Mitsubishi Heavy Industries raised its forecast for business profit in the year to March 2027 to ¥600bn from ¥540bn, an increase of 11.1%. The company said first-half work on energy and on aerospace, defense and space contracts progressed faster than planned, and that margins improved on gas turbine combined cycle (GTCC) projects. Its revenue forecast rose to ¥6tn from ¥5.4tn. Business profit is the company's IFRS measure: revenue less cost of sales, administrative costs and other expenses, plus equity-method income and other income.
| Item | Previous forecast | Revised forecast | Change |
|---|---|---|---|
| Revenue | ¥5.4tn | ¥6.0tn | +11.1% |
| Business profit | ¥540bn | ¥600bn | +11.1% |
| Profit before tax | ¥530bn | ¥600bn | +13.2% |
| Profit attributable to owners | ¥380bn | ¥440bn | +15.8% |
| Basic earnings per share | ¥113.09 | ¥130.91 | n/a |
Where the upgrade comes from
By segment, Energy business profit is now forecast at ¥380bn, up from ¥340bn, and Aerospace, Defense & Space at ¥180bn, up from ¥170bn. Plant & Infrastructure (¥90bn) and Industrial Solutions (¥30bn) were left unchanged. Energy business profit in the first half was ¥145.1bn against ¥80.7bn a year earlier, and the company named GTCC and nuclear as the main contributors. GTCC orders were strong in North America and Asia.
Across the group, first-half revenue rose 19.4% to ¥2.52tn and business profit rose 45.3% to ¥249.3bn. The margin was 9.9%, up 1.8 percentage points. Profit attributable to owners of the parent was ¥203.3bn, up 76.9%, and that figure combines continuing and discontinued operations. Order backlog stood at ¥14.2tn.
What the forecast still absorbs
The steam power business booked a ¥70bn loss on the integrated coal gasification combined cycle (IGCC) plants at Nakoso and Hirono, which were delivered in 2021. The full-year forecast carries that ¥70bn plus a ¥20bn risk buffer, ¥90bn in all, against ¥60bn of charges in the previous year. Non-current provisions on the balance sheet rose to ¥123.8bn at 30 September from ¥54.9bn at 31 March. The results summary gives no breakdown of that increase.
The forecast assumes ¥150 to the dollar and ¥180 to the euro and excludes any effect from the Middle East situation. Management describes the direct impact on orders and supply chains as limited but the situation as fluid. The first-half average sales rate was ¥158.1 to the dollar. The interim results summary is not subject to auditor review.
Shareholder returns are a separate decision
The board resolved on 6 November to buy back up to 120mn shares, 3.6% of shares outstanding excluding treasury stock, for up to ¥300bn. Purchases will run on the Tokyo Stock Exchange from 9 November 2026 to 8 November 2027, and all repurchased shares will be cancelled. The company gave improved capital efficiency as the reason.
The dividend forecast is unchanged: ¥29 a share for the year, made up of a ¥14 interim payment and a ¥15 year-end payment, against ¥25 the previous year. The interim dividend is due to start being paid on 4 December. The guidance revision itself raised the forecast for profit attributable to owners to ¥440bn from ¥380bn.