Mitsubishi Electric (6503) Q2 2025 earnings summary

Executive summary

• H1 FY25 revenue reached ¥2,643.6 bn, up 4% year-over-year, and operating profit hit ¥176.7 bn, up 30%, both record highs for the first half, driven by a weaker yen and growth in Infrastructure and Life segments.

• Net profit attributable to stockholders was ¥118.6 bn, slightly down 1% year-over-year, while overall net profit was ¥132.1 bn, up 3%.

• Comprehensive income dropped sharply to ¥120.1 bn from ¥264.8 bn, mainly due to negative exchange differences and fair value changes.

• Interim dividend of 20 yen per share declared; annual dividend expected to be 50 yen per share, with a focus on maintaining financial soundness and growth investments.

Financial highlights

• Q2 FY25 revenue was ¥1,357.1 bn, up ¥38.9 bn year-over-year; operating profit rose to ¥118.0 bn, up ¥43.1 bn; net profit attributable to stockholders increased to ¥69.5 bn, up ¥7.1 bn.

• H1 FY25 operating margin improved to 6.7% from 5.4% year-over-year; net profit attributable to stockholders was ¥118.6 bn, slightly down from ¥120.2 bn year-over-year.

• Cash flows from operating activities increased by ¥89.6 bn year-over-year to ¥271.4 bn; free cash flow rose by ¥54.4 bn to ¥152.9 bn.

• Total assets decreased to ¥6,092.8 bn from ¥6,167.3 bn at March 2024, mainly due to lower trade receivables; equity increased by ¥13.5 bn.

• R&D expenditures for H1 were ¥111.2 bn, up 4% year-over-year, representing 4.2% of revenue.

Outlook and guidance

• FY25 forecast remains unchanged: revenue of ¥5,390.0 bn (+3%), operating profit of ¥400.0 bn (+22%), and net profit attributable to stockholders at ¥315.0 bn (+11%).

• Annual dividend forecast is 50 yen per share, with a target adjusted DOE of about 3% and a D/E ratio benchmark of 0.3.

• R&D expenditures for the full year are expected to reach ¥235.0 bn (+6%); capital expenditures forecast at ¥300.0 bn (+20%).