Mitsui Es Holdings Co., Ltd. TSE:7003
MITSUI E&S : Consolidated Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2026 (Presentation Material)
Source: MarketScreener
Consolidated Financial Results
for 3rd Quarter of Fiscal Year Ending March 31, 2026
February 10, 2026
Note: This document has been translated from Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Highlights
※ ・Sales and operating income continued to grow, resulting in higher sales and earnings.
New Orders
207.6 Billion yen
（ YoY
）
・Based on the strong third-quarter performance, we have revised our operating income forecast for the fiscal year ending March 2026 upward.
3rd Quarter of FYE Mar. 2026
Results
Net Sales | 253.2 Billion yen | （ YoY | ） |
Operating Income | 31.1 Billion yen | （ YoY | ） |
FYE Mar. 2026
Forecast
| 300 Billion yen (compared to Nov. 12, 2025 | ) |
| 340 Billion yen (compared to Nov. 12, 2025 | ) |
| 35 Billion yen (compared to Nov. 12, 2025 | ) |
Establishment of the "Port Digital Transformation Dept" Plan to Increase Production Capacity of
Ammonia-Fueled Propulsion System
Establish a Restricted Stock Incentive Plan for
Employee Shareholding Association
R&I Assigns New A-[Positive] Rating to MITSUI E&S Co., Ltd.
Topics
Summary of Results
※ ・ Sales and operating income improved significantly, driven by a large order backlog.
・Net income declined YoY due to the gain on the sale of shares in affiliated
companies recorded in the previous year.
(JPY: Billion)
FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | Var. | |
New Orders | 257.4 | 207.6 | (49.8) |
Net Sales | 218.7 | 253.2 | +34.4 |
Operating Income | 13.8 | 31.1 | +17.4 |
margin | 6.3% | 12.3% | - |
Ordinary Income | 19.3 | 36.0 | +16.7 |
margin | 8.8% | 14.2% | - |
Profit attributable to owners of parent | 35.2 | 25.4 | (9.8) |
＜Average FX＞
FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | |
USD/JPY | 151.21 Yen | 152.57 Yen |
Results Summary by Segment
※ ・Orders decreased YoY due to the strong performance of the previous year, but they have progressed in line with the initial plan. However, revenue increased owing to steady progress on the existing order backlog.
・Operating income doubled, driven mainly by the Marine Propulsion Systems and Logistics
Systems segments.
（JPY: Billion）
New Orders | Net Sales | Operating Income | |||||||
FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | Var. | FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | Var. | FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | Var. | |
New Business Development | 34.4 | 33.7 | (0.7) | 27.0 | 30.5 | +3.5 | 4.1 | 5.6 | +1.4 |
Marine Propulsion Systems | 115.0 | 75.6 | (39.4) | 98.8 | 109.7 | +10.9 | 6.2 | 13.2 | +7.0 |
Logistics Systems | 59.1 | 45.8 | (13.3) | 41.3 | 45.6 | +4.3 | 4.1 | 10.1 | +6.0 |
Peripheral Businesses | 48.8 | 52.4 | +3.6 | 50.2 | 67.3 | +17.1 | (0.8) | 2.5 | +3.3 |
Others | 0.1 | 0.1 | 0 | 1.6 | 0.1 | (1.4) | 0.1 | (0.3) | (0.3) |
Total | 257.4 | 207.6 | (49.8) | 218.7 | 253.2 | +34.4 | 13.8 | 31.1 | +17.4 |
Summary of Cash Flow
※ Improvement in operating cash flow driven by profit generation and the collection of accounts receivable related to container cranes.
（JPY：Billion）
FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | Var. | ||
Operating CF | 8.4 | 33.1 | +24.7 | In the FYE Mar. 2026 3Q, the company posted a positive cash flow of 33.1 billion yen, driven by operating profit and progress in collecting accounts receivable related to container cranes. |
Investing CF | 62.9 | 1.1 | (61.8) | The 62.9 billion yen recorded in the FYE Mar. 2025 3Q was mainly attributed to a cash-in from the sale of shares in an affiliated company. |
Free CF | 71.3 | 34.2 | (37.1) | |
Financial CF | (67.9) | (18.9) | +49.0 | In the FYE Mar. 2025 3Q, the company significantly reduced short-term borrowings, primarily utilizing cash generated from the above-mentioned share sale. |
Summary of FYE Mar. 2026 Forecast
※ ・As the New Business Development segment, the Marine Propulsion Systems segment, and the Logistics Systems segment have been performing strongly, we have revised our operating profit forecast upward.
・The annual dividend has been increased to 50 yen per share
(Initial Forecast : 30 yen).
（JPY: Billion）
Previous Forecast （Nov. 12, 2025） | Revised Forecast （Feb. 10, 2026） | Var. | |
New Orders | 300.0 | 300.0 | 0 |
Net Sales | 340.0 | 340.0 | 0 |
Operating Income | 30.0 | 35.0 | +5.0 |
Ordinary Income | 31.0 | 40.0 | +9.0 |
Profit attributable to owners | 26.0 | 31.0 | +5.0 |
Free CF | 11.0 | 11.0 | 0 |
Debt with interest | 95.0 | 95.0 | 0 |
Annual Dividends per Share | TBD （Initial Forecast：30 Yen） | 50 Yen | +20 Yen （vs. Initial Forecast） |
※ Exchange rate assumption: USD/JPY:150
※ The USD/JPY exchange rate fluctuation has almost no impact on Operating Income.
Summary of FYE Mar. 2026 Forecast by Segment
※ The full-year operating income forecast has been revised upward, driven by the strong performance of the Marine Propulsion Systems and Logistics Systems segments.
（JPY：Billion）
New Orders | Net Sales | Operating Income | |||||||
Previous Forecast Nov. 12, 2025 | Revised Forecast Feb. 10, 2026 | Var. | Previous Forecast Nov. 12, 2025 | Revised Forecast Feb. 10, 2026 | Var. | Previous Forecast Nov. 12, 2025 | Revised Forecast Feb. 10, 2026 | Var. | |
New Business Development | 50.0 | 50.0 | 0 | 40.0 | 40.0 | 0 | 6.0 | 6.5 | +0.5 |
Marine Propulsion Systems | 120.0 | 120.0 | 0 | 150.0 | 150.0 | 0 | 12.0 | 14.5 | +2.5 |
Logistics Systems | 60.0 | 60.0 | 0 | 65.0 | 65.0 | 0 | 9.0 | 12.0 | +3.0 |
Peripheral Businesses | 70.0 | 70.0 | 0 | 85.0 | 85.0 | 0 | 3.0 | 2.0 | (1.0) |
Others | 0.0 | 0.0 | 0 | 0.0 | 0.0 | 0 | 0.0 | 0.0 | 0 |
Total | 300.0 | 300.0 | 0 | 340.0 | 340.0 | 0 | 30.0 | 35.0 | +5.0 |
FYE Mar. 2026 Forecast Progress
※ Orders and sales were generally in line with the plan, while operating income has been revised upward.
0 50 100 150 200 250 300 350 400 450 （JPY: Billion）
New Orders
FYE Mar.
207.6
Progress : 69%
300.0
257.4
Progress : 61%
421.7
FYE Mar. 2026 3Q :
The Logistics Systems segment and the Peripheral Businesses segment progressed as planned, supported by orders for large overseas projects.
Although the Marine Propulsion Systems segment showed a low progress rate, demand for marine engines remains strong, and therefore the
full-year forecast remains unchanged.
2026
FYE Mar.
2025
Net Sales
FYE Mar.
253.2
Progress : 74%
340.0
218.7
Progress : 69%
315.1
2026
FYE Mar.
2025
0 50 100 150 200 250 300 350 （JPY: Billion）
Operating Income
FYE Mar. 2026 3Q :
Overall progress was steady, supported by the smooth delivery of previously received orders in the Marine Propulsion Systems segment and the progress of large overseas projects in the Peripheral Businesses segment.
FYE Mar.
2026
FYE Mar.
2025
0 5 10 15 20 25 30 35 40 （JPY: Billion）
31.1
35.0
30
Progress : 89%
Revised Upward
13.8
Progress : 60%
23.1
FYE Mar. 2026 3Q :
The full-year forecast has been revised upward, reflecting strong performance in the New Business Development segment-particularly in the
after-sales service business-as well as solid progress in both the Marine Propulsion Systems and Logistics Systems segments.
3rd Quarter Full FY
Establishment of the "Port Digital Transformation Dept"
※ To accelerate DX (Digital Transformation) at container terminals, a new "Port Digital Transformation Dept " will be established within the Logistics Systems Div.
By integrating digital technologies and AI technologies with our existing technologies-hardware (Portainer/Transtainer) and the Terminal Operation System (TOS)-we aim to realize the next generation of container terminals.
9
Toward safe, human-supportive, and sustainable container terminals
Hardware
TOS
Technology
Cargo Handling Equipment
CTMS
AI/Digital
Hardware × TOS × AI・Digital
We will create a structure to promote the digitalization and advancement of port operations, and generate new value in the port and logistics sectors.
Plan to Increase Production Capacity of
Ammonia-Fueled Propulsion System
※"Plan to Increase Production Capacity of Ammonia-Fueled Propulsion System" is selected under
"Zero Emission Ship Construction Promotion Project"
"Zero Emission Ship Construction Promotion Project"
This project aims to establish a domestic production system for zero-emission ships, thereby strengthening industrial competitiveness and driving economic growth.
In addition to the dual-fuel engines already in production, which utilize LNG, LPG, and methanol, we will accelerate the production of dual-fuel engines (and fuel supply systems) that use ammonia through upfront investments enabled by this project.
10
By strengthening the production framework for marine engines, we will contribute to expanding the global share of ships built in Japan
and to the growth of the shipping industry.
Furthermore, Japan's marine industry aims to double shipbuilding capacity by 2035, and as a leading manufacturer of marine engines, our company will fulfill its supply responsibilities to help achieve this objective.
Dual-fuel engines | FYE Mar. 2025 | FYE Mar. 2031－FYE Mar. 2041 |
Fuel Lineup | LNG, LPG, Methanol, etc | LNG, LPG, Methanol, etc ＋ Ammonia |
Establish a Restricted Stock Incentive Plan for
Employee Shareholding Association
※ The Company will grant ESOP-type restricted stock to the Employee Shareholding
Association as equity compensation for employees.
Stock market
Stock purchase
RS Grant (treasury shares)
Employee Shareholding Association
contribution
Regular Shares
RS ownership
Employees
The Company
【Purpose】
To invest in human capital (motivation and talent retention)
【Outline of the Plan】
The Company shall provide monetary claims of 50,000 yen to each applicable employee through the Shareholding Association.
The shares may be sold after a five-year transfer
restriction period.
【Expected Effects】
By strengthening the sense of unity between management and employees through the Shareholding Association, the Company can accelerate business growth and enhance corporate value.
(The impact on the market will be still minor taking into account the dilution.)
※Please visit our website for further details.
（https://www.mes.co.jp/news/2026/0210_02/）
We establish the Plan for the purpose of providing the applicable employees with incentives to achieve sustainable improvement of the Company's corporate value.
R&I Assigns New A-[Positive] Rating to MITSUI E&S Co., Ltd.
※ Rating and Investment Information, Inc. (R&I) Assigns New A-[Positive] Rating to MITSUI E&S Co., Ltd.
New Rating | |
Issuer Rating | A－ |
Rating Outlook | Positive |
Date：December 24, 2025
＜RATIONALE＞
・The company's core businesses include marine engines and port cranes, along with a wide range of industrial equipment.
・Many of its products hold strong market positions in Japan.
・Certain effects from the diversification of earnings sources are expected, and the company's overall earnings base is solid.
・Supported by robust demand, the company has raised its profit level, achieving a relatively strong earning capacity.
・The balance between debt and cash flow and the debt-equity structure are approaching favorable levels.
By steadily generating profits and cash flow in response to robust demand, we continue to strengthen our financial base,
aiming for further rating upgrades.
Appendix）Summary of Income Statement
※ ・Sale of large assets such as shares in affiliated companies had been completed.
・The profit structure centered on core business, with little impact from
extraordinary income and losses.
（JPY: Billion）
FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | Var. | ||
Net sales | 218.7 | 253.2 | +34.4 | |
Gross profit | 34.3 | 54.0 | +19.6 | |
Selling, general and administrative expenses | 20.6 | 22.8 | +2.2 | |
Operating income | 13.8 | 31.1 | +17.4 | |
Non-operating income | 8.4 | 7.2 | (1.2) | Decrease in equity in earnings mainly due to the sale of shares in affiliated companies |
Non-operating expenses | 2.9 | 2.4 | (0.5) | |
Ordinary income | 19.3 | 36.0 | +16.7 | |
Extraordinary income | 24.2 | 0.3 | (23.9) | The 24.2 billion yen in the FYE Mar. 2025 3Q is mainly due to gains on the sale of shares in affiliated companies |
Extraordinary losses | 4.4 | 2.5 | (1.9) | |
Profit before income taxes | 39.1 | 33.7 | (5.4) | |
Income taxes | 3.9 | 8.0 | +4.1 | The increase in the FYE Mar. 2026 3Q is mainly due to the reversal of deferred tax liabilities in the FYE Mar. 2025 3Q |
Profit attributable to non-controlling interests | 0 | 0.3 | +0.3 | |
Profit attributable to owners of parent | 35.2 | 25.4 | (9.8) |
Appendix） Summary of Balance Sheet
※ ・Steady net income led to an improvement in equity ratio.
・Working capital improved due to the collection of accounts receivable.（JPY：Billion）
FYE Mar. 2025 | FYE Mar. 2026 3Q | Var. | |||
Total assets | 449.2 | 475.2 | +26.0 | ||
（Cash and time deposits） | 35.4 | 50.8 | +15.4 | ||
（Notes and accounts receivables - trade, and contract assets etc.） | 107.9 | 93.6 | (14.3) | Decrease mainly due to a collection of accounts receivable for container cranes | |
（Inventory） | 69.9 | 81.5 | +11.6 | Increase in work-in-process inventories mainly in the ongoing marine engine projects | |
（Fixed Assets） | 130.3 | 127.8 | (2.5) | ||
(Investment securities) | 29.7 | 46.8 | +17.1 | Increase associated with the rise in stock price | |
Total liabilities | 275.1 | 266.1 | (8.9) | ||
（Trade payables etc.） | 59.1 | 61.1 | +2.0 | ||
（Contract liabilities） | 44.2 | 48.6 | +4.4 | ||
（Debt with interest） | 97.8 | 83.7 | (14.2) | Decrease due to the repayment of short-term and long-term borrowings | |
Short-term borrowings | 54.0 | 43.3 | (10.7) | ||
Long-term borrowings | 43.8 | 40.4 | (3.4) | ||
Total net assets | 174.2 | 209.1 | +34.9 | ||
（Equity） | 169.8 | 204.5 | +34.7 | Increase mainly due to the accumulation of retained earnings | |
（Equity capital ratio） | 37.8% | 43.0% | - | ||
Working capital (*) | 70.1 | 60.4 | (9.7) | Decrease mainly due to a collection of accounts receivable |
D/E ratio | 0.6 | 0.4 | - |
(*) Trade receivables(except Advances from customers) + Inventory - Trade payables
Appendix） Marine Engines
※ While retaining a substantial order backlog, we steadily increased our production output.
FYE Mar. 2025 3Q Cumulative Total | FYE Mar. 2026 3Q Cumulative Total | FYE Mar. 2026 Forecast | ||||
Unit | Horse Power (10Kps) | Unit | Horse Power (10Kps) | Unit | Horse Power (10Kps) | |
New Orders | 81 | 233 | 49 | 108 | ー | ー |
Deliveries | 108 | 219 | 96 | 215 | ー | ー |
Back logs | 93 | 245 | 107 | 310 | ー | ー |
Production | 99 | 200 | 109 | 237 | 146 | 316 |
In this document, performance forecasts, targets, plans, strategies, etc. of the Company in regard to the future contain forward-looking statements. These are forecasts that the Company reasonably determined based on information available at the present time and include both known and unknown risks and uncertainties. Accordingly, actual results or developments of our company in the future could differ significantly.