Mitsubishi Heavy Industries Ltd. posted a 38% surge in operating profit for the first nine months of fiscal 2024, fueled by robust orders for gas turbines and steady growth in its defense business.
Operating profit reached ¥264.7 billion ($1.8 billion) for the April-December period, up from ¥191.6 billion a year earlier, the Tokyo-based company said Sunday. Revenue climbed 8.8% to ¥3.55 trillion.
Orders for gas turbine combined cycle systems remained strong, particularly in the Americas where MHI secured contracts for 16 large turbines. The company’s energy systems division saw profits nearly double to ¥154.5 billion, benefiting from higher margins and increased deliveries.
Defense-related revenue surged 31% to ¥689.6 billion, though commercial aviation profits declined due to lower Boeing 777 deliveries. Supply chain disruptions hit the logistics and drive systems unit, where profit fell 28% to ¥42.3 billion.
The industrial group raised its full-year forecast, targeting operating profit of ¥380 billion on sales of ¥5 trillion. Free cash flow is expected to break even, an improvement from the previous projection of negative ¥100 billion.
“Beyond revenue gains, margin improvements and favorable exchange rates drove the large profit increase,” CFO Hisato Kozawa said. MHI aims to exceed the revised guidance by “actively mitigating risks while building on successes,” he added.
