Mitsubishi Heavy Industries Achieves Record-Breaking Cash Flow in FY2021 and Plans Increased Dividends

TOKYO, May 12, 2022 - (JCN Newswire) - Mitsubishi Heavy Industries (MHI, TSE Code: 7011) announced that order intake rose 21.9% year-over-year to ¥4,067.7 billion in the period ended March 31, 2022. Revenue rose 4.3% to ¥3,860.2 billion year-over-year, resulting in business profit(1) of ¥160.2 billion, a 196.3% increase from the previous fiscal year, which represents a profit margin of 4.2%. Net profit was ¥113.5 billion, an increase of 179.4% year-over-year, with a profit margin of 2.9%. ROE was 7.7%, an increase of 4.6 percentage points year-over-year. EBITDA was ¥292.4 billion, a 51.3% increase from FY2020, with an EBITDA margin of 7.6%, up 2.4 percentage points year-over-year. Free cash flow was ¥301.8 billion, a company record high and an increase of ¥579 billion year-over-year.

Underpinning the FY2021 results was strong revenue in the Gas Turbine Combined Cycle (GTCC) business (Energy Systems), which increased 15% year-over-year, in part due to shipments of the latest, high-efficiency JAC model. Nuclear Power (Energy Systems) continues to show strong performance, with revenue growing steadily over the past five years. Another notable achievement was the recovery of revenue in the Logistics, Thermal & Drive Systems segment to pre-COVID (FY2019) levels. The large increase in orders booked year-over-year is attributed to pull-ins of some FY2022 projects (Defense & Space), booming demand for steelmaking machinery (Metals Machinery, a Plants & Infrastructure Systems segment business), and the securing of several Biomass Power projects (Energy Systems).

FY2022 Guidance:
MHI also announced its guidance for the period ending March 31, 2023. Revenue is projected to increase year-over-year driven by high revenue in Logistics, Thermal & Drive Systems. Recovery in Energy Systems is expected to lead to an increase in business profit. Another increase in dividends, this time to ¥120 per share, is also planned. Risks to profitability include materials and logistics cost inflation, semiconductor shortages, and geopolitical factors. However, the company is preparing aggressive countermeasures, including price negotiations and retooling supply chains, to mitigate these potential effects and achieve full-year targets. MHI will experience a year-over-year decrease in free cash flow as it continues to make necessary investments in Carbon Neutrality as a part of its MISSION NET ZERO initiative. However, this is well within the range of normal business operations, and profitability remains strong, as evidenced by a projected double-digit increase in EBITDA year-over-year.

CFO Message:
“FY2021 was a remarkable year for MHI Group in many ways,” said Hisato Kozawa, Member of the Board, Executive Vice President, and Chief Financial Officer of MHI. “We made improvements in all major financial indicators while achieving record-breaking free cash flow and increasing shareholder returns. All of this in a period when difficult market conditions such as soaring materials and logistics costs as well as semiconductor shortages put pressure on our bottom line. I believe that our success is a testament to the resilience of our businesses and the health of MHI’s financial fundamentals, which will only improve in FY2022. The surety of our financials will enable us to make marked progress toward achievement of our 2021 Medium-Term Business Plan targets in FY2023.”

(1) Profit before finance income, finance expenses, and income taxes.

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, logistics & infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit or follow our insights and stories on

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