TOKYO, Nov 5, 2024 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI, TSE Code: 7011) announced that order intake rose 7.9% year-on-year to JPY3,383.5 billion in the half year ended September 30, 2024. Revenue rose 11.1% to JPY2,298.1 billion year-on-year, resulting in profit from business activities (business profit) of JPY188.4 billion, an 86.7% increase over the previous fiscal year, which represents a profit margin of 8.2%. Profit attributable to owners of parent (net income) was JPY107.1 billion, an increase of 16.5% year-on-year, with a profit margin of 4.7%. EBITDA was JPY266.2 billion, a 57.7% increase over 1H FY2023, with an EBITDA margin of 11.6%, up 3.4 percentage points year-on-year.
In Energy, order intake increased by JPY225.6 billion YoY as Gas Turbine Combined Cycle (GTCC) and Aero Engines continued to see strong demand. Contracts for nine large frame gas turbine units were concluded in the first half, with the largest YoY growth seen in the Americas. Revenue increased by JPY71.2 billion YoY mainly from large volume in Aero Engines and steady project execution in GTCC and Nuclear Power. Margin improvements in GTCC and Steam Power, together with higher revenue and a rebound from 1H FY2023 one-time expenses in Aero Engines, as well as stable performance in Nuclear Power served to increase segment business profit by JPY61.5 billion YoY.
In P&I, order intake was up JPY176.6 billion YoY due to strength in Metals Machinery, Machinery Systems, and Waste-to-Energy Systems. Revenue grew by JPY12.1 billion as Metals Machinery continued to work through its extensive backlog. Margin improvements in Engineering and Machinery Systems, combined with increased revenue in Metals Machinery helped to raise segment business profit by JPY12.0 billion YoY.
In LT&D, revenue was down JPY0.5 billion YoY due to fewer unit deliveries in Logistics Systems. This issue, combined with additional costs caused by supply chain disruption in Turbochargers resulted in a JPY9.7 billion decline in segment business profit.
In ADS, order intake decreased by JPY197.2 billion YoY in response to extremely large orders volume in 1H FY2023 in Defense & Space. Revenue was up JPY112.7 billion YoY mainly due to growth in Aircraft & Missile Systems in Defense & Space. Higher unit deliveries and positive impact from the depreciation of the yen in Commercial Aircraft also served to increase revenue. The factors affecting revenue also served to raise segment business profit by JPY16.5 billion YoY.
FY2024 Earnings Forecast
MHI revised its guidance for the period ending March 31, 2025, increasing the target for order intake by JPY200 billion over the previous announcement made August 6, 2024. This was in response to steady progress mainly in Energy. Totals for all other financial indicators remained unchanged, while business profit targets for Energy, P&I, and LT&D were updated.
CFO Message
"In the first half of this fiscal year, MHI continued the strong growth trend started in the first quarter, with order intake, revenue, business profit, and net income all up year-on-year," Hisato Kozawa, MHI Chief Financial Officer commented. Kozawa continued, "In terms of order intake, GTCC and Aero Engines in Energy, and Metals Machinery in P&I were stand-outs, enabling YoY orders growth despite the extremely high level achieved during the same period last year in Defense & Space. Revenue was up mainly in Energy and ADS as these segments steadily executed on their large order backlogs. These revenue increases, combined with margin improvements and depreciation of the yen helped us to greatly increase progress toward our business profit guidance of JPY350 billion."
"Based on our results through September of this year, especially in Energy, we have increased our full-year order intake guidance by JPY200 billion," Kozawa went on. "We have also updated the business profit forecast for three of our segments in order to reflect the faster progress seen in Energy and P&I, and the slightly lagging performance in LT&D. All other targets have been restated. Looking forward to the remaining two quarters, we aim to outperform current business profit guidance by continuing the strong trends from the first half while effectively controlling one-time expenses."
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.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world's leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
Source: Mitsubishi Heavy Industries, Ltd.
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