The following is a summary of the Mitsubishi Heavy Industries, Ltd. (MHVYF) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Mitsubishi Heavy Industries reported significant year-on-year increases in order intake, revenue, and profit for the first half of FY2024.

• Record highs were achieved for order intake, revenue, and profit items for a first half.

• Business profit increased by 87% due to revenue growth in main businesses and the effect of improved product mix and profit margins.

• Net income was influenced by foreign exchange effects, with a decrease of over JPY30 billion due to fluctuations in foreign exchange rates.

Business Progress:

• Full-year order intake guidance increased by JPY150 billion to JPY2 trillion and business profit guidance by JPY10 billion to JPY180 billion due to strong performance, particularly in the energy systems segment.

• In plant and infrastructure systems, order intake, revenue, and profit also showed favorable increases year-on-year.

• The Logistics, thermal and drive systems segment experienced flat growth, but strategies for future improvement are in place.

• In aircraft, defense, and space segments, although order intake decreased compared to last year, it was still high, and revenue increased due to large backlog execution.

Opportunities:

• Mitsubishi Heavy Industries foresees strong demand in markets for gas turbines, nuclear power, and defense, as well as metals machinery and aero engines.

• The company plans to increase personnel by 10% by FY 2026, focus on expanding production capabilities in blades, and invest in R&D for decarbonized gas turbines to maintain leading market share.

• Investments are being made to strengthen business execution capabilities in nuclear power and logistics systems, particularly targeting North American and Middle Eastern markets.

• Growth in data centers and environmental products like natural refrigerants presents further opportunities.

Risks:

• The company acknowledges overall operating uncertainty in the second half of the year due to geopolitical risks, commodity price inflation, and foreign exchange fluctuations.

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