Mitsubishi Heavy Industries (7011) Q4 2026 earnings summary

Executive summary

• Order intake in FY2025 rose 20% year-on-year to ¥7,653.6 billion, driven by strong GTCC and Energy Systems performance in North America and Asia.

• Revenue increased 14.1% year-over-year to ¥4,974.1 billion, with notable growth in GTCC, nuclear power, defense, and Energy Systems.

• Business profit rose 22% year-over-year to ¥432.2 billion, with all segments showing improvement.

• Net income hit a record ¥332.1 billion, up 35% year-on-year, supported by higher business profit and strong cash flow.

• Free cash flow surged to ¥893.4 billion, mainly due to advances received in GTCC, and interest-bearing debt decreased to ¥515.7 billion.

Financial highlights

• Order backlog exceeded ¥13 trillion, up ¥3 trillion from the previous year.

• EBITDA reached ¥553.7 billion, with an EBITDA margin of 11.1%.

• ROE improved to 12.2%, up 1.5 pts year-over-year.

• Dividend per share increased to ¥25 for FY2025 and is expected to rise to ¥29 for FY2026.

• Equity ratio improved to 37.3% from 35.2% year-over-year.

Outlook and guidance

• FY2026 revenue is forecast at ¥5.4 trillion, with business profit of ¥540.0 billion (+25% YoY) and net income of ¥380.0 billion.

• Order intake is guided at ¥6.8 trillion, with a high backlog expected to be maintained.

• Free cash flow is guided at ¥300.0 billion for FY2026.

• Dividend planned at ¥29/share for FY2026.

• Capital expenditures planned at ¥210.0 billion for FY2026.