Mitsubishi Heavy Industries (7011) Q4 2026 earnings summary

Executive summary

• FY2025 saw record highs in order intake, business profit, net income, and free cash flow, driven by strong performance in Energy Systems, especially GTCC and Nuclear Power, and robust growth in Defense & Space.

• Revenue increased 14.1% year-over-year to ¥4,974.1 bn, with notable contributions from Energy Systems, Plants & Infrastructure, and Aircraft, Defense & Space.

• Business profit rose 21.8% year-over-year to ¥432.2 bn, with all segments showing improvement despite some project losses and goodwill impairment.

• Net income grew 35.3% year-over-year to ¥332.1 bn, supported by higher business profit and strong cash flow generation.

• Discontinued operations related to Mitsubishi Logisnext impacted reported figures; profit attributable to owners includes both continuing and discontinued operations.

Financial highlights

• Order intake reached ¥7,653.6 bn, up 20% year-over-year, with a backlog of ¥13.2 tr.

• EBITDA (excluding discontinued operations) was ¥553.7 bn, up ¥83.7 bn year-over-year, with an EBITDA margin of 11.1%.

• Free cash flow surged to ¥893.4 bn, up ¥550.6 bn year-over-year, mainly due to advances received in GTCC.

• Cash and cash equivalents at year-end doubled to ¥1,334.8 bn.

• Dividend increased to ¥25/share, up ¥2/share year-over-year.

Outlook and guidance

• FY2026 revenue forecasted at ¥5.4 tr (+8.6% YoY), business profit at ¥540.0 bn (+25% YoY), and net income at ¥380.0 bn (+14.4% YoY).

• Order intake expected to decrease to ¥6.8 tr (-11.2% YoY) due to high prior-year base.

• Dividend planned at ¥29/share for FY2026.

• Growth in revenue and profit to be driven by GTCC, Nuclear Power, and Defense & Space.

• Capital expenditures planned at ¥210.0 bn for FY2026.