Mitsubishi Heavy Industries (7011) AI Stock Analysis

• Market Cap: ¥17.46T
• Dividend Yield: 0.62%
• Average Volume (3M): 20.30M
• Price to Earnings (P/E): 59.2
• Beta (1Y): 1.66
• Revenue Growth: -0.88%
• EPS Growth: 6.85%
• Country: JP
• Employees: 77,697
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 3,373,647,700
• 10 Day Avg. Volume: 24,489,740
• 30 Day Avg. Volume: 20,303,846
• PEG Ratio: 3.28
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 29.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,410.42
• Price Target Upside: 4.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥5,132.00 ▼(-1.21% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven mainly by improving underlying financial performance (higher margins, better leverage, and stronger recent cash flow) and supportive technical momentum. These positives are tempered by expensive valuation (high P/E and low yield) and uncertainty from the sharp TTM revenue growth decline.

Positive Factors

Improving Profitability

Sustained margin expansion over multiple years indicates structural improvement in project selection, pricing power, or operational efficiency across MHI's engineering and services mix. Higher margins increase resilience to cyclical downswings and improve reinvestment capacity for long‑term competitiveness.

Stronger Balance Sheet

Material de‑leveraging lowers refinancing and liquidity risk in capital‑intensive businesses. A stronger equity base and lower leverage enhance the company's ability to fund large EPC projects, pursue long‑cycle contracts, and absorb cyclical shocks without eroding strategic investment capacity.

Improved Cash Generation

Robust free cash flow and higher operating cash flow vs prior years support durable funding for after‑sales service networks, capex and debt reduction. Consistent FCF generation enhances earnings quality and provides flexibility for strategic investments and long‑term service contracts.

Negative Factors

Sharp TTM Revenue Contraction

A dramatic TTM revenue drop materially reduces visibility into sustainable top‑line scale and may reflect lost or nonrecurring project comparables. That uncertainty can strain backlog conversion assumptions and makes durable margin retention harder to assume over the medium term.

Cash Flow Volatility

Large year‑to‑year swings in operating and free cash flow highlight sensitivity to project timing and working capital. This volatility complicates capital allocation, increases refinancing and liquidity planning needs, and can pressure margins during unfavorable project cycles.

Sizable Absolute Debt

Despite improved leverage ratios, large absolute debt levels leave the firm exposed in cyclical downturns or rising interest environments. High nominal debt can limit strategic flexibility for M&A, increase interest expense risk, and amplify operational strain if project cash receipts delay.

Mitsubishi Heavy Industries Business Overview & Revenue Model

Company Description

Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. The company operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. It offers thermal, renewable energy, nuclear, engine, nuclear power generation, and chemical power plants, lithium-ion battery products, and oil and gas production plants, as well as fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. The company also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, it offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, the company provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship & maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; and CO2 capture plants, as well as provides after-sales services. The company was founded in 1884 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Heavy Industries generates revenue through multiple key streams, primarily by manufacturing and selling advanced industrial products and systems. The company's core revenue sources include the Aerospace segment, which involves the production of commercial and military aircraft; the Energy segment, focusing on power generation solutions like gas turbines and nuclear energy; and the Machinery and Infrastructure segment, which provides heavy machinery and industrial solutions. MHI also benefits from long-term contracts and partnerships with various governments and corporations, enhancing its revenue stability. Additionally, the company engages in maintenance and service agreements, contributing to ongoing revenue after initial sales. Factors such as advancements in technology, global energy demands, and defense spending significantly influence MHI's earnings potential.

Mitsubishi Heavy Industries Financial Statement Overview

Summary

Multi-year improvement in profitability and returns (EBIT margin ~1.2% in 2021 to ~7.9% in FY2025 and ~8.8% TTM; net margin ~1.1% to ~4.9% FY2025 and ~5.9% TTM) alongside a stronger balance sheet (debt-to-equity ~0.90 in 2021 to ~0.36 TTM) and improved cash generation (FCF ~¥290B FY2025 and ~¥585B TTM). Key risk is the extreme TTM revenue growth contraction (-75.1%) and historically volatile cash flows.

Income Statement

Profitability and scale have improved meaningfully versus earlier years. Annual revenue rose from ~¥3.70T (2021) to ~¥5.03T (2025), and margins expanded, with net margin improving from ~1.1% (2021) to ~4.9% (FY2025) and ~5.9% in TTM (Trailing-Twelve-Months). Operating profitability also strengthened (EBIT margin ~1.2% in 2021 to ~7.9% in FY2025 and ~8.8% in TTM). The key weakness is the sharp TTM revenue growth contraction (-75.1%), which suggests a major top-line disruption or comparability issue that adds uncertainty despite the improved margins.

Balance Sheet

Leverage has become more conservative while equity has grown. Debt-to-equity improved from ~0.90 (2021) to ~0.48 (FY2025) and ~0.36 in TTM (Trailing-Twelve-Months), indicating stronger balance-sheet resilience. Equity increased from ~¥1.37T (2021) to ~¥2.35T (FY2025) and ~¥2.65T (TTM), and return on equity improved to ~10–11% (FY2024–TTM) from ~3.0% (2021). A remaining watch item is still sizable absolute debt (near ¥1.0T–¥1.2T range historically), which can matter in cyclical end-markets, but overall balance-sheet trajectory is positive.

Cash Flow

Cash generation has rebounded strongly from weaker periods, including negative free cash flow in FY2023 and negative operating cash flow in FY2021. More recently, operating cash flow rose to ~¥530B (FY2025) and ~¥803B in TTM (Trailing-Twelve-Months), with free cash flow improving to ~¥290B (FY2025) and ~¥585B (TTM). Free cash flow is solid relative to earnings (about ~55% of net income in FY2025 and ~73% in TTM), supporting earnings quality. The main weakness is volatility across years (swinging from negative to strongly positive), which implies working-capital or project-cycle sensitivity.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.81T	5.03T	4.66T	4.20T	3.86T	3.70T
Gross Profit	996.79B	1.00T	906.33B	740.40B	633.61B	549.60B
EBITDA	607.74B	557.52B	482.05B	351.72B	307.43B	284.02B
Net Income	284.33B	245.45B	222.02B	130.45B	113.54B	40.64B
Balance Sheet
Total Assets	7.39T	6.66T	6.26T	5.47T	5.12T	4.81T
Cash, Cash Equivalents and Short-Term Investments	686.74B	657.82B	431.29B	347.66B	314.26B	245.42B
Total Debt	967.69B	1.13T	1.14T	1.19T	1.08T	1.24T
Total Liabilities	4.61T	4.19T	3.90T	3.64T	3.45T	3.37T
Stockholders Equity	2.65T	2.35T	2.24T	1.74T	1.58T	1.37T
Cash Flow
Free Cash Flow	585.23B	289.77B	170.70B	-51.02B	156.31B	-241.16B
Operating Cash Flow	802.99B	530.46B	331.19B	80.89B	285.56B	-94.95B
Investing Cash Flow	-150.59B	-189.52B	-131.05B	-45.58B	16.31B	-182.25B
Financing Cash Flow	-538.16B	-112.32B	-158.90B	-18.90B	-255.77B	221.74B

Mitsubishi Heavy Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7011, the sentiment is Positive. The current price of 5195 is above the 20-day moving average (MA) of 4920.30, above the 50-day MA of 4562.26, and above the 200-day MA of 3961.20, indicating a bullish trend. The MACD of 112.98 indicates Positive momentum. The RSI at 65.48 is Neutral, neither overbought nor oversold. The STOCH value of 78.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7011.

Mitsubishi Heavy Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7011	69 Neutral	¥17.46T	59.23	10.81%	0.62%	-0.88%	6.85%
6594	69 Neutral	¥2.68T	23.56	6.88%	0.97%	5.35%	26.51%
7013	67 Neutral	¥4.78T	37.70	26.54%	0.71%	-1.66%	19.02%
6361	66 Neutral	¥2.55T	33.32	16.00%	1.38%	13.96%	12.97%
7012	64 Neutral	¥3.08T	27.84	13.25%	1.40%	14.12%	54.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6302	59 Neutral	¥769.44B	23.98	0.59%	2.95%	-2.67%	-85.21%

Mitsubishi Heavy Industries Corporate Events

Mitsubishi Heavy Industries Reshapes Top Management Ahead of 2026 Shareholders’ Meeting

Mitsubishi Heavy Industries announced a series of executive-level personnel changes effective March 31 and April 1, 2026, alongside nominations for its Board to be presented at the June 26, 2026 shareholders’ meeting. The reshuffle elevates several key leaders, including Masayuki Suematsu to Executive Vice President, CSO and President and CEO of Industrial Solution Systems, and Takuya Murase and Hidehito Mimaki to Executive Vice President roles overseeing Energy Systems and Nuclear Energy Systems respectively, while Hiroyuki Koguchi becomes Executive Vice President and Co-CSO in charge of the value chain, and legal chief Kazuo Ogura assumes additional responsibilities as Senior General Manager of the Legal Department. Further adjustments at the Senior Vice President and Senior Fellow levels reassign responsibilities in plants and infrastructure systems, GX (green transformation) solutions, and thermal systems, signalling an internal realignment of leadership to strengthen operational oversight and strategic focus in core business segments ahead of the upcoming fiscal and governance cycle.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5016.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

MHI Refines FY2025 Reporting After Excluding Logisnext Operations

The company’s Q1-3 FY2025 update highlights financial results and forecasts under IFRS, treating Mitsubishi Logisnext operations as discontinued, thereby reshaping reported order intake, revenue, and profit data to reflect only continuing businesses; assets and liabilities tied to ML are classified as held for sale, and related cash flows are detailed separately, signaling an ongoing portfolio simplification and clearer operational focus for stakeholders.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5016.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries Delivers Strong Profit and Cash Flow Growth in First Nine Months of FY2025

For the first nine months of FY2025 ended December 31, Mitsubishi Heavy Industries reported solid top- and bottom-line growth, with order intake rising 12.6% year on year to ¥5,029.1 billion and revenue climbing 9.2% to ¥3,326.9 billion. Profit from business activities increased 25.5% to ¥301.2 billion, profit before income taxes rose 29.5% to ¥329.2 billion, and profit attributable to owners of the parent advanced 22.6% to ¥210.9 billion, lifting basic earnings per share to ¥62.81. Operating cash flow swung sharply into positive territory at ¥256.7 billion versus a negative figure a year earlier, while total assets and equity attributable to owners of the parent also expanded, improving the equity ratio to 35.9%, underscoring stronger financial footing as the group reclassifies its Mitsubishi Logisnext business as discontinued operations and focuses its performance metrics on continuing businesses.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5016.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries Confirms Start of Tender Offer to Take Mitsubishi Logisnext Private

Mitsubishi Heavy Industries announced that LVJ Holdings 2 LLC will commence a tender offer for the shares and stock acquisition rights of Mitsubishi Logisnext Co., Ltd., its consolidated subsidiary in the logistics and material handling equipment business, from January 21 to February 18, 2026, after the completion of required domestic and international competition law procedures. Mitsubishi Heavy Industries will not tender its shares into the offer; instead, it plans to sell its Mitsubishi Logisnext stake via a post-offer share repurchase by Mitsubishi Logisnext and subsequently underwrite new shares issued by the tender offeror, resulting in Mitsubishi Logisnext ceasing to be a consolidated subsidiary, with the company stating that the revised timing of the tender offer will not affect its consolidated earnings forecast for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5173.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Updates Timeline for Mitsubishi Logisnext Take-Private Tender Offer

Mitsubishi Heavy Industries has provided an update on its plan to take its consolidated subsidiary Mitsubishi Logisnext Co., Ltd. private through a tender offer to be conducted by LVJ Holdings 2 LLC. The tender offer, originally targeted to start in late December 2025, has been delayed because some required procedures under competition laws in certain countries have not yet been completed; the offer is now expected to commence in January 2026 once all regulatory preconditions are satisfied, and the company has committed to making further timely disclosures on any material developments, underscoring the transaction’s dependence on global antitrust clearances and the timing uncertainty this creates for stakeholders.

The most recent analyst rating on (JP:7011) stock is a Hold with a Yen4457.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries to Transfer Wind Power Business to J-POWER

Mitsubishi Heavy Industries has entered a basic agreement with Electric Power Development Co., Ltd. (J-POWER) to transfer its domestic onshore wind power generation business to a newly established subsidiary, which will then be transferred to J-POWER. This strategic move aims to leverage J-POWER’s focus on expanding its core business in wind power, allowing MHI to maximize the expertise of its personnel and align with global decarbonization efforts. The transaction is expected to be completed by April 1, 2026.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries Reports Stable 1H FY2025 Financial Results and Strategic Focus

Mitsubishi Heavy Industries announced its financial results for the first half of fiscal year 2025, highlighting a stable financial position and positive cash flows. The company also provided an earnings forecast for FY2025, indicating a strategic focus on optimizing its business portfolio and enhancing regional revenue streams, which may impact its market positioning and stakeholder interests.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries Revises Earnings Forecast for Subsidiary

Mitsubishi Heavy Industries announced a significant revision in the earnings forecast for its subsidiary, Mitsubishi Logisnext Co., Ltd., for the fiscal year ending March 31, 2026. The revised forecast indicates a decrease in net sales and profits, suggesting potential challenges in the company’s financial performance and impacting stakeholder expectations.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries Reports Strong First Half FY2025 Financial Results

Mitsubishi Heavy Industries reported a positive financial performance for the first half of FY2025, with a notable increase in order intake by 8.5% and revenue by 7.3% compared to the same period in FY2024. The company’s strategic focus on continuing operations has resulted in improved profitability and cash flow, indicating a strong market position and potential for future growth.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.