Earnings quality
Compare earnings and operating cash flow for earnings quality.
Mitsubishi Heavy Industries, Ltd.
Ticker 7011 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-24 · Period end 2026-03-31
Takeaway
Dig deeperThe numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
equity ratio is 37.3%.
Mixed signals — use cash flow and the balance sheet before treating the year as clean.
ActionDig deeper
OP margin—
Equity ratio37.3%
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
三菱重工業株式会社 is a Japanese listed company. Its reportable segments include Total Of, Aircraft Defense And Space, Other, Energy Systems.
- Total Of
- Aircraft Defense And Space
- Other
- Energy Systems
- Plants And Infrastructure Systems
- Logistics Thermal And Drive Systems
- Disclosure Of Changes In
Segments Total Of · Aircraft Defense And Space · Other · Energy Systems · Plants And Infrastructure Systems · Logistics Thermal And Drive Systems
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | — | — |
| Cost of sales* | — | — |
| Gross profit | ¥871.1B | ¥1.1T |
| Operating profit (loss) | — | — |
| Finance income | ¥12.8B | ¥59.5B |
| Finance costs | ¥15.7B | ¥17.0B |
| Income tax expense | ¥106.4B | ¥116.3B |
| Profit (loss) | ¥262.0B | ¥345.9B |
| Profit (loss) attributable to owners | ¥245.4B | ¥332.1B |
| Basic EPS (¥) | 73.04 | 98.86 |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥657.8B | ¥1.3T |
| Current assets | ¥3.9T | ¥5.4T |
| Non-current assets | ¥2.7T | ¥2.8T |
| Total assets | ¥6.7T | ¥8.3T |
| Short-term borrowings | — | — |
| Current liabilities | ¥3.1T | ¥4.3T |
| Non-current liabilities* | ¥1.0T | ¥780.1B |
| Total liabilities | ¥4.2T | ¥5.0T |
| Equity attributable to owners | ¥2.3T | ¥3.1T |
| Total equity | ¥2.5T | ¥3.2T |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥530.5B | ¥942.6B |
| Cash flows from investing activities | -¥187.7B | -¥49.2B |
| Cash flows from financing activities | -¥114.1B | -¥274.6B |
| Net increase (decrease) in cash | ¥226.5B | ¥698.4B |
| Cash at end of period | ¥657.8B | ¥1.3T |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥3.9T | ¥4.2T | ¥4.7T | ¥4.4T | ¥5.0T | |
| Profit to owners | ¥113.5B | ¥130.5B | ¥222.0B | ¥245.4B | ¥332.1B | |
| Total assets | ¥5.1T | ¥5.5T | ¥6.3T | ¥6.7T | ¥8.3T | |
| Cash & equivalents | ¥314.3B | ¥347.7B | ¥431.3B | ¥657.8B | ¥1.3T | |
| Owners’ equity | ¥1.6T | ¥1.7T | ¥2.2T | ¥2.3T | ¥3.1T |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Mixed
The numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
On the income statement, revenue moved from — to — (—), so the top line did not break. Gross profit only slipped from ¥871.1B to ¥1.1T, while operating profit swung from — to — — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥942.6B (prior ¥530.5B), and cash on the balance sheet rose to ¥1.3T from ¥657.8B. When profits collapse but operating cash stays positive, read the notes for impairments and other non-cash charges before assuming the business stopped generating cash.
Goodwill on the balance sheet fell from ¥172.9B to ¥106.4B, consistent with heavy write-downs of past acquisitions’ carrying values.
The balance sheet got heavier on leverage. Total liabilities rose to ¥5.0T while owners’ equity fell to ¥3.1T. ROE moved from 10.7% to 12.2%, and the equity ratio from 35.2% to 37.4%. Employee count is 78,793 vs 77,274 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Capital structure held relatively steady.
Was this page helpful?
Source: EDINET S100YHZG
(三菱重工業株式会社), period end 2026-03-31.