2024 order intake: ¥7,071.2 bn (+5.8% YoY); revenue: ¥5,027.1 bn (+7.9% YoY); business profit: ¥383.1 bn (+35.6% YoY); net income: ¥245.4 bn (+10.6% YoY).

• EBITDA reached ¥541.3 bn (+25.1% YoY), with an EBITDA margin of 10.8% (+1.5 pts YoY).

• Free cash flow was ¥342.7 bn (+¥142.6 bn YoY); operating cash flow ¥530.4 bn (+¥199.2 bn YoY).

• Basic EPS was ¥73.04, up from ¥66.07, reflecting a ten-for-one stock split.

• Dividend per share for FY2024 was ¥24.00, with a payout ratio of 31.0%.

Outlook and guidance

• FY2025 revenue forecasted at ¥5.4 tr (+7.4% YoY), business profit at ¥420 bn (+9.6% YoY), and net income at ¥260 bn (+5.9% YoY).

• Order intake expected to decrease to ¥5.9 tr (-16.6% YoY) due to normalization after record highs.

• Free cash flow projected at -¥200 bn, reflecting increased investments and working capital needs.

• Dividend forecast for FY2025 is ¥24.00 per share.

• Revenue and profit growth to be led by GTCC, Aero Engines, and Defense & Space, with strong order backlog supporting future performance.