Mitsubishi Heavy Industries (7011) Q4 2026 earnings summary

Executive summary

• FY 2025 order intake rose 19.5% to ¥7,653.6bn; revenue increased 14.1% to ¥4,974.1bn.

• Business profit rose 21.8% to ¥432.2bn, with all segments improving; net income increased 35.3% to ¥332.1bn, a record.

• Free cash flow reached a record ¥893.4bn, up ¥550.6bn YoY, mainly supported by GTCC advances.

• FY 2026 business profit is forecast at ¥540.0bn, with revenue of ¥5.4tn and net income of ¥380.0bn.

Financial highlights

• Order backlog stood at ¥13.2tn; EBITDA excluding discontinued operations was ¥553.7bn, up ¥83.7bn, with an 11.1% margin.

• Profit before income taxes rose 34.8% to ¥474.6bn; basic EPS increased 35.3% to ¥98.86.

• Operating cash flow increased to ¥942.6bn from ¥530.4bn; year-end cash and equivalents doubled to ¥1,334.8bn.

• Interest-bearing debt decreased by ¥135.6bn to ¥515.7bn; net interest-bearing debt was -¥819.1bn.

• ROE improved to 12.2% from 10.7%; equity ratio rose to 37.3% from 35.2%.

Outlook and guidance

• FY 2026 forecasts: revenue ¥5.4tn, business profit ¥540.0bn (+25%), and net income ¥380.0bn; order intake is expected at ¥6.8tn (-11.2%) on a high prior-year base.

• FY 2026 dividend planned at ¥29 per share; ROE is projected at 12% and free cash flow at ¥300.0bn.

• Growth in revenue and profit is expected from GTCC, Nuclear Power, and Defense & Space; working capital is expected to rise as backlog is executed.

• FY 2026 guidance excludes impacts from the evolving Middle East situation.