Category: 3. Business

Q2/H1 2025 developments

• HUGO BOSS achieves revenue improvements in the second quarter (Q2: +1%; H1: 0%)¹ against ongoing challenging market environment 
• Execution of key brand and product initiatives supports top-line momentum, including successful launch of first Beckham X BOSS collection 
• EMEA (Q2: +3%; H1: +1%) and the Americas (Q2: +2%; H1: +1%) return to growth; muted consumer sentiment in China weighs on performance in Asia/Pacific (Q2: –5%; H1: –7%)
• Solid growth in digital (Q2: +7%; H1: +5%) and brick-and-mortar wholesale (Q2: +3%; H1: 0%); momentum in brick-and-mortar retail improves slightly (Q2: –1%; H1: –2%)
• Gross margin remains stable year over year, as further efficiency gains in sourcing compensate for adverse channel mix effects and overall market headwinds 
• Operating expenses are below the prior-year level (Q2: –3%; H1: –2%), reflecting ongoing strict cost discipline and additional efficiency gains across key business areas
• EBIT returns to growth (Q2: +15%; H1: +2%), resulting in an EBIT margin increase of 120 basis points to 8.1% in Q2 (H1: +20 bp to 7.1%)
• Robust growth in EPS (Q2: +27%; H1: +9%) supported by improvements in financial result 

Outlook 2025

• Full-year outlook confirmed: reported Group sales to remain broadly stable (–2% to +2%); EBIT to increase by +5% to +22%, with EBIT margin targeted between 9.0% and 10.0% 
• Macroeconomic volatility to remain elevated, fueled by ongoing tariff uncertainty; subdued global consumer sentiment continues to weigh on industry development
• Key strategic initiatives to support business performance in H2, including launch of new brand campaigns and BOSS Fashion Show in Milan
• Ongoing strong focus on sustainable cost efficiency to drive profitability improvements also in the second half of 2025

Daniel Grieder, Chief Executive Officer of HUGO BOSS: “The second quarter of 2025 was once again marked by a challenging macroeconomic and industry environment, with global consumer confidence remaining at a low level. Against this backdrop, we delivered solid top- and bottom-line improvements, supported by further efficiency gains through our rigorous and sustainable cost discipline. Importantly, we remain committed to our long-term ambition of strengthening brand relevance over short-term gains. The successful launch of our Beckham X BOSS collection in April is just one example of how we are continuing to drive brand momentum, even in a volatile environment.

Based on our performance in the first half of 2025, we confirm our full-year outlook for both sales and operating profit. As we enter the second half of the year, our focus remains on exciting consumers, unlocking additional business opportunities and maintaining a consistent focus on high-quality growth. I am particularly excited about our upcoming Fall/Winter 2025 collections and the launch of our new brand campaigns later this month, which are set to further boost brand relevance.

While we remain vigilant in monitoring macroeconomic developments, including the ongoing tariff discussions, our focus remains on what we can control. Building on four consecutive quarters of strict cost discipline, we are well positioned to drive further sustainable efficiencies. By intensifying our focus on fixed cost management and maintaining disciplined execution, we are confident of strengthening our profitability in the quarters ahead. At the same time, we will not compromise on our long-term strategy of further investing into our brands, product quality, distribution excellence, and our strong operational platform.

Looking ahead, we remain confident in the great potential of our brands and our business model. By continuing to invest in brand-building initiatives, strengthening global relevance, and fostering customer loyalty, we are reinforcing our commitment to long-term profitable growth and creating sustainable value for our shareholders.”

¹Revenue-related growth rates shown in brackets are on a currency-adjusted basis.

If you have any questions, please contact: 
Media Relations 
Carolin Westermann 
Senior Vice President Global Corporate Communications 
Phone: +49 7123 94-86321 
E-mail: carolin_westermann(at)hugoboss.com 

Investor Relations 
Christian Stöhr 
Senior Vice President Investor Relations 
Phone: +49 7123 94-87563 
E-mail: christian_stoehr(at)hugoboss.com

GROUP.HUGOBOSS.COM
YOUTUBE: @HUGOBOSSCorporate
LINKEDIN: HUGO BOSS

A fleet of Royal Mail trucks and vans joined a funeral cortege in honour of a colleague after his death from cancer.

Andrew Farnsworth, 56, who worked for the postal service for more than 40 years, had recently retired from its Stockport office after receiving a terminal diagnosis.

The red liveried vehicles stopped traffic as they made their way from Mr Farnsworth’s father’s house to the crematorium in Edgeley.

Paying tribute to the father-of-three, who lived in Wirral with his partner Caroline, colleague Anne-Marie Pollard-Vearnals said he had “brought us all together and helped us bond and socialise outside of work”.

Ms Pollard-Vearnals added: “At work, Andrew – or Farni as all his friends knew him -would organise race trips and Christmas dos to bring everyone together.”

She described him as “well-loved at work”, and said up to 400 people attended the service for him at the crematorium.

The Royal Mail fleet cortege was organised at the request of his partner Carloline, Ms Pollard-Vearnals added.

Amsterdam, 5 August 2025 – Arcadis (EURONEXT: ARCAD), a global leader in sustainable design, engineering, and consultancy solutions, today announces that its Supervisory Board has nominated Simon Crowe for the position of Chief Financial Officer (CFO) and member of the Executive Board, succeeding Virginie Duperat-Vergne, who left Arcadis on 31 May 2025.

The Supervisory Board will propose Simon’s appointment as CFO and member of the Executive Board at an extraordinary General Meeting, to be held on 30 September 2025.

Simon is a proven Group CFO with more than 30 years of experience leading finance functions in both NYSE-listed and private equity-backed businesses. He has operated across Europe, Asia, North America, and Africa, and has a strong track record of delivering value through strategic growth, operational efficiency, M&A execution, a private equity exit and a successful NYSE Initial Public Offering.

Most recently, Simon served as CFO at Wood Mackenzie, a global provider of data and analytics solutions for the energy, renewables, and natural resources sectors. Prior to that, he was CFO at ERM, where he played a pivotal role in transforming the business, orchestrating the execution and integration of over a dozen acquisitions, driving sustained double-digit annual growth, and supporting its sale from OMERS & AIMCo to KKR in a landmark transaction valued at approximately 20x EBITDA.

Earlier in his career, Simon held the role of Group CFO at Acergy managing a $5 billion global business and overseeing the complex finance integration following its merger with Subsea7. He began his career at Rhône Poulenc and subsequently held senior finance roles at National Power, Aquila, Transocean and GasLog LNG. Simon holds British nationality and a degree in Physics from the University of Liverpool.

Simon will join Arcadis on 15 September as CFO Nominee for the interim period leading up to the EGM.

Alan Brookes, Chief Executive Officer of Arcadis, commented:

“Simon will be a fantastic addition to our leadership team at Arcadis. His transparent leadership style and strong track record make him a great fit for our business. With deep commercial and financial insight, and international experience across consulting, infrastructure, and energy, Simon brings the capabilities we need to align our financial strategy with our global ambitions and support our continued growth. I also want to thank Willem Baars for providing continuity and leadership as interim CFO during this important transition.”

Michiel Lap, Chairman of the Arcadis Supervisory Board, added:

“After a thorough search and selection process, we are very pleased to nominate Simon as our new CFO. He has worked in our industry, and brings significant global controlling, corporate finance and capital markets experience, as well as a track record of creating long term value. On behalf of the Supervisory Board, I would like to thank Willem Baars for stepping in as interim CFO and fulfilling this role with such competence.”

Strategic execution on track 

Fresenius Medical Care, the world’s leading provider of products and services for individuals with renal disease, maintained strong focus on the execution of its strategic plan. During the second quarter of 2025, the FME25+ transformation program continued its positive momentum, delivering EUR 58 million additional sustainable savings while related one-time costs, treated as special items, amounted to EUR 53 million. The Company confirms its full year FME25+ target of around EUR 180 million additional annual savings, totaling to EUR 1,050 million by year end 2027. The Company assumes related one-time costs of EUR 100 million to 150 million in 2025 and EUR 1,000 million to 1,050 million for the total program.

The Company continues the execution of its portfolio optimization plan to exit non-core and margin-dilutive assets. Special items associated with portfolio optimization amounted to negative EUR 6 million in the second quarter.

All transactions that were realized as part of Fresenius Medical Care’s portfolio optimization plan in 2024 are estimated to negatively impact full year 2025 Group revenue growth by around one percent. Related costs will be treated as special items in operating income.

As part of the new capital allocation framework, as presented at its recent Capital Markets Day, Fresenius Medical Care commits to return excess capital to shareholders. The Company announced an initial share buyback of EUR 1 billion within two years. The Company intends to initiate the first tranche of the program in August.  

Organic revenue growth¹ across all segments 

In the second quarter 2025, Group revenue increased by 1% (+5% at constant currency, +7% organic¹) to EUR 4,792 million. Divestitures realized as part of the portfolio optimization plan affected the revenue development by -110 basis points.

Care Delivery revenue decreased by 3% (+1% at constant currency, +4% organic¹) to EUR 3,381 million. Divestitures realized as part of the portfolio optimization plan affected the revenue development by -190 basis points.

In Care Delivery U.S., revenue decreased by 2% (+3% at constant currency, +3% organic¹) to EUR 2,817 million. Reimbursement rate increases and a favorable payor mix development had a positive impact while exchange rates developed unfavorably. The severe flu season in the U.S. in the first months of the year resulted in significantly increased mortality compared to the elevated mortality level in the prior year. This impacted the treatment numbers in the second quarter and for the remainder of the year. The effect was partially offset in the second quarter by an accelerated number of patient new starts. Therefore, U.S. same market treatment growth came in flat year-on-year.

In Care Delivery International, revenue decreased by 8% (-8% at constant currency, +5% organic¹) to EUR 564 million. The effect of closed or sold operations, mainly related to portfolio optimization, were partially offset by organic growth¹. Same market treatment growth amounted to +1.7%.

Fresenius Medical Care now reports Value-Based Care, previously part of Care Delivery, as a standalone segment. The new segmentation reflects the growing importance of this business and the Company’s clear commitment towards enhancing financial reporting transparency. Value-Based Care revenue grew by 22% (+28% at constant currency, +28% organic¹) to EUR 506 million, mainly driven by significantly higher number of member months due to contract expansion, while exchange rates developed unfavorably. 

Care Enablement revenue declined by 1% (+3% at constant currency, +3% organic¹) to EUR 1,348 million. Volume growth and continued positive pricing momentum was offset by unfavorable exchange rate effects.

Within Inter-segment eliminations⁴, revenue for services provided and products transferred between the operating segments at fair market value came in 10% below prior year at negative EUR 443 million (-6% at constant currency). In line with the new segment reporting, services provided by the Care Delivery segment for patients managed under the Value-Based Care segment are now being included within inter-segment eliminations.

In the first half 2025, Group revenue increased by 2% (+3% at constant currency, +6% organic¹) to EUR 9,673 million. Divestitures realized as part of the portfolio optimization plan impacted the revenue development by  190 basis points. Care Delivery revenue decreased by 2% (-1% at constant currency, +3% organic¹) to EUR 6,828 million, with Care Delivery U.S. growing by 1% (+2% at constant currency, +2% organic¹) to EUR 5,709 million and Care Delivery International decreasing by 14% (-14% at constant currency, +5% organic¹) to EUR 1,119 million. Divestitures realized as part of the portfolio optimization plan affected the revenue development of Care Delivery by -300 basis points and the revenue development of Care Delivery International by -1,600 basis points. U.S. same market treatment growth came in flat while International same market treatment growth improved to 2.1%. Value-Based Care revenue increased by 24% (+25% at constant currency, +25% organic¹) to EUR 1,035 million. Care Enablement revenue increased by 2% (+4% at constant currency, +4% organic¹) to EUR 2,715 million. Inter-segment eliminations decreased by 7% (-6% at constant currency) to a deduction of EUR 905 million.

Double-digit operating income growth and further margin expansion 

In the second quarter 2025, Group Operating income remained stable (+3% at constant currency) at EUR 425 million, resulting in a margin of 8.9% (Q2 2024: 8.9%). Operating income excluding special items increased by 9% (+13% at constant currency) to EUR 476 million, resulting in a margin² of 9.9% (Q2 2024: 9.1%). Divestitures realized during the second quarter were neutral on operating income margin development.

Operating income in Care Delivery increased by 3% (+9% at constant currency) to EUR 346 million, resulting in a margin of 10.2% (Q2 2024: 9.6%). Operating income excluding special items came in flat (+5% at constant currency) at EUR 378 million, resulting in a margin² of 11.2% (Q2 2024: 10.9%). Compared to previous year, operating income development was driven by positive price effects, the impact from phosphate binders, and savings from the FME25+ program. The development was negatively impacted by higher personnel expenses due to planned merit increases and unfavorable medical benefit costs as well as other inflationary cost increases. 

Operating income in Value-Based Care amounted to a loss of EUR 9 million, compared to a loss of EUR 6 million in the prior year, resulting in a margin of -1.7% (Q2 2024: -1.5%). Identically, operating income excluding special items amounted to a loss of EUR 9 million, compared to a loss of EUR 6 million in the prior year, resulting in a margin² of -1.7% (Q2 2024: -1.5%). The development was mainly driven by an unfavorable savings rate and inflation, while the effect from an increase in member months contributed positively. 

Operating income in Care Enablement increased by 36% (+39% at constant currency) to EUR 89 million, resulting in a margin of 6.6% (Q2 2024: 4.8%). Operating income excluding special items significantly increased by 76% (+79% at constant currency) to EUR 117 million, resulting in a margin² of 8.7% (Q2 2024: 4.9%). The improvement compared to the previous year’s quarter was mainly driven by globally higher volumes and positive pricing developments as well as savings from the FME25+ program. These positive effects were partially offset by inflationary cost increases, which developed in line with expectations.

Operating income for Corporate amounted to EUR 7 million (Q2 2024: EUR 36 million). Humacyte remeasurements, treated as special items in the Corporate line, amounted to EUR 10 million and virtual power purchase agreements contributed EUR 15 million. Operating income excluding special items amounted to a loss of EUR 2 million (Q2 2024: EUR 5 million). 

In the first half 2025, Group operating income increased by 13% (13% at constant currency) to EUR 757 million, resulting in a margin of 7.8% (H1 2024: 7.1%). Operating income excluding special items increased by 11% (+12% at constant currency) to EUR 933 million, resulting in a margin² of 9.6% (H1 2024: 8.8%). Divestitures realized during the half year were neutral on operating income margin development. In Care Delivery, operating income increased by 33% (+34% at constant currency) to EUR 666 million, resulting in a margin of 9.8% (H1 2024: 7.2%). Operating income excluding special items increased by 4% (+5% at constant currency) to EUR 734 million, resulting in a margin² of 10.7% (H1 2024: 10.1%). In Value-Based Care operating income amounted to a loss of EUR 6 million compared to an income of EUR 15 million in the prior year, resulting in a margin of -0.5% (H1 2024: 1.8%). Operating income excluding special items amounted to a loss of EUR 5 million compared to an income of EUR 15 million in the prior year, resulting in a margin² of -0.5% (H1 2024: 1.8%). In Care Enablement, operating income increased by 35% (+36% at constant currency) to EUR 183 million, resulting in a margin of 6.8% (H1 2024: 5.1%). Operating income excluding special items increased by 62% (+63% at constant currency) to EUR 231 million, resulting in a margin² of 8.5% (H1 2024: 5.4%).  

Net income³ increased by 20% (+23% at constant currency) to EUR 225 million in the second quarter 2025. Net income excluding special items increased by 26% (+30% at constant currency) to EUR 268 million. 

In the first half 2025, net income³ increased by 46% (+46% at constant currency) to EUR 376 million. Net income excluding special items increased by 28% (+29% at constant currency) to EUR 514 million.

Basic earnings per share (EPS) increased by 20% (+23% at constant currency) to EUR 0.77 in the second quarter 2025. Basic EPS excluding special items increased by 26% (+30% at constant currency) to EUR 0.91. 

In the first half 2025, basic EPS increased by 46% (+46% at constant currency) to EUR 1.28. Basic EPS excluding special items increased by 28% (+29% at constant currency) to EUR 1.75. 

Strong cash flow development and further improved net leverage ratio 

In the second quarter 2025, Fresenius Medical Care improved operating cash flow by 75% to EUR 775 million (Q2 2024: EUR 442 million), resulting in a margin of 16.2% (Q2 2024: 9.3%). The operating cash flow development was mainly driven by a favorable working capital development and phasing of federal income tax payments in the U.S. In the first half 2025, operating cashflow improved by 65% to EUR 938 million (H1 2024: EUR 570 million), resulting in a margin of 9.7% (H1 2024: 6.0%). 

Free cash flow⁵ significantly increased by 117% to EUR 628 million in the second quarter 2025 (Q2 2024: EUR 289 million), resulting in a margin of 13.1% (Q2 2024: 6.1%). In the first half 2025, Fresenius Medical Care generated free cash flow of EUR 649 million (H1 2024: EUR 287 million), resulting in a margin of 6.7% (H1 2024: 3.0%). 

Total net debt and lease liabilities were further reduced to EUR 9,315 million (Q2 2024: EUR 10,658 million). The net leverage ratio (net debt/EBITDA) improved to 2.7x in Q2 2025 (Q1 2025: 2.8x). Upon maturity, the Company redeemed a EUR 500 million bond on July 11, 2025. 

Patients, clinics and employees

As of June 30, 2025, Fresenius Medical Care treated 300,339 patients in 3,676 dialysis clinics worldwide and had 112,445 employees (headcount) globally, compared to 112,035 employees as of March 31, 2025.

Outlook 2025 confirmed

Fresenius Medical Care confirms its outlook for fiscal 2025 and expects revenue growth to be positive to a low-single digit percent rate compared to prior year. The Company expects operating income excluding special items to grow by a high-teens to high-twenties percent rate compared to prior year.

The expected growth rates for 2025 are at constant currency, excluding special items in operating income. The 2024 basis for the revenue outlook is EUR 19,336 million and for the operating income outlook is EUR 1,797 million.

Media conference call

Fresenius Medical Care will host a media conference call to discuss the results of the second quarter and first half of 2025 today, August 5, 2025, at 9:30 a.m. CEST / 3:30 a.m. EDT. The media conference call is for journalists, who can register via the following link: Registration. Details on the media conference call are also available here. Attendees who would like to follow the presentation parallel to the conference call can register here for the webcast. The webcast will only be broadcasted in “listen only” mode.

Investor conference call

Fresenius Medical Care will host a conference call for analysts and investors to discuss the results of the second quarter 2025 today, August 5, 2025, at 2:00 p.m. CEST / 8:00 a.m. EDT. Details are available here. A replay and a transcript will be available shortly after the call.

Please refer to our statement of earnings included at the end of this press release and to the attachments as separate PDF files for a complete overview of the results of the second quarter 2025. Our form 6-K disclosure provides more details.

 

¹At constant currency, adjusted for certain reconciling items including revenue from acquisitions, closed or sold operations and differences in dialysis days

²Adjusted for special items; for further details please see the reconciliation attached to the press release 

³Net income attributable to shareholders of Fresenius Medical Care AG

⁴The Company transfers products from the Care Enablement segment to the Care Delivery segment at fair market value. Services provided by the Care Delivery segment for patients managed under the Value-Based Care segment are also provided at fair market value. The associated internal revenues and expenses and all other consolidation of transactions are included within “Inter-segment eliminations”. 

⁵Net cash provided by / used in operating activities, after capital expenditures, before acquisitions, investments, and dividends

 

About Fresenius Medical Care:
Fresenius Medical Care is the world’s leading provider of products and services for individuals with renal diseases of which around 4.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,676 dialysis clinics, Fresenius Medical Care provides dialysis treatments for approx. 300,000 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

Disclaimer:
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care’s reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care does not undertake any responsibility to update the forward-looking statements in this release.

Tokyo – Mitsubishi Heavy Industries, Ltd. (MHI, TSE Code: 7011) announced that order intake decreased 4.3% year-on-year to ¥1,768.6 billion in the quarter ended June 30, 2025. Revenue rose 7.4% to ¥1,193.6 billion, resulting in profit from business activities (business profit) of ¥104.1 billion, a 24.7% year-on-year increase over the previous fiscal year, which represented a profit margin of 8.7%. Profit attributable to owners of parent (net income) was ¥68.2 billion, an increase of 9.5% year-on-year, with a profit margin of 5.7%. EBITDA was ¥143.2 billion, a 17.1% increase over Q1 FY2024, with an EBITDA margin of 12.0%, up 1.0 percentage point year-on-year.

(billion yen, except where otherwise stated)

Q1 FY2025 Financial Results	Q1 FY2024	Q1 FY2025	YoY	YoY%
Order Intake	1,847.5	1,768.6	-78.8	-4.3%
Revenue	1,111.5	1,193.6	+82.0	+7.4%
Profit from Business Activities Profit Margin	83.5 7.5%	104.1 8.7%	+20.6 +1.2 pts	+24.7% –
Profit Attributable to Owners of Parent Profit Margin	62.2 5.6%	68.2 5.7%	+5.9 +0.1 pts	+9.5% –
EBITDA EBITDA Margin	122.3 11.0%	143.2 12.0%	+20.9 +1.0 pt	+17.1% –
FCF	-126.2	64.3	+190.5	–

　

(billion yen, except where otherwise stated)

Q1 FY2025 Financial Results by Segment	Order Intake		Revenue		Business Profit
	Q1 FY2025	YoY	Q1 FY2025	YoY	Q1 FY2025	YoY
Energy Systems (Energy)	871.3	+66.7	423.2	+31.7	56.4	+6.0
Plants & Infrastructure Systems (P&I)	239.5	+11.1	207.9	+32.8	18.5	+10.9
Logistics, Thermal & Drive Systems (LT&D)	304.1	-25.4	299.2	-21.6	10.9	-3.7
Aircraft, Defense & Space (ADS)	350.8	-125.2	260.5	+48.8	28.8	+5.1
Others, Corporate & Eliminations (OC&E)	2.7	-6.0	2.6	-9.5	-10.5	+2.2
Total	1,768.6	-78.8	1,193.6	+82.0	104.1	+20.6

　

In Energy, order intake increased by ¥66.7 billion YoY, which mainly reflected continued strong demand in GTCC and Nuclear Power. Contracts for eight large frame gas turbine units were concluded during Q1 FY2025, mainly in North America. Revenue increased by ¥31.7 billion YoY with the largest gains seen in GTCC and Nuclear Power, which worked to execute their sizeable backlogs. Segment business profit increased by ¥6.0 billion YoY due to increased revenue and higher margins in GTCC, as well as increased revenue from after-sales services in Steam Power.

In P&I, order intake and revenue increased by ¥11.1 billion YoY and ¥32.8 billion YoY, respectively, due to strength in Engineering and Machinery Systems in terms of orders, and in all three main businesses in terms of revenue. Revenue growth and improved margins in all main businesses served to raise segment business profit by ¥10.9 billion YoY.

In LT&D, revenue decreased by ¥21.6 billion YoY due to a contraction in units sold in Logistics Systems and Heating, Ventilation & Air Conditioning (HVAC). Decreased revenue in these two businesses, higher cost of sales for Logistics Systems in the Americas, and negative impact from the stronger yen overall resulted in a ¥3.7 billion YoY decline in segment business profit.

In ADS, order intake decreased by ¥125.2 billion YoY due to a decline from the high level achieved in the previous fiscal year in Defense & Space. Revenue increased by ¥48.8 billion YoY as Defense & Space worked to execute the substantial backlog accrued over the past two fiscal years, and the production rate of Boeing 787 wing sets increased in Commercial Aviation. Increased revenue and higher margins in Defense & Space, together with the higher run rate in Commercial Aviation, served to increase segment business profit by ¥5.1 billion YoY.

　

FY2025 Earnings Forecast

MHI reiterated its guidance for the period ending March 31, 2026, which was first announced on May 9, 2025.

(billion yen, except where otherwise stated)

FY2025 Earnings Forecast	FY2024 Actual	FY2025 Forecast	YoY	YoY%
Order Intake	7,071.2	5,900.0	-1,171.2	-16.6%
Revenue	5,027.1	5,400.0	+372.8	+7.4%
Profit from Business Activities Profit Margin	383.1 7.6%	420.0 7.8%	+36.8 +0.2 pts	+9.6% –
Profit Attributable to Owners of Parent Profit Margin	245.4 4.9%	260.0 4.8%	+14.5 -0.1 pts	+5.9% –
ROE	10.7%	11%	+0.3 pts	–
EBITDA EBITDA Margin	541.3 10.8%	580.0 10.7%	+38.6 -0.1 pts	+7.1% –
FCF	342.7	-200.0	-542.7	–
Dividends	23 yen	24 yen	+1 yen	–

　

(billion yen, except where otherwise stated)

FY2025 Earnings Forecast by Segment	Order Intake	Revenue	Business Profit
Energy	2,200.0	1,850.0	240.0
P&I	900.0	850.0	60.0
LT&D	1,400.0	1,400.0	70.0
ADS	1,400.0	1,350.0	140.0
OC&E	0.0	-50.0	-90.0
Total	5,900.0	5,400.0	420.0

　

CFO Message

“Our performance in Q1 marked a strong start for the company overall, and we are generally on track to achieve our 2024 Medium-Term Business Plan targets,” said Hiroshi Nishio, MHI’s Chief Financial Officer. He continued: “We see continued strength in our growing core businesses: GTCC, Nuclear Power, and Defense. Order intake was particularly strong in GTCC, specifically in the Americas, where demand is robust for the high-efficiency large frame gas turbines in which we specialize. Revenue increased year-on-year as our businesses worked to execute substantial backlogs built up over the last few fiscal years. This revenue growth, combined with better margins, served to offset negative impact from the stronger yen and allowed us to steadily increase business profit.”

Nishio added, “Based on the progress made to date, we have reiterated our full-year earnings forecast for FY2025, which is unchanged from our initial announcement in May. Regarding the US tariff situation, we have seen only minimal direct impact on our Q1 results. Due to our substantial manufacturing, assembly, and after-sales services footprint in the US, the volume of transactions where MHI bears tariff costs is not particularly large. Going forward, we will continue to mitigate any tariff impact through cost passthroughs and other countermeasures.”

　

Attachment 1: Q1 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 US 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.