Mitsubishi Heavy Industries Earnings Update

Mitsubishi Heavy Industries reported FY3/26 profits in line with consensus and provided FY3/27 guidance that exceeds analyst expectations when adjusted for subsidiary changes. Goldman Sachs maintains a Buy rating and ¥6,000 price target based on strong momentum in gas turbines and defense contracts.

Key Takeaways

• 1.FY3/26 business profits of ¥432.2 bn were in line with consensus, driven by strong performance in the energy systems segment.
• 2.FY3/27 business profit guidance is effectively above expectations after adjusting for the deconsolidation of Mitsubishi Logisnext.
• 3.The Aerospace & Defense business saw significant order growth, notably from a frigate contract for Australia.

Table of Contents

• Earnings surprises
• Guidance surprises
• Our view
• Investment Thesis - Mitsubishi Heavy Industries
• Price Target Risks and Methodology - Mitsubishi Heavy Industries (7011.T)
• Exhibit 1: MHI: Earnings summary
• Disclosure Appendix

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