Mitsubishi Heavy Industries Achieves Highest-Ever Order Intake, Revenue, Net Income, and Free Cash Flow in FY2024, Increases Dividends, and Releases FY2025 Guidance

Tokyo - Mitsubishi Heavy Industries, Ltd. (MHI, TSE Code: 7011) announced that order intake increased 5.8% year-on-year to ¥7,071.2 billion in the fiscal year ended March 31, 2025. Revenue rose 7.9% to ¥5,027.1 billion year-on-year, resulting in profit from business activities (business profit) of ¥383.1 billion, a 35.6% increase over the previous fiscal year, which represents a profit margin of 7.6%. Profit attributable to owners of parent (net income) was ¥245.4 billion, an increase of 10.6% year-on-year, with a profit margin of 4.9%. EBITDA was ¥541.3 billion, a 25.1% increase over FY2023, with an EBITDA margin of 10.8%, up 1.5 percentage points year-on-year.

(billion yen, except where otherwise stated)

(billion yen, except where otherwise stated)

In Energy, order intake increased by ¥210.2 billion YoY, which reflected continued strong demand in Gas Turbine Combined Cycle (GTCC) and Aero Engines. Contracts for 25 large frame gas turbine units were concluded during FY2024, the majority of which were from customers in the Americas. Revenue increased by ¥92.1 billion YoY. The largest gains were seen in GTCC, which worked to execute its sizeable backlog, and Aero Engines. Segment business profit increased by ¥55.4 billion YoY due to increased revenue and higher margins in GTCC, as well as increased revenue and the rebound from one-time expenses incurred in FY2023 in Aero Engines, together with stable performance in Nuclear Power.

In P&I, order intake and revenue increased by ¥117.0 billion YoY and ¥18.8 billion YoY, respectively, due to favorable performance in Metals Machinery and Machinery Systems. Higher revenue and margins in Metals Machinery and increased revenue in Machinery Systems helped to raise segment business profit by ¥14.8 billion YoY.

In LT&D, revenue decreased by ¥7.4 billion YoY due to a contraction in units sold in Logistics Systems despite increased sales in Heating, Ventilation & Air Conditioning (HVAC). The decrease in units sold in Logistics System combined with additional costs from supply chain disruption in Turbochargers resulted in a ¥23.4 billion YoY decrease in segment business profit.

In ADS, order intake increased by ¥31.4 billion YoY due to slightly higher order intake for Naval Ships and Space Systems within Defense & Space. Revenue increased by ¥239.0 billion YoY, mainly in Defense & Space. Increased revenue and higher margins in Defense & Space served to increase segment business profit by ¥27.2 billion YoY.

FY2025 Earnings Forecast
MHI issued guidance for the period ending March 31, 2026. The forecast targets further increases in revenue, business profit, and net income over FY2024 actual. The main driver of revenue growth is expected to be Defense & Space in ADS, which is working to execute on a large order backlog accumulated since FY2023. Higher revenue and improved project margins will contribute to an increase in business profit. A full-year dividend of ¥24/share is planned.

(billion yen, except where otherwise stated)

(billion yen, except where otherwise stated)

CFO Message
"FY2024 was truly a remarkable year, with many of our businesses performing beyond expectations, which allowed us to report record figures in terms of order intake, revenue, net income, and free cash flow - this following what was by all accounts an extremely robust FY2023," said Hisato Kozawa, MHI's Chief Financial Officer. He continued: "Regarding order intake, GTCC and Aero Engines in Energy, and Metals Machinery in P&I were star performers, and Defense & Space nearly matched the large order intake booked in FY2023. As a result, total orders in FY2024 exceeded the high bar set in the previous fiscal year. Revenue increased in Energy, P&I, and ADS, which were executing on substantial order backlogs. Increased revenue, improved margins, the positive impact from yen depreciation, as well as gains on fixed asset sales drove the large profit growth seen during this period.

"Today, we have also announced our earnings forecast for FY2025, which projects another record year for revenue and net income," Kozawa went on. "Strong progress in project execution in GTCC and Defense, together with continued high demand in Aero Engines and HVAC, as well as a certain amount of recovery in Logistics Systems and Commercial Aviation will drive this revenue growth. Higher revenue combined with better margins will allow us to achieve ¥420 billion in business profit at a margin of 7.8%. In closing, please note that our earnings forecast does not reflect potential impact from the recent increase in global economic uncertainty, including that associated with tariffs. That said, we will aim to minimize any negative impact with a variety of countermeasures, such as negotiating cost passthroughs with our customers."

Attachment 1: FY2024 Financial Results

• Financial Results (881 KB)

Attachment 2: Presentation Materials of Financial Results

• Presentation Materials (966 KB)

Downloadable PDF of this press release

• Press Release (183 KB)

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.
Note that the earnings forecast contained herein includes neither upside nor downside risk from US tariff policy impact.