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(Bloomberg) — Mitsubishi Heavy Industries Ltd. shares jumped the most on record after the manufacturing conglomerate posted a 61% increase in quarterly profit, helped by strong sales of gas turbine engines.
The Japanese company reported a business profit of ¥83.5 billion ($572 million) for the three months ended June 30, according to a statement Tuesday, after selling six large-scale gas turbines in the US and Asia. That beat analyst estimates of ¥57 billion. Net sales were ¥1.1 trillion, slightly higher than what the market was looking for.
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Mitsubishi Heavy maintained its profit forecast of ¥350 billion for the fiscal year ending March 2025.
In its most recent mid-term management plan, Mitsubishi Heavy identified gas turbine engines, nuclear and defense as its core business segments with a goal of boosting revenue in those three areas by ¥1 trillion by the end of fiscal 2026. The company had a 46% share of the global market for large-scale turbines in 2023, and has seen strong demand from countries including the US and China.
Mitsubishi Heavy Chief Financial Officer Hisato Kozawa said both business profit and net income benefited from sound execution of the group’s large order backlog, as well as margin improvements and a weak yen.
For the first quarter, Mitsubishi Heavy’s aircraft, defense and space segment saw revenue rise by ¥66.2 billion to ¥211.7 billion
The company’s shares rose as much as 22.9% in intraday trade Tuesday. The stock has almost doubled this year on expectations around Mitsubishi Heavy’s energy and defense businesses.
Japanese markets more generally were recovering from a global equity selloff following the Nikkei’s biggest percentage fall of 12.4% on Monday, the most since Black Monday in 1987.
Kozawa said that he’s “hopeful” the market will stabilize but expects it to take some time.
—With assistance from Reina Sasaki.
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