Mitsubishi Heavy Industries (7011.TSE) Zen Horizon Deep-Dive Report

2. Financial Profile: Four Consecutive Record Years, with All FY2025 Metrics at Historical Highs

Full FY2025 financials (year ended 2026-03-31, IFRS consolidated):

*Converted at the 2025 average exchange rate of about JPY 153.5/USD

【Fact】FY2025 was the 4th consecutive year in which MHI set records across all core metrics: revenue, business profit, net income, orders, backlog, and free cash flow all reached historical highs. The JPY 13.24 trillion / USD 86.3 bn backlog means production is supported for about 2.7 years at the current revenue run rate. The backlog jump in Aircraft, Defense & Space was especially significant, including the JPY 1 trillion Mogami contract plus multiple Self-Defense Forces equipment orders, and the full segment delivered +40% YoY revenue growth.

FY2026 guidance (fiscal year ending 2027-03):

• Revenue: JPY 5,400 bn (+8.6% YoY)

• Business profit: JPY 540 bn (+24.9%)

• Orders: JPY 6,800 bn (orders YoY -11%, reflecting the high FY2025 base + several large orders already entering backlog)

• Dividend: JPY 29/share (+JPY 4)

【Inference】 The guidance looks moderate on the surface (+8.6% revenue), but +24.9% business profit indicates operating leverage is starting to show: high-margin GTCC aftermarket / maintenance contracts, steady execution of defense orders, and profit recovery after Plant & Infrastructure absorbs cost pressure. This is a typical "heavy industry re-enters an upcycle and margins expand" pattern.

Balance sheet + cash-flow improvement:

• Interest-bearing debt fell more than 20% sequentially, indicating strong operating cash flow + prudent capital allocation;

• Equity ratio improved to 37.3%, showing continued balance-sheet optimization;

• The dividend increase from ¥25 to ¥29, a moderate rise of about +16%, reflects management confidence in future cash-flow sustainability;

• No large-scale share buyback has been disclosed yet, but expectations remain because Japanese trading houses / industrial groups are increasingly repurchasing shares under Japan's corporate-governance reform push.

Long-term capex and new-business positioning: MHI confirmed in its H2 results announcement that it is increasing GTCC capacity (expanding the Takasago GTCC manufacturing base), the Mogami frigate production line (Nagasaki Shipyard), and hydrogen / ammonia development (Kobe Shipyard). Capex should remain elevated over the next 3 years, at about 4-5% of revenue. 【Inference】 This is strategic capex to prepare capacity for future orders. It will compress FCF in the short term, but it is necessary over the long run.

3. Valuation Profile: 40x P/E + a 5-Fold Share Price = A "Japan Premium" in the Global Industrial Re-rating

Current valuation snapshot (2026-06-08):

【Fact】 The current P/E of 37-40x is a significant premium level for a Japanese industrial group. Historically, MHI's long-run P/E hovered in the 12-18x range, except around major special projects. Over the past two years, the share price has risen from the ¥1,000 range at end-2023 (split-adjusted) to the current ¥3,699, a nearly 3.7-fold gain over 3 years, reflecting three layers:

• Japan defense-expansion dividend: Japan's defense budget rose from JPY 5.4 trillion in fiscal 2022 to JPY 9.04 trillion in FY2026, up +67% over 5 years. MHI is the largest beneficiary;

• AI data-center power demand = second spring for GTCC: alongside Siemens Energy and GE Vernova, GTCC heavy industry has entered a second upcycle after 2010-2014;

• Japan corporate-governance reform: TSE Prime PBR reform policy, foreign capital reallocating into Japanese industry, and Buffett's increased holdings in Mitsubishi Corp. / Itochu and others from 2020 onward have lifted overall sentiment, driving a systematic re-rating of Japan's industrial / trading-house sectors.

Three valuation bands (SOTP + integrated valuation under different scenarios):

• Bearish JPY 1,800-2,500: Japan's defense budget is compressed / GTCC orders fall after peaking / Plant & Infrastructure remains loss-making / sharp yen appreciation compresses dollar revenue / the global heavy-industrial re-rating peaks. Adjusted net income ¥250-350 bn -> Forward P/E 18-22x -> market cap ¥4.5-7.7 trillion / share price ¥1,400-2,300;

• Base JPY 2,700-3,800: FY2026 guidance is achieved (business profit +25% / net income about ¥440 bn) + defense budget continues +3-5% / GTCC orders persist / Australia follow-on deliveries proceed -> Forward P/E 22-30x -> market cap ¥9-13 trillion / share price ¥2,700-3,900;

• Bullish JPY 4,500-6,000: Japan's defense budget accelerates to 2% of GDP (+30% further upside) + US-Japan-Australia-India QUAD joint procurement + GTCC enters a supercycle (AI data-center megacycle lasts 10 years) + hydrogen / SMR becomes a second growth curve. FY2027 net income exceeds ¥600 bn -> Forward P/E 25-30x -> market cap ¥15-20 trillion / share price ¥4,500-6,000.

The current share price of JPY 3,699 is near the top end of the "base" band, close to the ¥3,800 boundary. It has -42% downside to the bearish-band midpoint of ¥2,150 and +42% upside to the bullish-band midpoint of ¥5,250. The risk-reward is essentially symmetric but skewed slightly negative, given that Japan industrial valuations are already meaningfully above historical averages and face mean-reversion pressure.

Fair buy price: JPY 3,000/share, at the lower end of the base band + 23x Forward P/E, relative to the FY26 net-income expectation of ¥440 bn. Buying below ¥3,000 implies the assumptions that FY2026 guidance is achieved and the defense-expansion cycle continues. It offers about +10% upside to the base midpoint and +75% upside to the bullish midpoint, while downside risk to the bearish midpoint of ¥2,150 is about 28%. The risk-reward improves to about 2:1.

4. Bull Case: Japan Defense Expansion + AI Data-Center GTCC Second Spring + Heavy-Industrial Re-rating Resonance

【View + Inference】 The MHI bull case is "Japan's industrial flagship being ignited simultaneously by three long-term themes." Any single theme could support the current valuation; with all three combined, the current 40x P/E "growth-stock valuation" is not excessive, provided all three themes keep being delivered:

• Japan's defense expansion is a structural theme that is "visible over 5 years and hard to short over 10 years": Japan's FY2026 defense budget of JPY 9.04 trillion (USD 58 bn) set a 12th consecutive record high, with a target of reaching 2% of GDP in fiscal 2027 (about JPY 11.5 trillion / currently about 1.9%). 【Fact】 After the 2022 security-strategy revision, Japan has followed a three-step path: comprehensive rearmament -> bilateral ally binding -> lifting restrictions on weapons-system exports. MHI is the most direct beneficiary: mass production of upgraded Mogami frigates for the Self-Defense Forces + Type 10 / Type 16 armored vehicles + Type 12 ground-launched anti-ship missiles + F-35 components + Tomahawk deployment, estimated to account for 30-40% of defense orders.

• Australia's Mogami mega-order = Japan's weapons-export icebreaker: The AU$10 bn / ~JPY 1 trillion contract is Japan's largest single postwar weapons export and opens the policy window for "Japanese weapons exports." 【Inference】 Possible follow-on customers include India under the QUAD framework, the Philippines, Indonesia, Vietnam, Canada with high-end frigate needs, and Saudi Arabia with Middle Eastern naval-vessel demand. This is why MHI is expanding the Nagasaki Shipyard: the expectation is total orders of USD 20-30 bn over the next 5 years, not just one USD 6.5 bn order.

• As one of the global big three in GTCC, MHI directly benefits from AI data centers: in the global large gas-turbine market (H-class, JAC-class 720MW), only Siemens Energy, GE Vernova, and MHI can manufacture at scale, with market shares around 35-35-30. 【Fact】 Surging AI data-center power demand, with the IEA estimating 950+ TWh of data-center electricity demand by 2030, double 2024, plus mature US natural-gas infrastructure, is bringing GTCC demand back toward the 2010-2014 cycle peak. Siemens Energy's 2024 orders rose +30%, and GE Vernova showed a similar pattern. MHI's GTCC orders at the Takasago plant are also growing rapidly, with FY2025 Energy Systems orders up +25%+ YoY.

• Nuclear revival + SMR second curve: domestic Japanese nuclear restarts, including 4-5 reactor restarts or new builds at Kansai / Chubu / Kyushu Electric, plus overseas SMR cooperation with Westinghouse and TerraPower, and high-temperature gas-cooled reactor R&D. 【Inference】 SMR commercialization after 2030 is a long-dated option, but MHI's decades of experience in nuclear PE/CE systems plus government support give it a substantive participation right.

• First-mover advantage across the hydrogen / ammonia value chain: MHI has positioned itself in hydrogen GTCC with Toyota / IHI, ammonia burners with Japanese utilities to advance 20% ammonia co-firing demonstrations, and offshore hydrogen transport vessels with JBIC. 【Inference】 This is a 2030+ story. It does not yet contribute profit, but continuing capex reflects long-termism.

• Heavy-industrial valuation re-rating + global capital reallocation toward Japanese trading houses / industrials: TSE PBR reform + yen-depreciation benefits + Buffett's holdings in Mitsubishi Corp. / Itochu and others have drawn foreign capital back to Japanese industry. 【Fact】 The Japan industrial index (Nikkei 225 Industrial) rose about +135% from 2022 to 2026, outperforming the S&P industrial index at +50%. MHI is the flagship name in this re-rating theme and has outperformed Siemens / GE Vernova over the same period by a wider margin.

5. Bear Case: A 40x P/E Valuation Has Already Priced in Most Upside, While Downside Risk Is Underestimated

【View + Inference】 The bear case concentrates on three fragilities: valuation, cycle, and policy:

• The 40x P/E valuation level is itself the bear argument: MHI's historical P/E is usually 12-18x. The current 37-40x TTM / 28x Forward already embeds the triple-best scenario of "continued defense expansion + sustained GTCC strength + margins expanding from 8.7% to 10%+." 【Inference】 If any one piece fails, whether defense-budget compression, GTCC order pullback, or persistent Plant & Infrastructure losses, valuation can revert quickly. Downside to ¥2,500, equivalent to 19x Forward P/E, is a reasonable reference.

• Japan's fiscal sustainability is a potential risk: Japan's government debt balance of JPY 1,300 trillion / GDP 220%+ is the highest globally. The FY2026 defense budget of JPY 9 trillion is equivalent to 1.9% of GDP, and pushing toward 2% means an additional fiscal burden of +JPY 0.5 trillion/year. 【Inference】 In 2027-2028, Japan may face a trade-off between "defense expansion vs fiscal sustainability." If the Bank of Japan exits ZIRP (zero interest rate policy) and government-bond yields rise, fiscal space will be squeezed and defense-budget expansion may slow.

• GTCC cycle peak + long-term LNG uncertainty: GTCC orders are essentially a bet on "long-term natural-gas availability + stable natural-gas prices." 【Inference】 US natural-gas infrastructure investment in the Permian, Marcellus, and LNG export capacity is limited. If long-term LNG prices return to 2022 highs seen early in the Russia-Ukraine war, GTCC economics weaken, while substitutes such as solar + storage + nuclear + SMR gain share. The final power structure for AI data centers will be mixed; GTCC will not dominate alone.

• Execution risk in Australia's Mogami mega-order: The AU$10 bn contract includes three phases: the first 3 ships built in Japan + the following 8 built in Australia. Technology transfer, local manufacturing, process standards, and the timetable all carry significant execution risk. 【Inference】 Historical analogues, such as Australia's Collins submarine and the dispute around France's Naval Group, suggest that 30-50% overruns and delays are common in large cross-border naval projects.

• Mitsubishi Group governance structure and cross-shareholdings: MHI has cross-shareholdings with Mitsubishi Corp., Mitsubishi UFJ Bank, Mitsubishi Electric, and other Mitsubishi Group members, alongside mutual governance within the group. 【Inference】 This provides stability but limits the pace of minority-shareholder value maximization, such as strategic asset divestitures or large share buybacks. Foreign funds may apply a governance discount.

• MRJ / SpaceJet legacy issues: MHI's civil aircraft MRJ / SpaceJet project received cumulative investment of about ¥1 trillion from 2008 to 2023 and was formally terminated in 2023-02. Compensation clauses, maintenance contracts, and impairment losses continue. 【Inference】 Although already reflected in historical financial statements, it signals that MHI's execution capability in innovative / high-risk new businesses is relatively limited.

• Yen appreciation risk: MHI's overseas revenue accounts for about 35-40%, including GTCC exports, civil-aircraft maintenance, chemical equipment, and logistics equipment. 【Inference】 If the yen appreciates from the current USD/JPY 153 to 130-140, driven by BOJ rate hikes + US rate cuts, dollar revenue reported in yen will fall 7-15%, compressing business margins by about 100-200 bps.

6. Pre-mortem: Plausible Scenarios in Which MHI Underperforms the Benchmark by 50% Over 3 Years

Scenario A: Japan defense budget peaks + GTCC orders pull back + valuation mean-reverts

• Trigger: in 2027-2028, Japan's fiscal-sustainability debate heats up -> defense expansion slows / no longer sets new highs / stays at the JPY 9 trillion level without further increase; GTCC orders fall after reaching this cycle's peak in 2027, as AI data-center power mix shifts toward solar + storage + SMR; foreign capital reassesses Japanese industrial valuations;

• Impact: FY2027-2028 business profit falls 5-10% instead of growing, from ¥540B to ¥500B; adjusted net income ¥350-400B; valuation compresses to 22-25x Forward -> share price returns to ¥2,200-2,500;

• Probability: 35% (base-case downside).

Scenario B: Australia Mogami project delay + reputation damage + loss of follow-on weapons-export orders

• Trigger: in 2028-2029, the Mogami project sees 30-50% cost overruns + first-ship delay of 1-2 years + quality / process problems in the Australia local-build phase; reputational damage causes potential customers such as India / the Philippines / Saudi Arabia to turn to South Korean / US systems; Japan's weapons-export dividend ends early;

• Impact: Aircraft, Defense & Space FY2028 revenue rises only +5-10%, versus prior expectations of +20-30%, and the market lowers the segment valuation; share price returns to ¥2,000-2,500;

• Probability: 20%.

Scenario C: Global industrial valuation crash + sharp yen appreciation + negative Mitsubishi Group governance news

• Trigger: in 2027-2028, a global recession causes broad industrial capex to decline + US rate cuts + Japanese rate hikes -> USD/JPY appreciates from 153 to 130 -> MHI's dollar revenue is hit. At the same time, negative Mitsubishi Group governance news emerges, such as improper accounting during a CFO's term / related-party transaction disputes, increasing the foreign-investor governance discount;

• Impact: revenue falls 10-15%, margins compress by 200bps -> net income ¥250 bn -> P/E 25x -> share price returns to ¥1,800-2,200;

• Probability: 15%.

【Inference】 The three downside scenarios have a cumulative probability of about 60%, and the 3-year cumulative probability that the share price underperforms the benchmark by 50% is about 40-45%. That is a relatively high downside-tail risk under a 40x P/E valuation. Meanwhile, the bull scenario of a share price above ¥5,000 has a probability of about 25-30%. The overall risk-reward skews neutral to slightly negative, so we recommend a "Watch" rating rather than "Buy."

7. Peer Comparison: MHI vs Siemens Energy vs GE Vernova vs the Kawasaki-IHI Triangle

【Fact + Inference】 Key comparison points:

• MHI is the largest of Japan's three major heavy-industrial groups: revenue is 2.4x Kawasaki and 3.2x IHI; backlog and margins are both meaningfully ahead;

• MHI's valuation is close to Siemens Energy but far below GE Vernova: Siemens Energy's business mix is the closest to MHI, with GTCC + grid, and its 38x P/E is almost identical to MHI's 37-40x; GE Vernova's 85x P/E reflects a "pure green / dollar asset / growth premium," making it less directly comparable to MHI;

• MHI vs Kawasaki vs IHI within Japan: MHI's valuation is significantly above Kawasaki's 18x, as Kawasaki has a smaller defense mix, a weaker motorcycle cycle, and slower overall growth. It is close to IHI's 35x, as IHI's aero engines benefit from AI data centers + aviation recovery, with a similar valuation premium;

• MHI's backlog multiple is the key difference: JPY 13.24 trillion / JPY 4.97 trillion revenue = 2.66x, slightly below Siemens Energy at 3.5x but above Kawasaki / IHI at 1.8-1.9x, giving strong visibility;

• Diversification vs pure energy: Siemens Energy / GE Vernova are pure energy + grid. MHI's diversification across defense + infrastructure + logistics is a double-edged sword: it smooths the cycle but lacks the valuation profile of a pure growth stock;

Practical choices for capital allocators:

• For pure GTCC + dollar assets + high growth premium: GE Vernova, expensive;

• For GTCC + euro exposure + wind + grid balance + limited defense exposure: Siemens Energy;

• For defense + GTCC + AI data centers + Japan dividend + weapons-export option: MHI, with the current valuation reasonable but already priced in;

• For cheap + low P/E + high dividend: Kawasaki Heavy Industries at 18x, though growth is slow;

• For aero engines + AI data centers: IHI, a cleaner exposure.

【View】MHI's current valuation already reflects the fair value of the three themes: Japanese industry + defense + GTCC. It is basically in line with peer Siemens Energy. To justify a "Buy," we would need to see: (1) defense expansion accelerating to 2% of GDP ahead of schedule; (2) 2-3 follow-on Mogami-scale new orders of USD 5-10 bn each after the current mega-order, from India / Indonesia / Saudi Arabia or similar; (3) GTCC orders sustaining +30% YoY for more than 2 quarters; (4) FY2026 business profit exceeding guidance by more than +30%. At least two conditions should be met before an upgrade becomes reasonable.

8. Longitudinal History: From Prewar Zaibatsu to Postwar Reorganization, the Lost 30 Years, and the Current Restart

Key timeline (using 10-for-1 split-adjusted prices):

【Fact】The share price rose 5-fold in 3 years, from ¥750 in 2023-03 to the 2026-04 peak near ~¥4,000. That is further alpha on top of the Japanese industrial index's +130% gain over the same period.

Longitudinal comparison against contemporaneous assets:

• vs Siemens Energy: from 2023-04 to today, SiE rose from €14 to €56 (+300%), while MHI rose +400% over the same period. MHI outperformed by 100bps, even though the fundamental narratives are similar, with Japan dividend + government binding bringing an additional premium;

• vs GE Vernova: GEV was spun out and listed independently in 2024-04, rising from $135 to about $370 in 2026-06 (+170%). MHI rose about +300% over the same period, a significant outperformance that reflects its proprietary "Japan valuation re-rating + weapons-export dividend" narrative;

• vs Nikkei 225: MHI +400% vs Nikkei +50%, showing very significant thematic-stock alpha;

• vs S&P 500: MHI, in USD terms, about +280% vs S&P +50%, showing clear cross-market alpha;

• vs Lockheed Martin / Northrop Grumman: US defense primes rose +30-50% over the same period, while MHI outperformed by 4-7x, reflecting the proprietary narrative of "Japan defense re-entering the stage."

【Inference】 Longitudinally, MHI is the flagship thematic stock for "Japan industry + defense + AI data centers." The current ¥3,700 already sits in the high range of the 3-year bull market. Over the next 12-18 months, it is likely to enter a phase of "high-level consolidation + earnings delivery." A further +50% upside requires new catalysts, such as a defense budget beat, a second Mogami-class export, or a GTCC cycle that beats expectations.

9. Investment Conclusion: Rating "Watch," Fair Buy Price JPY 3,000

【View + Inference】Rating: Watch (Hold/Monitor)

Rationale:

• The current valuation already prices in reasonable expectations for the three major themes: share price ¥3,699 / Forward P/E ~28x is at the highest historical level for Japanese industry and reflects a fair valuation for "Japan defense expansion + AI GTCC second spring + heavy-industrial re-rating";

• Downside risk is starting to surface: the -2.4% move on the day reflects market doubt about valuation / the pace of earnings delivery. At its core, this is "insufficient cushion at 40x P/E";

• Fundamentals remain sound, but near-term upside is limited: FY2025 set records and FY2026 guidance is solid, but +24.9% business-profit growth is already priced in;

• Near historical peak = caution signal: after a 5-fold gain over 3 years, the stock is entering a "high-level consolidation" stage and needs continued earnings delivery or new catalysts;

• Japan risk premium cannot be ignored: fiscal sustainability, yen volatility, and Mitsubishi Group governance characteristics together create a structural discount.

Fair buy price:JPY 3,000/share (lower end of the base band, 23x Forward P/E, relative to FY26 net-income expectation of ¥440 bn). This offers about +8% upside to the base midpoint of ¥3,250 and about +75% upside to the bullish midpoint of ¥5,250. Downside risk to the bearish midpoint of ¥2,150 is about -28%, improving the risk-reward to 2:1.

Triggers for an upgrade to "Overweight":

• Share price falls back to the JPY 2,800-3,100 range, requiring valuation normalization rather than fundamental deterioration;

• OR follow-on Mogami large orders from India / the Philippines / Saudi Arabia or similar are signed, at USD 5+ bn scale;

• OR GTCC orders sustain +40% YoY for more than 2 quarters + Energy Systems margin exceeds 12%;

• OR Japan's defense budget accelerates to reach 2% of GDP ahead of schedule (2027 vs the original fiscal 2027 plan);

• OR FY2026 business profit exceeds guidance by more than +30%, meaning > ¥700 bn.

Triggers for a downgrade to "Neutral" or "Avoid":

• Share price breaks above JPY 4,500 + Forward P/E exceeds 35x, detaching valuation from fundamentals;

• OR Japan's defense budget is compressed / growth slows to +1-2%;

• OR the Mogami project shows clear delays / quality issues;

• OR GTCC orders turn negative YoY + Energy Systems orders decline 20%+;

• OR the yen appreciates from USD/JPY 153 to < 135 and stays there;

• OR the Plant & Infrastructure segment remains loss-making, with deterioration deepening if operating losses continue for 2 consecutive quarters.

Target investor profile:

• Suitable for: (a) capital already bullish on Japan industry + defense expansion and seeking to extend from trading houses / banks into a purer industrial target; (b) investors willing to accept a P/E of 30-40x, a dual "thematic stock + cyclical stock" premium, in exchange for exposure to GTCC + defense + AI data centers; (c) long-term capital with a 3-5 year holding horizon and willingness to endure 30-40% drawdowns;

• Not suitable for: (a) value-oriented capital with a strict P/E < 20 requirement; (b) fast-in-fast-out strategies requiring short-term catalysts / quarterly EPS beats; (c) investors with zero tolerance for yen / Japan fiscal / Mitsubishi Group governance risk; (d) investors seeking pure green / pure defense / pure energy single-theme exposure, who should consider cleaner exposures such as GEV / LMT / SiE;

• Pair-trade suggestion: hold MHI + Kawasaki Heavy Industries (7012) as a two-position basket for "Japan defense + industry" exposure. MHI leans toward GTCC + large-scale defense, while Kawasaki leans toward motorcycles + small and medium defense + high-speed rail. A 70:30 ratio can reduce single-name risk.

10. Risk Warnings and Disclaimer

Key risks:

• Valuation-reversion risk: the current P/E of 37-40x is at the highest historical level for Japanese industry. Any earnings miss / thematic cooling / liquidity tightening could trigger a 30% correction;

• Japan fiscal-sustainability risk: government debt / GDP of 220%+ is the highest globally, and compressed fiscal space in 2027-2028 could slow defense expansion;

• Large-project execution risk: the Mogami Australia project (AU$10B) + other large GTCC / defense projects carry delay / cost-overrun risk, with 30-50% overruns common in historical analogues;

• Yen appreciation risk: overseas revenue is about 35-40%; USD/JPY moving from 153 to 130 would compress business margins by 100-200 bps;

• GTCC cycle-peak risk: this GTCC upcycle may peak in 2027-2028, requiring new catalysts such as SMR / hydrogen / nuclear power to fill the gap;

• MRJ legacy + innovative-business execution risk: MHI's execution capability in new areas such as civil aviation, electric aircraft, and new materials has been relatively average;

• Geopolitical risk: Japan is surrounded by China, North Korea, and Russia. Escalation in the Taiwan Strait / Korean Peninsula would benefit MHI in the short term but imply long-term risks to supply chains, shipping, and regional order;

• Corporate governance / Mitsubishi Group cross-shareholding discount: minority-shareholder value maximization is slower than at Western industrial giants with a pure performance orientation;

• Liquidity / overseas-investor limitations: MHI's Japanese listing, 7011.TSE, trades mainly on the Tokyo Stock Exchange. Overseas investors using the ADR (MHVYF on OTC Pink) face poor liquidity. EODHD price coverage is not yet available for the full .TSE exchange, so the detail page may price from the ADR or remain temporarily blank.

Research boundary: This report is based on Mitsubishi Heavy Industries' FY2025 consolidated financial statements (IFRS, year ended 2026-03-31), the 2026-05-11 FY2025 results release, the 2026-04-18 Mogami mega-order signing announcement, the 2025-08-05 Australia selection announcement, Japan MOD's FY2026 defense-budget announcement (cabinet approval on 2025-12-26 for ¥9.04T), and MHI IR historical financial data. Exchange rates use 2026-06 estimates of USD/JPY 153.5 and EUR/JPY 167. Report date: 2026-06-09.

Disclaimer: This report is based on public information and does not constitute investment advice. Markets carry risk; invest with caution.