Company Reports

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

Mitsubishi Electric's fiscal 2026 (ending March 2027) first-quarter sales rose 14% year on year to JPY 1.5 trillion, while its adjusted operating margin expanded 250 basis points to 9.6%. The firm raised full-year adjusted operating profit guidance 5% to JPY 620 billion. Shares fell 6% intraday.

Mitsubishi Electric reported fiscal 2025 (ended March 2026) sales growth of 7% to a record JPY 5.9 trillion. For fiscal 2026, its guidance is for sales of JPY 6.2 trillion, up 5%, with infrastructure revenue rising 12% to JPY 1.6 trillion, over a quarter of total sales. Shares rose 2.5% on April 30.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

Mitsubishi Electric reported record December-quarter sales of JPY 1.42 trillion, up 5% year over year, driven by 18% growth in infrastructure sales. MEC reduced its fiscal 2025 (ending March 2026) operating profit guidance by 7% to JPY 400 billion due to an increase in one-time charges.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

Mitsubishi Electric, or MEC, reported record September-quarter sales of JPY 1.42 trillion, driven by infrastructure sales up 12.4% to JPY 316 billion. MEC raised fiscal 2025 (ending March 2026) sales guidance by 5% to JPY 5.67 trillion while keeping operating profit guidance at JPY 430 billion.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

Mitsubishi Electric reported record June-quarter sales of JPY 1.3 trillion and operating profit of JPY 112 billion, primarily driven by its infrastructure business. Segment sales rose 22.3% year on year to JPY 265 billion, with margin up 5.1 percentage points to 6.8%. Shares jumped 6% on Aug. 1.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

We raise our fair value estimate for narrow-moat Mitsubishi Electric by 10% to JPY 2,550, based on an upward revision to the infrastructure segment, with revenue up by 3%-5% and operating margin up by 3-4 percentage points over our forecast period. The company has proved that its infrastructure segment is not a flash in the pan, but a sustainable and profitable business. While sales from the infrastructure segment were maintained at around 20% of companywide revenue from the previous year, operating profit from the infrastructure segment rose to 23% of overall operating profit in fiscal 2024 (ending March 2025), a massive lift from 9% of overall operating profit in fiscal 2023. With the budget expansion by the Japanese Ministry of Defense in support of the enhanced Defense Buildup Program between fiscal 2023 and 2027, we affirm that the infrastructure business will be another growth driver for Mitsubishi Electric over the midterm, second to industry and mobility. We reiterate our revenue compound annual growth rate estimates for the infrastructure business at 5% between fiscal 2025 and 2029. Shares rose by 5% after the announcement of fiscal 2024 results on April 28 and by about 8% above our fair value estimate. We will wait for the reacceleration of the industry and mobility business, especially the factory automation systems business, to justify a further lift in our fair value estimate.

We raise our fair value estimate to JPY 2,320 per share from JPY 2,270 for narrow-moat Mitsubishi Electric, or MEC, reflecting an upward revision on revenue compound annual growth rate estimates of the infrastructure business to 4.9% from 0.8% between fiscal 2024 and 2028.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

We raise our fair value estimate to JPY 2,270 per share from JPY 2,200 for Mitsubishi Electric, reflecting the company’s remarkable first-half performance across segments except for the factory automation, or FA, systems segment. We raise our forecast on companywide revenue growth in fiscal 2024 to 3.9% from 2.3% and nudge up operating margin to 7.5% from 6.6%, largely due to outperformance in the infrastructure business and the air conditioning systems segment. Meanwhile, we don’t think the company will maintain the current revenue growth trend over the longer term. As a result, we keep our revenue compound annual growth rate forecast of 1.9% between 2024 and 2028 and reiterate our midterm operating margin of 8.0% in fiscal 2028 companywide. We continue to expect FA and air conditioning systems to be the primary revenue drivers over the medium term, with their sales growing at CAGRs of 6.0% and 5.4%, respectively, between 2024 and 2028. The shares are currently fairly valued.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

Although Mitsubishi Electric’s, or MEC’s, June quarter revenue growth of 5% year on year was largely in line with our expectations, its operating margin fell short of our previous estimate, declining 0.4 percentage points to 4.6%, mainly due to weak results of the factory automation, or FA, systems segment. Quarterly FA systems sales declined 15.5% year on year, with the segment’s operating margin down from 14.5% to 3.1%, due to deteriorating capacity utilization and a negative mix from lower sales of its profitable programmable logic controllers and servo motors. Further, quarterly orders of the FA systems segment only increased 8% year on year, suggesting lack of growth, excluding the impact of the weaker yen, as lithium-ion battery and memory-related investments remain sluggish. As a result of a weaker near-term outlook for the FA systems segment, we cut our fiscal 2024 (ending March 2025) operating income estimate by 5% to JPY 355 billion, with our operating margin assumption at 6.6%, down from 7.0%. However, our medium-term outlook remains intact, with FA systems sales and profitability to recover in fiscal 2025. Therefore, we maintain our fair value estimate at JPY 2,200, implying shares are currently fairly valued.

Mitsubishi Electric’s, or MEC’s, results for fiscal 2023 (ending March 2024), were met with a very strong market reaction, as its record high operating income of JPY 329 billion and full-year guidance of JPY 400 billion for fiscal 2024 exceeded market expectations. However, the company plans to improve its operating margin to 7.5% from 6.2% through restructuring initiatives, price hikes, and properties/assets sales, with flat sales growth for the current fiscal year, which seems overly bullish. While we expect further details on the restructuring to be disclosed in the investor relations day at the end of May, we think the market has overreacted to the aggressive guidance and market expectations for MEC’s margin expansion are too high.

Mitsubishi Electric utilizes its technology related to the control of electricity to cover a broad spectrum of business fields, including factory automation, or FA, elevators/escalators, social infrastructure equipment, satellite and communication equipment, and air conditioners. Its key top-line drivers—FA systems, automobile equipment, and air conditioning systems/home appliances—together make up about 60% of revenue.

Mitsubishi Electric’s, or MEC’s, December quarter revenue grew 1.5% year on year, with stronger-than-expected automotive equipment sales growth offset by weaker air conditioner, or A/C, and factory automation, or FA, systems sales. December quarter automobile sales grew 20% year on year, due to a recovery in automobile production. On the other hand, A/C sales declined 8% year on year, compared with 4% growth in the September quarter, due to channel inventory adjustments and sluggish end-demand in Europe/Asia. We revise our fiscal 2023 and 2024 revenue assumptions (ending March 2024 and 2025) to 4% growth and 2% growth, respectively, from 1% growth and 4% growth, after reflecting stronger automobile equipment sales for 2023 and weaker recovery of A/C and FA sales in 2024. Nonetheless, our medium-term outlook is unchanged and we maintain our fair value estimate for MEC at JPY 2,200, implying its shares are fairly valued.