Mitsubishi Heavy Industries, Ltd. (MHVYF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, everyone. I am Nishio. I am the CFO. Thank you so much for participating today. So today I will speak about our Q1 FI 2025 financial results and the FI 2025 earnings forecast, followed by some supplemental information about U.S. tariffs. The materials have been released in advance of today's briefing, so I will omit an explanation of each slide while focusing on the main points and supplemental information. First, look at slide four. I'd like to provide an overview of our financial results. Please refer to the slide which outlines our financial results in terms of our main KPIs. Order intake was ¥1,768.6 billion, with orders increasing in energy systems and plants and infrastructure systems. Overall volume decreased slightly due to a decline in defense and space, which booked several large orders in Q1 FY2024, but continued to maintain a high level. Although not shown on slide 4, order backlog was 10,772,900,000 yen, an increase of about 500 billion yen from the end of FY2024. Revenue increased by 7% to 1,193.6 billion yen. This was a record high for our first quarter. Business profit reached the 100 billion yen mark. This was a 25% increase year over year, and also a record high for a first quarter. Net income increased by 10% year-over-year to 68.2 billion yen. Although this is small compared to the growth in business income, we recorded a foreign exchange gain of approximately 20 billion yen in Q1 FY2024, when the yen depreciated significantly. The low growth rate was due to this. Net income also reached a record high. Next, let us go to slide 7. Please refer to free cash flow shown at the bottom of slide 7. Free cash flow was ¥64.3 billion, of which operating cash flow was ¥89.6 billion. This was mainly due to an increase in advances received on the back o...