Mitsubishi Heavy Industries, Ltd. (MHVYF) Q3 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for joining us today. Allow me to walk through one through three of our 2025 financial results and the four-year earnings forecast. Please note that I will not read the materials word for word. I instead will focus upon some takeaways while providing some supplementary information to provide the overviews. First of all, with slide four, which shows the result in our KPI. Order intake was 5,029.1 billion yen. This is an increase of 13% YOY and a record cumulative high through Q3. Looking at the individual segments, order intake increased significantly in energy systems, particularly in GTCC. Although not shown on slide 4, our order backlog exceeded 12 trillion yen, an increase of approximately 2 trillion yen from the end of the previous fiscal year. Revenue increased 9% to 3,329.2%. 26.9 billion yen. Business profit increased 26% to 301.2 billion yen and was up YOY in all segments except energy, which booked some one-time expenses in Q2. Net income increased 23% to 210.9 billion yen, which was also a record high through Q3. Top right side, free cash flow was positive 167.6 billion yen. Left bottom, the interest-bearing debt decreased to 573.9 billion yen. Please refer to the table near the bottom of page 7. 167.6 billion yen in free cash flow included 256.7 billion yen in operating cash flow. This is mainly due to the increased profit as well as effort to secure advanced payments in GTCC against the backdrop of strong demand for gas turbines. Slide 8 shows the balance sheet. Please note that assets and the liabilities related to Mitsubishi Lotus Next are included in assets and liabilities held for sales. Total assets were 7,393 billion yen up 734.1 billion yen from the end of the previous fiscal year, excluding an impact of 240 billion yen from foreign curre...