Financial Results (785 KB) (financial results)

2026-5-12

Consolidated (IFRS)

(Billions of yen)

Note1: Figures in parentheses are negative.

Note2: "Order intake", "revenue", "profit from business activities", and "profit before income taxes" are presented excluding discontinued operations, reflecting amounts for continuing operations only.

1/2

Non-consolidated (Japanese GAAP)

(Billions of yen)

Note: Figures in parentheses are negative.

2/2

May 12, 2026

Company name: Mitsubishi Heavy Industries, Ltd.

Listing: Tokyo Stock Exchange / Nagoya Stock Exchange / Fukuoka Stock Exchange / Sapporo Securities Exchange

Securities code: 7011

URL: https://www.mhi.com/

Representative: Eisaku Ito, President and CEO

Inquiries: Kentaro Ikeda, Senior General Manager of Financial Planning Division Scheduled date of annual general meeting of shareholders: June 26, 2026

Scheduled date to commence dividend payments: June 29, 2026 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors, financial analysts, and media)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Revenue		Profit from business activities		Profit before income taxes		Profit
      	Millions of yen	％	Millions of yen	％	Millions of yen	％	Millions of yen	％
      FY2025	4,974,168	14.1	432,218	21.8	474,694	34.8	345,942	32.0
      FY2024	4,361,127	-	354,965	-	352,073	-	261,997	7.6

      	Profit attributable to owners of the parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      	Millions of yen	％	Millions of yen	％	Yen	Yen
      FY2025	332,129	35.3	838,943	312.8	98.86	98.84
      FY2024	245,447	10.6	203,213	(65.5)	73.04	73.02

      	Return on equity attributable to owners of parent	Ratio of profit before tax to total assets	Ratio of operating profit to revenue
      	%	%	%
      FY2025	12.2	6.4	8.7
      FY2024	10.7	5.5	8.1

      [Reference] Share of profit of investments accounted for using the equity method FY2025: ¥16,690 million

      FY2024: -¥2,607 million

      *1 "Profit from business activities" on the consolidated statement of profit or loss is presented as a measure that enables continuous comparison and assessment of the Group's business performance. "Profit from business activities" is calculated by subtracting "cost of sales," "selling, general and administrative expenses," and "other expenses" from "revenue" and adding "share of profit (loss) of investments accounted for using the equity method" and "other income" to the resulting amount. "Other income" and "other expenses" consist of dividend income, gains or losses on sales of fixed assets, impairment losses on fixed assets, and others.

      *2 During the fiscal year ended March 31, 2026, the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd), a consolidated subsidiary of the Company, and its subsidiaries and affiliates, have been classified as discontinued operations. Accordingly, "revenue", "profit from business activities", and "profit before income taxes" are presented excluding discontinued operations, reflecting amounts for continuing operations only. Meanwhile, "profit", "profit attributable to owners of the parent", and "total comprehensive income" are presented as the total of continuing and discontinued operations. "Basic earnings per share" and "diluted earnings per share" are calculated based on "profit attributable to owners of the parent". Furthermore, "revenue", "profit from business activities", and "profit before income taxes" for the previous fiscal

      year ended March 31, 2025 consolidated accounting period have been restated in the same manner. Therefore, year-on-year percentage changes for these items are not presented.

   2. Consolidated financial position

      	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets	Equity attributable to owners of the parent per share
      As of	Millions of yen	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	8,269,711	3,228,400	3,088,566	37.3	919.16
      March 31, 2025	6,658,924	2,469,823	2,346,702	35.2	698.91

   3. Consolidated cash flow

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
      	Millions of yen	Millions of yen	Millions of yen	Millions of yen
      FY2025	942,619	(49,175)	(274,553)	1,334,874
      FY2024	530,459	(187,714)	(114,123)	657,816

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to equity attributable to owners of parent (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   FY2024	-	11.00	-	12.00	23.00	77,497	31.5	3.4
   FY2025	-	12.00	-	13.00	25.00	84,239	25.3	3.1
   FY2026 (Forecast)	-	14.00	-	15.00	29.00		25.6

3. Estimate of Consolidated Financial Results for FY 2026 ending March 31, 2027

(Percentages indicate year-on-year changes.)

• Notes

  1. Significant changes in the scope of consolidation during the period: None

  2. Changes in accounting policies and changes in accounting estimates

     1. Changes in accounting policies required by IFRS: None

     2. Changes in accounting policies due to other reasons: None

     3. Changes in accounting estimates: None

  3. The number of shares issued (Common Stock)

     1. Total number of shares issued at the end of the period (including treasury shares)

        As of March 31, 2026	3,373,647,810 shares
        As of March 31, 2025	3,373,647,810 shares

     2. Number of treasury shares at the end of the period

        As of March 31, 2026	13,438,470 shares
        As of March 31, 2025	15,980,024 shares

     3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

        FY2025	3,359,594,228 shares
        FY2024	3,360,292,439 shares

        [Reference] Overview of non-consolidated financial results for FY2025 ended March 31, 2026 (from April 1, 2025 to March 31,2026)

        1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

           	Net sales		Operating profit		Ordinary profit		Profit
           	Millions of yen	％	Millions of yen	％	Millions of yen	％	Millions of yen	％
           FY2025	2,396,273	23.1	239,426	65.0	293,462	56.7	227,759	90.0
           FY2024	1,947,178	12.6	145,072	97.2	187,257	55.7	119,855	(21.7)

           	Basic earnings per share	Diluted earnings per share
           	Yen	Yen
           FY2025	67.79	67.78
           FY2024	35.67	35.66

        2. Non-consolidated financial position

           	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
           As of	Millions of yen	Millions of yen	%	Yen
           March 31, 2026	5,106,612	1,355,393	26.5	403.27
           March 31, 2025	4,054,184	1,179,519	29.1	351.18

           [Reference] Equity As of March 31, 2026: ¥1,355,099 million

           As of March 31, 2025: ¥1,179,180 million

• The Japanese-language originals of this document are not subject to certified public accountants' or an audit firm's review

• Proper use of earnings forecasts, and other special matters Note regarding forward-looking statements:

Forecasts regarding future performance outlined in these materials are based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly from these projections due to a number of factors, including, but not limited to, economic trends affecting the Company's operating environment, fluctuations in the value of the Japanese yen to the U.S. dollar and other foreign currencies, and trends in Japan's stock markets. The results projected here should not be construed in any way as a guarantee by the Company.

How to obtain supplementary materials regarding the financial results:

Supplementary materials regarding the financial results are available on the Company's website.

Table of Contents for Attachments

1. Operating results and financial position …………………………………………………………………………………… 2

   1. Operating results 2

   2. Financial position 2

2. Basic Approach to Selection of Accounting Standards …………………………………………………………………… 3

3. Condensed Quarterly Consolidated Financial Statements and Major Notes ………………………………………………… 4

   1. Condensed Consolidated Statement of Financial Position …………………………………………………………… 4

   2. Condensed Consolidated Statement of Profit or Loss & Comprehensive Income …………………………………… 6

      (Condensed Consolidated Statement of Profit or Loss) ……………………………………………………………… 6

      (Condensed Consolidated Statement of Comprehensive Income) ………………………………………………… 7

   3. Condensed Consolidated Statement of Changes in Equity …………………………………………………………… 8

   4. Condensed Consolidated Statement of Cash Flows …………………………………………………………………… 9

   5. Going Concern Assumption ………………………………………………………………………………………… 11

   6. Segment Information ………………………………………………………………………………………………… 11

   7. Assets Held for Sale …………………………………………………………………………………………………… 13

   8. Discontinued Operations ……………………………………………………………………………………………… 14

   9. Earnings Per Share …………………………………………………………………………………………………… 15

   10. Material Subsequent Events ………………………………………………………………………………………… 15

   11. Others ………………………………………………………………………………………………………………… 15

4. FY2026 Earnings Forecast ………………………………………………………………………………………………… 16

1. Operating Results and Financial Position

   1. Operating Results

      • Economic conditions in FY2025 ended March 31, 2026

        In the fiscal year ended March 31, 2026 under review, the global economy continued to grow steadily on the whole, supported by an expansion in production and investment in the AI-related field, despite stagnation in China. The Japanese economy also maintained a moderate recovery trend, led by digital-related investment by companies and personal consumption. On the other hand, the outlook remained uncertain due to uncertainty surrounding U.S. trade policy and heightened geopolitical risks, including the situation in the Middle East.

      • Summary of consolidated financial results for FY2025 ended March 31, 2026

        Under the above mentioned circumstances, order intake of MHI Group (hereinafter referred to as "the Group") in the fiscal year ended March 31, 2026 under review increased by ¥1,248.4 billion year-on-year to ¥7,653.6 billion, mainly due to an increase in Energy Systems segment.

        Consolidated revenue increased mainly in Aircraft, Defense & Space segment and Energy Systems segment and totaled

        ¥4,974.1 billion, rising ¥613.0 billion year on year.

        Profit from business activities increased in all segments, including Energy Systems segment and Aircraft, Defense & Space segment, and amounted to ¥432.2 billion, up ¥77.2 billion year on year.

        Profit before income taxes increased ¥122.6 billion year on year to ¥474.6 billion, while profit attributable to owners of the parent came to ¥332.1 billion, up ¥86.6 billion from the fiscal year ended March 31, 2025.

        From the fiscal year ended March 31, 2026, the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.), a consolidated subsidiary of the Company, and its subsidiaries and affiliates, have been classified as discontinued operations. Accordingly, "order intake", "revenue", "profit from business activities", and "profit before income taxes" are presented excluding discontinued operations, reflecting amounts for continuing operations only.

        Meanwhile, "profit attributable to owners of the parent" is presented as the total of continuing and discontinued operations.

      • Estimate of consolidated financial results for FY 2026 ending March 31, 2027

        For fiscal 2026, we expect revenue of ¥5.4 trillion, profit from business activities of ¥540 billion, profit before income taxes of ¥530 billion and profit attributable to owners of the parent of ¥380 billion.

        *1 The exchange rates for undetermined foreign currencies are assumed to be ¥150 to the dollar and ¥180 to the euro.

        *2 Please refer to "4. FY2026 Earnings Forecast" for details.

        Note

        The above mentioned estimate regarding future performance is based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly from these projections due to a number of factors, including, but not limited to, economic trends affecting the Company's operating environment, fluctuations in the value of the Japanese yen to the U.S. dollar and other foreign currencies, and trends in Japan's stock markets. The results projected here should not be construed in any way as a guarantee by the Company.

   2. Financial Position

      • Assets, liabilities and equity

        Due to increases mainly in "Cash and cash equivalents" and "Contract assets", assets for the Group increased by ¥1,610.7 billion from the fiscal year ended March 31, 2025, to ¥8,269.7 billion in the fiscal year ended March 31, 2026 under review. Liabilities increased ¥852.2 billion from the end of the fiscal year ended March 31, 2025 to ¥5,041.3 billion, mainly due to an increase in "Contract liabilities" driven by higher order volume.

        Due to increases mainly in "Other components of equity" and "Retained earnings" resulting from higher comprehensive income attributable to owners of the parent and other items, total equity rose ¥758.5 billion from the end of the fiscal year ended March 31, 2025 to ¥3,228.4 billion.

      • Cash flow

        Net cash provided by operating activities totaled ¥942.6 billion, an increase of ¥412.1 billion over the fiscal year ended March 31, 2025. This was due primarily to higher Profit before income taxes and the acquisition of Contract liabilities resulting from expanded orders.

        Net cash used in investing activities came to ¥49.1 billion, a decrease of ¥138.5 billion over the previous fiscal year. This was due mainly to decreases in "Purchases of PPE, and intangible assets" and "Payments for derivative transactions".

        Free cash flow, which includes net cash provided by operating activities and net cash used in investing activities, came to

        ¥893.4 billion, an increase of ¥550.6 billion over the previous fiscal year.

        Net cash used in financing activities came to ¥274.5 billion, an increase of ¥160.4 billion over the previous fiscal year. This was due mainly to a decrease in "Proceeds from factoring agreements".

        As a result, cash and cash equivalents at the end of the fiscal year increased by ¥677.0 billion from the end of the previous fiscal year to ¥1,334.8 billion.

        Interest-bearing debt decreased to ¥515.7, which does not include interest-bearing debt of ¥35.7 billion related to the business operations of Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.), a consolidated subsidiary of the Company, and its subsidiaries and affiliates.

        Trends in the Group's cash flow indicators are as follows.

        	International Financial Reporting Standards (IFRS)
        	FY2021	FY2022	FY2023	FY2024	FY2025
        Ratio of equity attributable to owners of the parent to total assets (Equity ratio)	30.8%	31.8%	35.9%	35.2%	37.3%
        Ratio of equity attributable to owners of the parent to total assets at fair value (Equity ratio)	26.4%	29.9%	77.8%	127.5%	171.6%
        Debt redemption period (year)	2.6	9.2	2.2	1.2	0.6
        Interest coverage ratio	27.0	6.2	29.6	36.7	81.6

        • "Ratio of equity attributable to owners of the parent to total assets" is calculated by dividing equity attributable to owners of the parent by total capital.

        • "Equity ratio at fair value" is calculated by dividing market capitalization by total capital.

        • "Debt redemption period" is calculated by dividing interest-bearing debts by cash flows from operating activities.

        • "Interest coverage ratio" is calculated by dividing cash flows from operating activities by net interest expense.

        *1 All calculations are based on consolidated financial figures.

        *2 Cash flows are based on those from operating activities.

        *3 The balance of interest-bearing debts covers all liabilities on the balance sheet for which interest is paid.

2. Basic Approach to Selection of Accounting Standards

   Our group has adopted the International Financial Reporting Standards (IFRS) with the aim of improving the international comparability of financial information in the capital markets and improving group management by standardizing accounting methods.

3. Condensed Quarterly Consolidated Financial Statements and Major Notes

   1. Condensed Consolidated Statement of Financial Position

      (Millions of yen)

      	As of March 31, 2025	As of March 31, 2026
      Assets
      Current assets
      Cash and cash equivalents	657,816	1,334,874
      Trade and other receivables	984,684	1,108,557
      Other financial assets	41,959	56,836
      Contract assets	791,871	1,019,196
      Inventories	1,062,532	1,041,899
      Assets held for sale	3,718	548,409
      Other current assets	369,048	330,652
      Total current assets	3,911,632	5,440,426
      Non-current assets
      Property, plant and equipment ("PPE")	935,096	794,467
      Goodwill	172,947	106,394
      Intangible assets	87,269	77,471
      Right-of-use assets	86,996	62,849
      Investments accounted for using the equity method	295,172	326,932
      Other financial assets	470,907	489,341
      Deferred tax assets	259,942	84,810
      Other non-current assets	438,960	887,018
      Total Non-current assets	2,747,292	2,829,285
      Total assets	6,658,924	8,269,711

      (Millions of yen)

      	As of March 31, 2025	As of March 31, 2026
      Liabilities and Equity
      Current liabilities
      Bonds, borrowings and other financial liabilities	280,528	255,067
      Trade and other payables	930,281	1,000,863
      Income taxes payable	25,282	86,557
      Contract liabilities	1,443,983	2,161,881
      Provisions	229,032	244,851
      Liabilities directly associated with assets held for sale	-	281,931
      Other current liabilities	237,191	230,058
      Total Current liabilities	3,146,299	4,261,212
      Non-current liabilities
      Bonds, borrowings and other financial liabilities	850,746	621,173
      Deferred tax liabilities	9,594	11,099
      Retirement benefit liabilities	72,042	56,701
      Provisions	72,102	54,905
      Other non-current liabilities	38,315	36,218
      Total non-current liabilities	1,042,801	780,098
      Total liabilities	4,189,101	5,041,310
      Equity
      Share capital	265,608	265,608
      Capital surplus	44,742	48,274
      Treasury shares	△16,452	△12,915
      Retained earnings	1,588,643	1,880,339
      Other components of equity	464,159	907,258
      Equity attributable to owners of the parent	2,346,702	3,088,566
      Non-controlling interests	123,121	139,834
      Total Equity	2,469,823	3,228,400
      Total Liabilities and Equity	6,658,924	8,269,711

   2. Condensed Consolidated Statement of Profit or Loss & Comprehensive Income

      Condensed Consolidated Statement of Profit or Loss (Millions of yen)

      	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
      Continuing operations Revenue Cost of sales Gross Profit Selling, general and administrative expenses Share of profit of investments accounted for using the equity method Other income Other expenses Profit from business activities Finance income Finance costs Profit before income taxes Income taxes Profit from continuing operations	4,361,127 3,490,008 871,119 584,085 (2,607) 91,967 21,427 354,965 12,779 15,672 352,073 106,409 245,663	4,974,168 3,891,494 1,082,674 632,810 16,690 35,619 69,954 432,218 59,460 16,984 474,694 116,306 358,387
      Discontinued operations Profit (loss) from discontinued operations	16,333	(12,445)
      Profit	261,997	345,942
      Profit attributable to: Owners of the parent Non-controlling interests	245,447 16,549	332,129 13,812

      (yen)

      Earnings per share attributable to owners of the parent
      Basic earnings (loss) per share	73.04	98.86
      Continuing operations	69.95	104.68
      Discontinued operations	3.10	(5.82)
      Diluted earnings (loss) per share	73.02	98.84
      Continuing operations	69.93	104.66
      Discontinued operations	3.10	(5.82)

      Condensed Consolidated Statement of Comprehensive Income (Millions of yen)

      	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
      Profit	261,997	345,942
      Other comprehensive income
      Items that will not be reclassified to profit or loss
      Net gains from financial assets measured at FVTOCI	(42,506)	80,464
      Remeasurement of defined benefit plans	(8,581)	291,168
      Share of other comprehensive income of entities accounted for using the equity method	872	1,345
      Total	(50,215)	372,978
      Items that may be reclassified to profit or loss
      Cash flow hedges	1,100	(3,670)
      Exchange differences on translating foreign operations	(10,660)	104,290
      Share of other comprehensive income of entities accounted for using the equity method	991	19,402
      Total	(8,568)	120,022
      Total other comprehensive income	(58,784)	493,000
      Comprehensive income	203,213	838,943
      Comprehensive income attributable to
      Owners of the parent	186,470	815,370
      Non-controlling interests	16,742	23,572

   3. Condensed Consolidated Statement of Changes in Equity

      (Millions of yen)

      	Equity attributable to owners of the parent						Non-controlling interests	Total Equity
      	Share capital	Capital surplus	Treasury shares	Retained earnings	Other components of equity	Total
      Balance as of Apr. 1, 2024	265,608	41,187	(4,828)	1,433,267	509,385	2,244,620	116,034	2,360,654
      Profit				245,447		245,447	16,549	261,997
      Other comprehensive income					(58,977)	(58,977)	193	(58,784)
      Comprehensive income	-	-	-	245,447	(58,977)	186,470	16,742	203,213
      Transfer to retained earnings				(13,742)	13,742	-		-
      Purchase of treasury shares			(12,174)			(12,174)		(12,174)
      Disposal of treasury shares		20	50			71		71
      Dividends				(77,321)		(77,321)	(7,943)	(85,264)
      Others		3,533	500	993	8	5,035	(1,711)	3,323
      Total transactions with owners	-	3,554	(11,623)	(76,328)	8	(84,388)	(9,655)	(94,044)
      Balance as of Mar. 31, 2025	265,608	44,742	(16,452)	1,588,643	464,159	2,346,702	123,121	2,469,823
      Profit				332,129		332,129	13,812	345,942
      Other comprehensive income					483,240	483,240	9,760	493,000
      Comprehensive income	-	-	-	332,129	483,240	815,370	23,572	838,943
      Transfer to retained earnings				40,137	(40,137)	-		-
      Purchase of treasury shares			(6)			(6)		(6)
      Disposal of treasury shares		11	33			44		44
      Dividends				(80,615)		(80,615)	(7,755)	(88,371)
      Others		3,520	3,510	43	(3)	7,070	895	7,966
      Total transactions with owners	-	3,531	3,537	(80,571)	(3)	(73,506)	(6,860)	(80,366)
      Balance as of Mar. 31, 2026	265,608	48,274	(12,915)	1,880,339	907,258	3,088,566	139,834	3,228,400

   4. Condensed Consolidated Statement of Cash Flows

      (Millions of yen)

      	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
      Cash flows from operating activities
      Profit before income taxes	352,073	474,694
      Profit (loss) before income taxes from discontinued operations	22,458	(5,550)
      Depreciation, amortization and impairment loss	160,643	211,214
      Finance income and costs	6,623	(73,730)
      Share of loss (profit) of investments accounted for using the equity method	2,754	(16,717)
      Loss (gain) on sale of PPE and intangible assets	(70,510)	(8,690)
      Loss on disposal of PPE and intangible assets	10,399	9,625
      Decrease (increase) in trade receivables	(29,668)	(201,178)
      Decrease (increase) in contract assets	(56,725)	(208,901)
      Decrease (increase) in inventories and advanced payments	(147,467)	(37,675)
      Increase (decrease) in trade payables	13,481	107,671
      Increase (decrease) in contract liabilities	361,023	663,533
      Increase (decrease) in provisions	8,094	3,274
      Increase (decrease) in retirement benefit liabilities	17,821	33,258
      Others	(26,260)	8,556
      Subtotal	624,739	959,382
      Interest received	10,804	14,010
      Dividends received	15,796	25,769
      Interest paid	(14,457)	(11,546)
      Income taxes paid	(106,424)	(44,997)
      Net cash provided by operating activities	530,459	942,619

      (Millions of yen)

      	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
      Cash flows from investing activities
      Payments into fixed-term deposits	(26,780)	(23,526)
      Proceeds from withdrawal of fixed-term deposits	24,825	23,826
      Purchases of PPE, and intangible assets	(240,692)	(181,064)
      Proceeds from sales of PPE, and intangible assets	76,474	14,612
      Purchases of investments (including investments accounted for using the equity method)	(63,885)	(7,493)
      Proceeds from sales and redemption of investments (including investments accounted for using the equity method)	58,672	101,609
      Proceeds from sale of businesses (including subsidiaries)	-	4,894
      Payments for sale of businesses (including subsidiaries)	(1,475)	-
      Payments for acquisition of businesses (including subsidiaries)	(1,509)	(27,054)
      Net decrease (increase) in short-term loans	519	(348)
      Disbursement of long-term loans	(15,675)	(353)
      Collection of long-term loans	121	312
      Payments for derivative transactions	(100,520)	(43,649)
      Proceeds from derivative transactions	108,484	98,972
      Others	(6,273)	(9,912)
      Net cash provided by (used in) investing activities	(187,714)	(49,175)
      Cash flows from financing activities
      Net increase (decrease) in short-term borrowings	(9,389)	(16,162)
      Proceeds from long-term borrowings	9,012	1,000
      Repayment of long-term borrowings	(76,629)	(66,546)
      Proceeds from issuance of bonds	30,000	10,000
      Payment for redemption of bonds	(30,000)	(35,000)
      Payments for acquisition of interests in subsidiaries from non-controlling interests	(1,806)	-
      Dividends paid to owners of the parent	(77,165)	(80,481)
      Dividends paid to non-controlling interests	(7,659)	(7,796)
      Payments for purchase of treasury shares	(12,366)	(184)
      Proceeds from factoring agreements	283,678	85,243
      Repayment of liabilities under factoring agreements	(192,643)	(135,557)
      Repayment of lease liabilities	(27,834)	(27,855)
      Others	(1,318)	(1,212)
      Net cash provided by (used in) financing activities	(114,123)	(274,553)
      Effect of exchange rate changes on cash and cash equivalents	(2,091)	79,518
      Net increase (decrease) in cash and cash equivalents	226,529	698,407
      Cash and cash equivalents at the beginning of the year	431,287	657,816
      Cash and cash equivalents included in assets held for sale	-	(21,350)
      Cash and cash equivalents at the end of the period	657,816	1,334,874

   5. Going Concern Assumption Not applicable

   6. Segment Information

      1. Overview of reporting segments

         The reporting segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed by MHI's Board of Directors to make decisions about resource allocation and assess their performance.

         The Group manages its businesses by business domains and segments. Each business domain and segment engages in its business activities by formulating comprehensive strategies on products and services which are provided in both domestic and overseas markets. Therefore, MHI aggregates its business domain segments into four reportable segments, "Energy Systems", "Plants & Infrastructure Systems", "Logistics, Thermal & Drive Systems", and "Aircraft, Defense & Space", by considering similarities of each business domain's and segment's customers and product characteristics.

         Main products and services belonging to each reporting segment are as follows:

         Energy Systems	Thermal power systems (GTCC* and Steam power), Nuclear power systems (Light-water reactors, Nuclear fuel cycle & Advanced solutions), Wind power systems, Aero engines, Compressors, Marine machinery * Gas turbine combined cycle
         Plants & Infrastructure Systems	Metal machinery, Commercial ships, Engineering (Transportation systems, Chemical plants), Environmental systems, Machinery systems (paper converting machinery, ITS*, Test equipment) * Intelligent Transport Systems
         Logistics, Thermal & Drive Systems	Air-conditioning & refrigeration systems, Engines, Turbochargers, Automotive thermal systems
         Aircraft, Defense & Space	Commercial aviation, Defense aircraft, Missile systems, Naval ships, Maritime systems (Torpedoes), Special vehicles (Tanks), Space systems

         The Group has classified the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.) and its subsidiaries and affiliates, which was included in "Logistics, Refrigeration and Drive Systems" as discontinued operations for FY2025, and has deducted it from the amounts for FY2024 and FY2025. Accordingly, the segment information for FY2024 has been restated.

      2. Information about revenue, profit or loss and other items by reporting segment For FY2024 (From April 1, 2024 to March 31, 2025)

      (Millions of yen)

      	Reporting segment					Others *1	Total	Corporate & Eliminations *2	Consolidated
      	Energy Systems	Plants & Infrastructure Systems	Logistics, Thermal & Drive Systems	Aircraft, Defense & Space	Total
      Revenue
      Revenue from external customers Inter-segment revenue and transfers	1,803,878 11,918	806,177 45,935	636,609 4,426	1,029,291 1,354	4,275,957 63,634	73,215 1,259	4,349,172 64,893	11,955 (64,893)	4,361,127 -
      Total	1,815,796	852,112	641,035	1,030,646	4,339,591	74,474	4,414,065	(52,938)	4,361,127
      Segment profit *3	205,356	59,634	20,480	99,984	385,455	30,002	415,457	(60,491)	354,965
      Finance income									12,779
      Finance costs									15,672
      Profit before income taxes									352,073

      For FY2025 (From April 1, 2025 to March 31, 2026)

      (Millions of yen)

      	Reporting segments					Others *1	Total	Corporate & Eliminations *2	Consolidated
      	Energy Systems	Plants & Infrastructure Systems	Logistics, Thermal & Drive Systems	Aircraft, Defense & Space	Total
      Revenue
      Revenue from external customers Inter-segment revenue and transfers	2,053,956 8,644	814,757 66,135	624,860 5,966	1,392,898 960	4,886,472 81,707	74,467 1,527	4,960,939 83,234	13,228 (83,234)	4,974,168 -
      Total	2,062,600	880,893	630,826	1,393,858	4,968,179	75,994	5,044,174	(70,005)	4,974,168
      Segment profit *3	267,272	84,106	33,066	151,505	535,950	(26,810)	509,140	(76,921)	432,218
      Finance income									59,460
      Finance costs									16,984
      Profit before income taxes									474,694

      *1 "Others" includes the businesses categorized in growth areas such as data center & energy management and asset businesses, which are not included in the reporting segments.

      *2 "Corporate & Eliminations" includes revenues and expenses which are not included in any of the reporting segments.

      Specifically, corporate research and development expenses and dividends on shares concerning corporate overall businesses, neither of which are linked to any specific segment.

      *3 Segment profit represents profit from business activities.

   7. Assets Held for Sale

      Assets held for sale and liabilities directly associated with assets held for sale are comprised of the following.

      1. Assets held for sale

         (Millions of yen)

         	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
         Cash and cash equivalents	-	21,350
         Trade and other receivables	-	113,043
         Contract assets	-	1,261
         Inventories	-	109,256
         Property, plant and equipment ("PPE")	3,718	196,356
         Goodwill	-	27,186
         Intangible assets	-	16,673
         Right-of-use assets	-	28,567
         Investments accounted for using the equity method	-	1,439
         Other financial assets	-	10,767
         Deferred tax assets	-	7,998
         Other assets	-	14,509
         Total	3,718	548,409

      2. Liabilities directly associated with assets held for sale

      (Millions of yen)

      	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
      Bonds, borrowings and other financial liabilities	-	129,843
      Trade and other payables	-	70,500
      Income taxes payable	-	2,011
      Contract liabilities	-	11,759
      Retirement benefit liabilities	-	12,655
      Provisions	-	10,010
      Deferred tax liabilities	-	1,831
      Other current liabilities	-	43,318
      Total	-	281,931

      Assets held for sale in FY2024 were mainly property, plant and equipment expected to be sold within one year. Assets held for sale and associated liabilities in FY2025 were mainly related to the business of Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.) and its subsidiaries and affiliates.

      The disposal group classified as held for sale in FY2025 is measured at fair value less costs to sell because the fair value less costs to sell is lower than the carrying amount. Fair value is calculated based on the share price at the end of FY2025.

      Accumulated other comprehensive income related to the relevant business (mainly foreign currency translation differences of

      overseas operations) of ¥26,968 million is included in "Other components of equity" in the consolidated statement of financial position at the end of FY2025.

   8. Discontinued Operations

      The Company, at the meeting of its board of directors held on September 30, 2025, resolved to enter into the basic transaction agreement concerning the following matters with LVJ Holdings 2 LLC (the "Tender Offeror"), which is wholly owned by JIP Fund VI, for which all the issued shares are held by Japan Industrial Partners, Inc. and the agreement was executed on the same day:

      1. A non-participation in a tender offer by the Tender Offeror for the Mitsubishi Logisnext shares and stock options.

      2. A share consolidation to be conducted by Mitsubishi Logisnext in order to make the Tender Offeror and the Company the only shareholders of Mitsubishi Logisnext if the Tender Offeror is unable to acquire all the Mitsubishi Logisnext shares and stock options through the Tender Offer

      3. Subject to the effectiveness of the share consolidation, a provision of funds to Mitsubishi Logisnext by the Tender Offeror and a reduction in Mitsubishi Logisnext's capital stock, capital reserves and retained earnings reserves based on Article 447, Paragraph 1 and Article 448, Paragraph 1 of the Companies Act for the purpose of securing the funds and distributable amount for Mitsubishi Logisnext to acquire the Mitsubishi Logisnext shares held by the Company (the

         "Non-Tendered Shares")

      4. A share repurchase by Mitsubishi Logisnext of the Non-Tendered Shares, and a series of transactions for the purposes of taking Mitsubishi Logisnext private through (a) to (d)

      5. The Company to underwrite Class B Preferred Shares and Class D Type Shares issued by the Tender Offeror following the effectiveness of the share repurchase

      Through the transaction, Mitsubishi Logisnext shall cease to be a consolidated subsidiary of the Company. Therefore, the businesses related to Mitsubishi Logisnext Co., Ltd. and its subsidiaries and affiliates are classified as discontinued operations in FY2025. The completion of this transaction was completed on May 1, 2026.

      1. Profit or loss from discontinued operations

         (Millions of yen)

         	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
         Revenue	674,181	643,558
         Expenses	651,723	649,109
         Profit (loss) before income taxes from discontinued operations	22,458	(5,550)
         Income taxes	6,124	6,894
         Profit (loss) from discontinued operations	16,333	(12,445)

         Expenses for FY2025 include a write-down of ¥32,117 million resulting from measuring the disposal group constituting discontinued operations at fair value less costs to sell.

      2. Cash flows from discontinued operations

      (Millions of yen)

      	FY2024 (From Apr. 1, 2024 to Mar. 31, 2025)	FY2025 (From Apr. 1, 2025 to Mar. 31, 2026)
      Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities	42,105 (34,260) (7,714)	49,979 (38,704) (5,355)
      Total	131	5,919

   9. Earnings Per Share

      Equity attributable to owners of parent per share: ¥919.16 Basic earnings per share: ¥98.86

   10. Material Subsequent Events

       As described in "(8) Discontinued Operations," the Company entered into the basic transaction agreement on September 30, 2025 in order to take Mitsubishi Logisnext Co., Ltd. private and subsequently proceeded with the procedures for a tender offer. These procedures were completed on May 1, 2026. The impact of the completion of the transaction on the Company's consolidated financial results for the fiscal year ending March 31, 2027 is expected to be minimal.

   11. Others

       Major Lawsuits

       There was a temporary dispute between a consortium composed of MHI and Daewoo Engineering & Construction Co., Ltd. ("MHI and Daewoo") and El Sharika El-Djazairia El-Omania Lil Asmida SPA ("AOA") regarding a chemical fertilizer plant construction contract in Algeria whose orders had been received by MHI and Daewoo, but a settlement was reached in 2017 (the "Settlement Agreement"), and the consortium delivered the plant to AOA. However, AOA subsequently refused to make some of the outstanding payment under the Settlement Agreement. Therefore, MHI and Daewoo filed for arbitration against AOA and one of its shareholders, Societe Nationale pour la Recherche, la Production, le Transport, la Transformation et la Commercialisation des Hydrocarbures SPA ("SONATRACH").

       In March 2021, MHI and Daewoo received a counterclaim from AOA which mainly consists of the cancellation of the Settlement Agreement and the refund of the payment already made under the Settlement Agreement.

       In October 2022, the arbitral tribunal decided to exclude SONATRACH from participants of arbitration.

       MHI and Daewoo will assert that there are no reasonable grounds for AOA's refusal to make the outstanding payment and that the counterclaim should be dismissed.

4. FY2026 Earnings Forecast

(Billions of yen)

(Billions of yen)

(Billions of yen)

• Please refer to page 2 for the assumptions of the above forecasts and other related matters.

• "Profit from business activities" is calculated by subtracting "cost of sales", "selling, general and administrative expenses" and "other expenses" from "revenue" and adding "share of profit of investments accounted for using the equity method" and "other income" to the resulting amount. "Other income" and "other expenses" consist of dividend income, gains or losses on sales of fixed assets, impairment losses on fixed assets, and others.

  Capital Expenditures

  (Billions of yen)

  Capital Expenditures

  210.0

• Capital expenditures are newly recorded non-current assets (recorded in construction in progress).

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