Tokyo – Mitsubishi Heavy Industries, Ltd. (MHI, TSE Code: 7011) announced that order intake increased 8.5% year-on-year to ¥3,314.7 billion in the half year ended September 30, 2025. Revenue rose 7.3% year-on-year to ¥2,113.7 billion, resulting in profit from business activities (business profit) of ¥171.5 billion, a 2.1% increase over the previous fiscal year, which represented a profit margin of 8.1%. Profit attributable to owners of parent (net income) was ¥114.9 billion, an increase of 7.3% year-on-year, with a profit margin of 5.4%. EBITDA was ¥229.6 billion, a 2.5% increase over 1H FY2024, with an EBITDA margin of 10.9%.
(billion yen, except where otherwise stated)
| 1H FY2025 Financial Results | 1H FY2024 (Note) | 1H FY2025 | YoY | YoY% |
|---|---|---|---|---|
| Order Intake | 3,054.6 | 3,314.7 | +260.0 | +8.5% |
| Revenue | 1,969.2 | 2,113.7 | +144.4 | +7.3% |
|
Profit from Business Activities Profit Margin |
168.0 8.5% |
171.5 8.1% |
+3.4 -0.4 pts |
+2.1% – |
|
Profit Attributable to Owners of Parent Profit Margin |
107.1 5.4% |
114.9 5.4% |
+7.7 ±0.0 pts |
+7.3% – |
|
EBITDA EBITDA Margin |
224.1 11.4% |
229.6 10.9% |
+5.5 -0.5 pts |
+2.5% – |
| FCF | -85.7 | 151.0 | +236.8 | – |
(billion yen, except where otherwise stated)
| 1H FY2025 Financial Results by Segment | Order Intake | Revenue | Business Profit | |||
|---|---|---|---|---|---|---|
| 1H FY2025 |
YoY (Note) | 1H FY2025 |
YoY (Note) | 1H FY2025 |
YoY (Note) | |
| Energy Systems (Energy) | 1,981.2 | +674.5 | 871.0 | +38.8 | 80.7 | -22.4 |
| Plants & Infrastructure Systems (P&I) | 490.6 | -108.7 | 415.9 | +36.7 | 44.6 | +16.4 |
| Logistics, Thermal & Drive Systems (LT&D) | 292.8 | -35.9 | 282.4 | -21.4 | 7.6 | +1.3 |
| Aircraft, Defense & Space (ADS) | 545.0 | -257.0 | 538.8 | +107.1 | 60.3 | +16.3 |
| Others, Corporate & Eliminations (OC&E) | 4.9 | -12.6 | 5.4 | -16.7 | -21.8 | -8.3 |
| Total | 3,314.7 | +260.0 | 2,113.7 | +144.4 | 171.5 | +3.4 |
- 1H FY2024 results on which YoY figures are based have been retroactively adjusted to reflect the planned sale of ML shares.
In Energy, order intake increased by ¥674.5 billion YoY mainly due to continued strong demand in Gas Turbine Combined Cycle (GTCC). Contracts for 23 large frame gas turbine units—up 14 units YoY—were concluded during 1H, the majority of which were from customers in North America and Asia. Revenue increased by ¥38.8 billion YoY; the largest gains were seen in GTCC, which continued to execute its sizeable backlog. Segment business profit decreased by ¥22.4 billion YoY due to one-time charges in Steam Power, which offset strong performance in GTCC from both higher revenue and margins.
In P&I, order intake decreased by ¥108.7 billion YoY due to the absence of large orders booked in the previous fiscal year in Metals Machinery and Machinery Systems. Revenue grew by ¥36.7 billion YoY. Improved margins in Metals Machinery and Machinery Systems helped to raise segment business profit by ¥16.4 billion YoY.
In LT&D, revenue decreased by ¥21.4 billion YoY due to a decline in units sold in Turbochargers and Heating, Ventilation & Air Conditioning (HVAC) and foreign exchange impact in HVAC. Steady performance in Engines on the back of strong demand in Asia, combined with the rebound from one-time charges associated with a supply chain disruption in Turbochargers during the previous fiscal year, resulted in a ¥1.3 billion YoY increase in segment business profit.
In ADS, order intake decreased by ¥257.0 billion YoY due to a high base effect from large orders booked in Defense & Space during the previous fiscal year. Revenue increased by ¥107.1 billion YoY, mainly in Defense & Space, where steady progress in backlog execution continued. Increased revenue and higher margins in Defense & Space and Commercial Aviation served to increase segment business profit by ¥16.3 billion YoY.
FY2025 Earnings Forecast
MHI revised its guidance for the period ending March 31, 2026, increasing the forecasts for order intake and revenue over the previous announcement made on September 30, 2025, based on stronger-than-anticipated performance during 1H. The full-year dividend forecast of 24 yen per share was unchanged from the announcement made on August 5, 2025.
(billion yen, except where otherwise stated)
| FY2025 Earnings Forecast | FY2024 Actual (Note) |
FY2025 Forecast (9/30 Announcement) |
FY2025 Forecast (Revised) |
Revised vs. Previous |
|---|---|---|---|---|
| Order Intake | 6,405.1 | 5,250.0 | 6,100.0 | +850.0 |
| Revenue | 4,361.1 | 4,750.0 | 4,800.0 | +50.0 |
|
Profit from Business Activities Profit Margin |
354.9 8.1% |
390.0 8.2% |
390.0 8.1% |
– -0.1 pts |
|
Profit Attributable to Owners of Parent Profit Margin |
245.4 5.6% |
230.0 4.8% |
230.0 4.8% |
– – |
|
ROE |
10.7% |
– |
10% |
– |
|
EBITDA EBITDA Margin |
469.9 10.8% |
– – |
510.0 10.6% |
– – |
| FCF | 342.7 | – | 0.0 | – |
| Dividends | 23 yen | – | 24 yen | – |
- FY2024 results have been retroactively adjusted to reflect the planned sale of ML shares.
(billion yen, except where otherwise stated)
| FY2025 Earnings Forecast by Segment | Order Intake | Revenue | Business Profit | |||
|---|---|---|---|---|---|---|
| Previous | Revised | Previous | Revised | Previous | Revised | |
| Energy | 2,200.0 | 3,200.0 | 1,850.0 | 2,000.0 | 240.0 | 240.0 |
| P&I | 900.0 | 900.0 | 850.0 | 850.0 | 60.0 | 70.0 |
| LT&D | 750.0 | 600.0 | 750.0 | 600.0 | 40.0 | 20.0 |
| ADS | 1,400.0 | 1,400.0 | 1,350.0 | 1,350.0 | 140.0 | 140.0 |
| OC&E | 0.0 | 0.0 | -50.0 | 0.0 | -90.0 | -80.0 |
| Total | 5,250.0 | 6,100.0 | 4,750.0 | 4,800.0 | 390.0 | 390.0 |
CFO Message
“The strong growth MHI achieved in the first quarter continued through the first half of this fiscal year, with order intake, revenue, and business profit all up year-on-year, and net income marking an all-time high for the company,” MHI Chief Financial Officer Hiroshi Nishio commented. Nishio continued, “GTCC was our star performer in terms of order intake, booking 23 large frame gas turbine units across North America and Asia. We continue to see high demand for gas turbines particularly in the U.S., where new electricity demand from the data center buildout and other factors are driving capital expenditures at our utility customers. Revenue was up especially in GTCC and Defense & Space, which made excellent progress executing on their sizeable backlogs. Business profit growth was small, but the fact that we were able to beat last year’s figure—despite one-time expenses recognized in Steam Power—reflects the high normalized margins we are achieving today in GTCC and some other businesses.”
“Based on our results through the first half,” Nishio went on, “we have increased our order intake and revenue forecasts due to better-than-expected results in Energy Systems, mainly GTCC. We have maintained the business profit guidance announced on September 30, with continued strength from growing revenue and improving margins in other businesses compensating for one-time expenses in Energy Systems in excess of the initial 20-billion-yen risk buffer and weakness in the remainder of the Logistics, Thermal & Drive Systems segment. MHI’s strong performance despite growing uncertainty in global markets is a testament to our resilience as a company, which has been made possible in part by our continued efforts to evolve our portfolio of businesses. We appreciate the continued support of our shareholders and other stakeholders as we work to meet our full-year commitments during the second half of the fiscal year.”
Attachment 1: 1H FY2025 Financial Results
Attachment 2: Presentation Materials of Financial Results
Downloadable PDF of this press release
Note regarding forward looking statements:
Forecasts regarding future performance outlined in these materials are based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly from these projections due to a number of factors, including, but not limited to, economic trends affecting the Company’s operating environment, fluctuations in the value of the Japanese yen to the U.S. dollar and other foreign currencies, and trends in Japan’s stock markets. The results projected here should not be construed in any way as a guarantee by the Company.
In response to U.S. tariff policy, the Company is pursuing mitigation strategies focused on cost passthroughs. As of the date of this release, the Company expects any impact on performance to be limited in nature.