Mitsubishi Heavy Industries forecasts 9.6% operating profit growth in FY25 on defense demand.

Mitsubishi Heavy Industries projects a 9.6% growth in operating profit this year to ¥420 bln ($2.9 bln) due to robust defense demand. Aerospace and defense segment operating profit is expected to grow 40%, while energy systems profit is seen increasing 17%. The forecast does not account for potential impact from U.S. tariffs.

Tokyo - Mitsubishi Heavy Industries, Ltd. (MHI) has projected robust financial performance for the fiscal year ending March 31, 2026, with significant growth in operating profit driven by strong defense demand. The company anticipates a 9.6% increase in operating profit to ¥420 billion ($2.9 billion) [1].

Key highlights of the forecast include:
- Aerospace and defense segment operating profit is expected to grow by 40%, reflecting the continued high demand for defense-related products and services.
- Energy systems profit is projected to increase by 17%, driven by strong performance in Gas Turbine Combined Cycle (GTCC) and Aero Engines, as well as favorable market conditions.

The forecast does not account for potential impacts from U.S. tariffs, which may affect the company's operations and financial results [1]. However, MHI is actively working to mitigate any negative effects through various countermeasures, including cost passthroughs with customers.

MHI's Chief Financial Officer, Hisato Kozawa, noted that the company's performance in FY2024 was exceptional, with record figures in order intake, revenue, net income, and free cash flow. He attributed the strong performance to the successful execution of substantial order backlogs in various segments, including Energy, Plants & Infrastructure Systems, and Aircraft, Defense & Space [1].

The company's earnings forecast for FY2025 projects further growth in revenue and net income, with a focus on project execution in GTCC and Defense, as well as continued high demand in Aero Engines and HVAC. The forecast anticipates a full-year dividend of ¥24/share [1].

References:
[1] https://www.mhi.com/news/25050901.html