Mitsubishi Heavy shares soar as turbine engine sales help profits – BNN Bloomberg

(Bloomberg) — Shares of Mitsubishi Heavy Industries Ltd. rose the most in history after the manufacturing giant reported a 61 percent jump in quarterly profit, helped by strong sales of gas turbine engines.

The Japanese company reported a business profit of 83.5 billion yen ($572 million) for the three months ended June 30, according to a statement Tuesday, after selling six large gas turbine units in the U.S. and Asia. That beat analysts’ estimates of 57 billion yen. Net sales were 1.1 trillion yen, slightly above market expectations.

Mitsubishi Heavy maintained its profit forecast of 350 billion yen for the fiscal year ending March 2025.

In its latest mid-term management plan, Mitsubishi Heavy identified gas turbine engines, nuclear power and defense as its core business segments, targeting to increase revenue from the three areas by 1 trillion yen by the end of fiscal 2026. The company had a 46% share of the global large-scale turbine market in 2023 and saw strong demand from countries such as the U.S. and China.

Mitsubishi Heavy Chief Financial Officer Hisato Kozawa said the company’s profit and net income were boosted by the solid execution of the group’s large order backlog, as well as improved margins and a weak yen.

Mitsubishi Heavy’s Aircraft, Defense and Space segment saw revenue rise ¥66.2 billion to ¥211.7 billion in the first quarter

The company’s shares rose 22.9% in intraday trading Tuesday. The stock has nearly doubled this year on expectations for Mitsubishi Heavy’s energy and defense business.

Japanese markets were broadly recovering from a global sell-off in stocks that followed the Nikkei’s biggest fall of 12.4% on Monday, its biggest drop since Black Monday in 1987.

Kozawa said he is “hopeful” the market will stabilize, but believes it will take some time.

–With assistance from Reina Sasaki.