Mitsubishi Heavy Industries, Ltd. — Cyborg Score 8/10
Strong
Industrial Conglomerate / Heavy Machinery Manufacturing
Strategic Profile
Strong multi-year order growth, margin expansion, and rising high-margin service revenues position the company for sustained earnings outperformance, while leadership in decarbonization and defense alongside digital upgrades enables outperformance amid global infrastructure, climate, and security investment trends. Gas turbines drove strong order intake performance, booking 31 large frame units mainly in North America and Asia.
Cyborg Score Rationale
MHI revised upward its guidance for FY2026, increasing forecasts for order intake, business profit, net income, EBITDA, and free cash flow based on stronger-than-anticipated performance through Q3. Revenue for the first nine months of FY2025 increased 9.2% with EBITDA reaching ¥393.1 billion (11.8% margin) and free cash flow improving significantly to ¥167.6 billion.
Top Insights
Gas turbine company (GTCC) drove strong order intake, booking 31 large frame units mainly due to data center demand and energy infrastructure replacement needs
Full-year guidance raised to 6.7 trillion yen order intake, 410 billion yen business profit, and 260 billion yen net income
Balance sheet strengthened with equity ratio improving to 35.9% and debt-to-equity decreasing to 0.21
13 analysts recommend buying the stock with an overall rating of Strong Buy
Named Competitors
GE Vernova — Power equipment and energy transition solutions
Boeing Defense — Aerospace and defense systems
Siemens Energy — Industrial power and infrastructure solutions
Kawasaki Heavy Industries — Aerospace, defense, and industrial machinery
Recent Developments
(February 2026) Raised full-year FY2026 guidance for order intake, business profit, net income, EBITDA, and free cash flow
(December 2025) Q3 FY2025 revenue grew 9.2% year-over-year to ¥3,326.98 billion with net income up 23% to ¥210.99 billion
(December 2025) Won high-stakes contest against German rival to build Australia's new frigate fleet
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