Mitsubishi Electric (6503) Q2 2026 earnings summary

Executive summary

• H1 FY26 revenue reached ¥2,732.5 billion, up ¥88.9 billion year-over-year, and operating profit was ¥224.33 billion, both record highs, driven by strong Infrastructure sales, improved pricing, and a one-time gain from a subsidiary share transfer.

• Despite a stronger yen, profitability improved due to higher sales, cost reductions, and efficiency improvements.

• Net profit attributable to stockholders rose 60% year-over-year to ¥189.4 billion.

• Interim dividend increased to ¥25 per share (+¥5 YoY), with a planned annual dividend of ¥55 and a year-end forecast of ¥30 per share.

• Gains from transfer of subsidiary shares contributed to profit growth.

Financial highlights

• Operating profit margin improved by 1.5 percentage points to 8.2%, and net profit margin rose to 7.4% year-over-year.

• Cost of sales ratio improved to 68.3%, a 1.0 point improvement year-over-year.

• Free cash flow for H1 FY26 was ¥297.9 billion, nearly doubling year-over-year, supported by higher operating cash flow and asset sales.

• Cash and cash equivalents at period end: ¥862.8 billion (+¥108.3 billion YoY).

• SG&A expenses rose by ¥27.1 billion due to higher personnel and R&D costs.

Outlook and guidance

• Full-year FY26 revenue forecast raised to ¥5,670.0 billion (up ¥270.0 billion from previous), with operating profit guidance unchanged at ¥430.0 billion.

• Net profit attributable to stockholders forecast at ¥370.0 billion (+¥30.0 billion from previous).

• Segment forecasts revised upward for Infrastructure, Industry and Mobility, and Semiconductors & Devices due to higher volumes and favorable FX.