Nikkei 225 · Heavy industry · ¥13T gas-turbine & defense backlog
Mitsubishi Heavy Industries
Japan's largest heavy-industry firm — power equipment, aerospace, defense and plants — where FY2026 saw two structural demand waves break at once: AI-datacenter power scarcity pushed large gas-turbine orders to a record (35 units), while Japan's rising defense budget and the export of 11 Australian Mogami-class frigates (its first postwar warship export) lifted defense revenue +40%. The order backlog swelled to ¥13,237.6B, effectively pre-booking years of revenue, so +14.1% revenue and +35% net profit are only the start of the cycle. In the value chain it builds the Boeing 787 wing from Toray T800 carbon fiber and, via a 33.3% stake in the GCAP JV Edgewing, is positioned in next-generation defense.
7011.T Updated Jul 12, 2026 2 AI consumers· 1 recurring
Per the valuechain.wiki graph, Mitsubishi Heavy Industries is directly linked to 2 companies (1 supply, 1 revenue relationships) and reaches 4 companies within two hops; the links are backed by 8 dated sources, 3 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · ¥4,974.1B (year ended March 2026, +14.1%, record high)
- Segments · Energy Systems · Aircraft, Defense & Space · Plants & Infrastructure · Logistics, Thermal & Drive
Revenue from
- North American & Asian power utilities / datacenters (gas turbines) High confidence
The engine of MHI's growth right now: AI-datacenter power scarcity pushed large frame gas-turbine orders to a record (35 units), and energy orders of ~¥3.6T (+40%) form the core of the ¥13T group backlog. With deliveries stretching into the 2030s, capacity-expansion execution — not short-term conditions — is the variable for realizing revenue. A three-way oligopoly with GE Vernova and Siemens Energy.Confirms EN Mitsubishi Heavy Industries Published May 12, 2026: Mitsubishi Heavy Industries FY2025 (ended March 2026) Results PresentationConfirms EN Mitsubishi Heavy Industries Published May 12, 2026: Mitsubishi Heavy Industries Outline of FY2025 (year ended March 2026) Financial ResultsMentions EN Nikkei Asia Published Nov 1, 2025: Mitsubishi Heavy boosts order forecast on data center power demand - Japan Ministry of Defense & government (defense, missiles, H3) High confidence
The prime beneficiary of Japan's security-policy shift: a rising defense budget pushed missile, ship and fighter orders, lifting Aircraft, Defense & Space revenue +40%, while 11 Australian Mogami frigates (Japan's first postwar warship export) signal a structural break beyond the domestic market. Counterparties are the government and JAXA, so individual contracts are undisclosed, but multi-year budget visibility underpins the downside.Mentions EN Analyst consensus (16 analysts) Published May 15, 2026: Mitsubishi Heavy Industries (7011) analyst consensus — Buy, average target ¥5,553Confirms EN Mitsubishi Heavy Industries Published May 12, 2026: Mitsubishi Heavy Industries Outline of FY2025 (year ended March 2026) Financial ResultsConfirms KO Etoday Published Apr 21, 2026: Japan's first warship export — MHI wins Australia's 11 next-gen frigates (Mogami-class)Mentions EN Nikkei Asia Published Nov 1, 2025: Mitsubishi Heavy boosts order forecast on data center power demand - Boeing (787 composite wing box) High confidence
Its window into the commercial-aero cycle: a Tier-1 relationship building Boeing's 787 composite wing box in Nagoya and Shimonoseki, 1,000+ units shipped since 2007. Because it forms the wing from Toray T800 carbon fiber, a recovery in 787 build rates flows through simultaneously to this revenue and to Toray's material demand.Confirms EN Mitsubishi Heavy Industries Published Jan 1, 2025: Mitsubishi Heavy Industries — Boeing 787 composite wing boxMentions EN CompositesWorld Published Jan 1, 2024: Boeing 787 update — MHI wing box uses Toray T800 prepreg - Utilities & government (nuclear, LWR, fuel cycle) Medium confidence
Nuclear business within Energy Systems. FY2026 orders rose across Japanese light-water-reactor restarts, fuel-cycle facilities and next-gen reactors; Japanese utilities (e.g. Kansai) and the government are the main counterparties (individual contracts undisclosed).Confirms EN Mitsubishi Heavy Industries Published May 12, 2026: Mitsubishi Heavy Industries FY2025 (ended March 2026) Results Presentation
Pays to
- Toray (T800 carbon-fiber prepreg) High confidence
Single-material dependence that governs the 787 wing's properties: MHI forms the Boeing 787 wing box from Toray T800 toughened prepreg via automated tape laying. As a primary structure it is effectively non-substitutable, so Toray's carbon-fiber capacity and pricing feed directly into MHI's aerospace cost and delivery.Mentions EN Mitsubishi Heavy Industries Published Jan 1, 2025: Mitsubishi Heavy Industries — Boeing 787 composite wing boxConfirms EN CompositesWorld Published Jan 1, 2024: Boeing 787 update — MHI wing box uses Toray T800 prepreg - Steel, forgings & equipment materials (raw materials) Medium confidence
Special steels, large forgings and castings for gas turbines, reactors, ships and plants are core costs; material and subcontracting inflation are margin variables.Confirms EN Mitsubishi Heavy Industries Published May 12, 2026: Mitsubishi Heavy Industries Outline of FY2025 (year ended March 2026) Financial Results
Investments
- Edgewing (GCAP 6th-gen fighter JV, 33.3%) High confidence
An equity bet on next-generation defense: in June 2025 it launched the GCAP 6th-gen fighter JV Edgewing with UK's BAE and Italy's Leonardo at 33.3% each. As the F-2 successor program (targeting 2035), it is MHI's next-decade defense pipeline, leveraging domestic fighter capability across a three-nation split.Confirms EN Leonardo / GCAP Published Jun 20, 2025: GCAP partners launch JV 'Edgewing' — BAE, Leonardo, MHI (JAIEC) 33.3% each
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Viasat | lead2 | +36.4 | -28.9 | -11.7 | -69.6 | +304.9 | +113.5 |
| SES S.A. | lead2 | +2.8 | +10.6 | -13 | -36 | +141.5 | +15.8 |
| Boeing | lead1 | -6 | -5.4 | +36.8 | -32.1 | +22.7 | +2.4 |
| Mitsubishi Heavy Industries | node | +7.2 | +68.3 | +100.5 | +134.2 | +98.3 | -15.3 |
| Toray Industries | benef1 | +8.3 | +12.5 | -4.8 | +49.2 | +7.5 | +1.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
MHI's thesis: in a long-cycle industry where backlog pre-books revenue, two structural demand waves have attached at once. First, AI-datacenter power scarcity is driving large gas turbines (35 orders; capacity to double by FY2030) within a three-way oligopoly with GE Vernova and Siemens Energy — a backlog stretching into the 2030s, hence insensitive to short-term swings. Second, Japan's defense-budget rise and a first warship export (11 Australian Mogami frigates) grew defense +40% and, via GCAP (33.3% of Edgewing), booked the next decade. The key asymmetry is that +14.1% revenue is merely the front end of a ¥13T backlog. Graph propagation: the Toray (T800) → MHI (wing) → Boeing (787) triangle ties it to the commercial-aero cycle, while Edgewing shares defense-program risk with BAE and Leonardo. Risks are execution on gas-turbine capacity expansion and cost on large defense projects.
Analysis generated from returns as of 2026-05-12