Mitsubishi Heavy Industries (MHI), the world’s leading gas turbine manufacturer, has announced a remarkable financial performance for the fiscal year ended March, with record sales and profits. The company reported a net profit of 222 billion yen ($1.4 billion), marking a substantial 70% increase from the previous year, and sales climbed 11% to a record high of 4.65 trillion yen. This achievement marks the company’s highest net profit in a decade, surpassing the previous record of 160 billion yen set in fiscal 2013.
Amid escalating geopolitical tensions, MHI has seen a surge in demand for its missiles from the Japanese government, contributing significantly to its revenue growth. The company’s shift towards hydrogen technologies and away from coal and natural gas is also accelerating, aligning with global energy transition trends.
For the upcoming fiscal year, Mitsubishi Heavy forecasts a record operating profit of 350 billion yen, up 24%, and aims for a net profit of 230 billion yen, a 4% increase, with projected sales rising 5% to 4.9 trillion yen.
Responding to the Tokyo Stock Exchange’s call for greater shareholder returns, MHI announced an increase in its annual dividends from 130 yen to a record 200 yen. CFO Hisato Kozawa emphasized the company’s commitment to rewarding shareholders while balancing significant investments in energy transition projects.
Mitsubishi Heavy’s product portfolio spans across various sectors, including defense, nuclear power, and automated train systems. However, gas turbines remain a cornerstone of its business, with a commanding 36% global market share. The company’s strategic pivot to alternative fuels like ammonia and hydrogen for power generation highlights its proactive approach to adapting to evolving energy demands.
As global discussions intensify around phasing out coal power, MHI is poised to lead the shift, developing technologies to retrofit coal plants for cleaner alternatives. This initiative aligns with recent agreements among industrial nations to phase out unabated coal power by 2035.
Mitsubishi Heavy also continues to explore international defense collaborations, including potential submarine sales to Canada and frigate development with Australia, demonstrating its significant role on the global stage in both commercial and defense sectors.
