Mitsubishi Electric (6503) investor relations material

Executive summary

• Q1 revenue reached ¥1,497.1 billion, up 14% year-over-year, with record highs in revenue and adjusted operating profit of ¥144.3 billion, driven by strong growth in Industry & Mobility and Life segments, price improvements, and a weaker yen.

• Net profit attributable to stockholders increased 21% year-over-year to ¥109.8 billion, the highest for Q1.

• Growth was supported by increased business scale in factory automation, defense & space, and air conditioning systems.

• The impact of the 2026 Kumamoto earthquake on operations was limited, with production resuming after inspections.

• Comprehensive income attributable to stockholders surged 59% to ¥149.9 billion.

Financial highlights

• Revenue increased 14% year-over-year to ¥1,497.1 billion; adjusted operating profit rose 54% to ¥144.3 billion.

• Net profit attributable to stockholders was ¥109.8 billion, up 21% year-over-year.

• Gross margin improved by 1.8 points to 33.4% as cost of sales ratio decreased from 68.4% to 66.6%.

• Free cash flow for Q1 was ¥301.5 billion, up ¥127.4 billion year-over-year.

• Profit before income taxes increased 27% year-over-year to ¥157.1 billion.

Outlook and guidance

• Full-year FY2027 revenue forecast raised to ¥6,270.0 billion (+6.4% YoY), with adjusted operating profit of ¥620.0 billion (+23.7%).

• Net profit forecast for FY2027 is ¥495.0 billion, up ¥20.0 billion from prior guidance.

• Dividend forecast raised to ¥60 per share for FY2027.

• Upward revision reflects higher demand for AI and semiconductors, especially in FA systems, and a weaker yen.

• FX assumptions for Q2 onwards: JPY 150/USD, JPY 175/EUR, JPY 21.5/CNY.