Mitsubishi Raises Net Income Forecast to ¥1.2 Trillion, Approves Buyback
Key Facts
On November 4, Mitsubishi Corporation raised its forecast for net income attributable to owners of the company for the fiscal year ending March 31, 2027, to ¥1.2 trillion from ¥1.1 trillion in its previous estimate. The company said its core operating cash flow forecast also increased to ¥1.38 trillion from ¥1.25 trillion. It added that both revised estimates are expected to reach record levels. The announcement coincided with the company’s approval of a share buyback program capped at ¥1 trillion. Mitsubishi linked its forecast revisions to higher expected earnings in the energy and mineral resources segments, while the buyback program adds shareholder returns to its financial decisions.
Net income attributable to owners of the company was ¥619.696 billion in the six months ended September 30, 2026, compared with ¥355.796 billion in the same period of 2025, an annual increase of 74.2%. The first-half result shows earnings widening from a year earlier, while the company raised its estimate for the full fiscal year. Adjusted net income was ¥539.1 billion in the first half, compared with ¥314.8 billion a year earlier, an increase of ¥225 billion. In its breakdown of the annual change in adjusted net income, the company recorded a positive impact of ¥85 billion from commodity prices and ¥32 billion from foreign exchange. Other factors by segment added ¥108 billion to the change, according to the results presentation.
Mitsubishi attributed its higher annual forecast mainly to higher expected earnings in the Energy Solutions and Power Solutions and Mineral Resources segments, supported by favorable market conditions. Core operating cash flow in the first half rose to ¥728.1 billion from ¥446.3 billion in the same period of 2025, an increase of ¥281.8 billion. The company said the improvement was tied to earnings growth after excluding depreciation and gains and losses on investments and assets. Revenue was also ¥10.410 trillion in the six months ended September 30, an annual increase of 20.5%, which the company attributed to higher market prices. These indicators place earnings growth and operating cash flow at the center of the revised estimates, alongside contributions from commodity prices, foreign exchange and segment-specific factors.
By contrast, free cash flow was negative ¥136.7 billion in the first half, compared with positive cash flow of ¥229.2 billion a year earlier. Cash and cash equivalents stood at ¥1.484 trillion on September 30, down ¥357.5 billion from March 31, 2026. The company attributed the decline to investment cash flows, mainly related to the acquisition of U.S. shale gas businesses and Chiyoda’s transition to an equity-method affiliate. It said proceeds from the sale of Toyo Tire shares contributed to inflows during the period. These figures highlight a divergence between growth in core operating cash flow and declines in free cash flow and available cash compared with the end of the fiscal year.
The buyback program covers the purchase of up to 420 million common shares, for a total amount not exceeding ¥1 trillion. The company set the planned execution period on the Tokyo Stock Exchange from November 5, 2026, to July 31, 2027. It also announced plans to cancel the shares it repurchases on August 31, 2027. On dividends, Mitsubishi kept its expected annual distribution at ¥125 per share for fiscal 2026. It raised its fiscal-year return on equity estimate to 12.7% from 11.5%, and said it expects to reach the 2027 Corporate Strategy target of 12% or higher ahead of schedule through earnings growth and flexible capital management.
Mitsubishi shares rose 3.9% to ¥4,957 on November 4, following the results and buyback announcement, according to Investing.com data. The company set November 5, 2026, for an investor relations meeting on its financial results and said the meeting’s content would be published on its website afterward. The meeting follows the announcement of higher forecasts for net income and core operating cash flow for the fiscal year ending March 31, 2027. The company has also set a timetable for buying back and canceling shares, running from November 2026 through August 2027. Mitsubishi’s announcements center on improved financial estimates, the earnings sources it cited for the revisions, and a plan to return capital to shareholders.