Mitsubishi Heavy Industries (7011) investor relations material

Executive summary

• Order intake reached ¥2,022.4 billion, with strong growth in Energy Systems and Industrial Solutions, pushing the order backlog above ¥14 trillion, up over ¥860 billion from the previous fiscal year.

• Revenue rose 16% year-on-year to ¥1,194.2 billion, with business profit up 65% to ¥159.6 billion and net income nearly doubling to ¥134.6 billion, all record Q1 highs.

• Free cash flow was ¥391.5 billion, supported by strong profit generation and proceeds from the Logisnext sale.

• The sale and deconsolidation of Logisnext was completed, impacting asset and cash positions and resulting in a one-time gain.

• Net profit attributable to owners nearly doubled year-over-year, with basic EPS at ¥40.08.

Financial highlights

• Operating cash flow reached ¥284.5 billion, mainly from profit generation and advances in GTCC and other businesses.

• Investing cash flow exceeded ¥100 billion, primarily due to the Logisnext sale.

• Total assets decreased by about ¥120 billion to ¥8,151.3 billion, mainly due to the removal of assets held for sale.

• Net interest-bearing debt was negative ¥1,164.2 trillion, reflecting a strong cash position.

• EBITDA reached ¥190.3 billion (+52% YoY), with an EBITDA margin of 15.9%.

Outlook and guidance

• FY2026 revenue forecast maintained at ¥5,400 billion (+8.6% YoY), with business profit forecast at ¥540 billion (+24.9% YoY).

• Net income forecast at ¥380 billion (+14.4% YoY); annual dividend forecast raised to ¥29 per share.

• Free cash flow forecast increased to ¥600 billion.

• FX rate assumption set at ¥150 to the dollar, with $3.2 billion FX exposure on business profit.

• Management sees a strong possibility of exceeding full-year forecasts, with updates at the half-year mark.