Japan's Mitsubishi, Kawasaki report defence-led gains for 2025

MHI will supply upgraded Mogami-class frigates to the RAN under Australia's Sea 3000 general-purpose frigate programme. (Yuichi Yamazaki-Pool/Getty Images)

Japan's biggest defence manufacturers, Mitsubishi Heavy Industries (MHI) and Kawasaki Heavy Industries (KHI), have recorded major financial gains in fiscal year (FY) 2025, supported by strong defence-sector sales.

According to the FY 2025 financial results released by MHI on 12 May, the company has posted revenue of JPY4.9 trillion (USD31 billion) for FY 2025 and profit of JPY432 billion from business activities.

MHI's Aircraft, Defense & Space (ADS) business unit recorded FY 2025 revenue of about JPY1.4 trillion, an increase of around 35%, and profit of more than JPY151 billion, an increase of about 52%.

The firm has booked orders for “several large projects”, including Australia's general-purpose frigate programme, and is expecting the order intake to remain high in FY 2026, MHI said.

Revenue generated by MHI's space and defence sectors increased 40% year on year (YoY) due to “strong order intake from FY 2023 onward”, MHI said, adding that the company would continue to invest in production facilities and workforce expansion to execute more than JPY4 trillion in order backlog.

ADS revenue and business profit increased due to “steady progress in project execution”, MHI said.

The firm is forecasting its ADS unit to secure revenue of JPY1.5 trillion in FY 2026 with sales expected to increase primarily in defence aircraft and missile systems, MHI said. The unit's revenue is expected to grow 10% YoY and profit to grow more than 18% to JPY170 billion for FY 2026, it added.