Data center-driven gas turbine demand and solid defense orders lifted the forecast, while net profit guidance stayed at ¥380 billion, below the IBES average estimate of ¥418.8 billion.
Mitsubishi Heavy Industries, Ltd. lifted its orders outlook for the fiscal year ending March 2027 to ¥7 trillion (approximately $44.4 billion) from ¥6.8 trillion (approximately $43.1 billion), citing stronger demand in power generation gas turbines and defense. The company expects to add ¥100 billion (approximately $634.1 million) from each of those businesses, with gas turbine orders expanding as data center construction accelerates alongside the spread of generative AI. Defense demand was described as solid both in Japan and overseas. Despite the higher orders target, the company left its consolidated earnings forecast under International Financial Reporting Standards unchanged, still planning for net profit of ¥380 billion (approximately $2.4 billion). CFO Hiroshi Nishio said, "Given the pace of improvement in the first quarter, I think we can expect some upside for the full year as well," signaling room for a possible upward revision later. The assumed exchange rate also remained unchanged at ¥150 to the dollar. Separately, April-June 2026 consolidated results reached record highs for revenue and all profit lines, with net profit rising 97.4% from a year earlier to ¥134.6 billion (approximately $853.5 million). Growth in gas turbines and nuclear power, along with a weaker yen at ¥157 to the dollar versus ¥146 a year earlier, helped lift earnings. The company also doubled its free cash flow outlook for the current fiscal year to ¥600 billion (approximately $3.8 billion). Investors are weighing the stronger orders picture as support for medium-term earnings growth, while some remain cautious because the company's net profit forecast is below the average analyst estimate of ¥418.8 billion (approximately $2.7 billion) compiled by IBES from 15 analysts.