Mitsubishi Heavy Industries Sees 11% Increase in Profit for Fiscal 2024

Mitsubishi Heavy Industries' fiscal 2024 profit rose 11%. The company's energy segment saw growth in thermal power generation and nuclear power systems. The plants & infrastructure segment experienced growth in steelmaking machinery and merchant ships. The logistics, thermal & drive segment saw growth in logistics equipment and heat and cooling products. The aircraft, defense & space segment experienced growth in civil aircraft and defense aircraft.

Mitsubishi Heavy Industries, Ltd. (MHI) has announced robust financial results for its fiscal year ended March 31, 2024. The company's net income increased by 11% year-on-year (YoY) to ¥245.4 billion, driven by strong performances across its segments. The energy segment, particularly in thermal power generation and nuclear power systems, contributed significantly to this growth. The plants & infrastructure segment also experienced notable expansion, with growth in steelmaking machinery and merchant ships. The logistics, thermal & drive segment saw increases in logistics equipment and heat and cooling products. The aircraft, defense & space segment showed growth in both civil and defense aircraft.

Order intake grew by 5.8% YoY to ¥7,071.2 billion, with the largest gains in the GTCC in Energy Systems and Metals Machinery in Plants & Infrastructure Systems. Revenue increased by 7.9% to ¥5,027.1 billion, with the largest contributions from the Defense & Space segment. Business profit rose by 35.6% to ¥383.1 billion, largely due to higher revenue, improved margins, the positive impact from yen depreciation, and gains on fixed asset sales. Net income increased by 10.6% to ¥245.4 billion, with a profit margin of 4.9%. Free cash flow grew by ¥142.6 billion YoY to ¥342.7 billion.

MHI also announced a ¥3/share YoY increase in full-year dividends to ¥23/share. The company issued FY2025 guidance, aiming for ¥5.4 trillion in revenue, ¥420 billion in business profit, and ¥24/share in full-year dividends. The forecast projects further increases in revenue, business profit, and net income over FY2024 actual, driven by strong progress in project execution in GTCC and Defense, along with continued high demand in Aero Engines and HVAC.

References:
[1] https://www.mhi.com/news/25050901.html
[2] https://www.indexbox.io/blog/mitsubishi-heavy-industries-eyes-profit-surge-with-defense-demand/