Mitsubishi Heavy Industries - Company Analysis and Outlook Report (2026)

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Mitsubishi Heavy Industries stands as Japan’s premier heavy industrial conglomerate, with operations spanning energy, infrastructure, and defense sectors. The company traces its lineage to 1884 and has been instrumental in Japan’s postwar industrial reconstruction.

Within the Aircraft, Defense & Space domain, MHI operates across three primary business areas. These include defense systems encompassing fighter aircraft assembly, missile production, and naval vessels.

Space systems focus on launch vehicle development and satellite technology. Commercial aviation activities center on component manufacturing and aftermarket support services.

The company’s defense operations have experienced remarkable growth. Revenue in this subsegment reached ¥419.3 billion in the first half of FY2025, reflecting steady backlog execution and increased government contracts.

MHI’s Aircraft, Defense & Space segment demonstrated robust financial performance through the first half of fiscal 2025. Revenue reached ¥538.8 billion, marking a substantial ¥107.1 billion increase year-over-year.

The defense and space subsegment drove this growth. Accelerated project execution on existing contracts contributed to the 26.8% revenue increase. Japan’s defense modernization programs fueled demand for MHI’s missile systems, fighter aircraft components, and naval platforms.

Commercial aviation operations also contributed positively. Boeing 787 deliveries increased during this period, though foreign exchange headwinds partially offset gains. The stronger yen relative to the U.S. dollar compressed margins on dollar-denominated contracts.

For the trailing twelve months, the Aircraft, Defense & Space segment generated approximately ¥1,350 billion in revenue based on full-year FY2025 projections. This represents a 31% increase from FY2024 actuals.

Business profit for the segment reached ¥60.3 billion in the first half, translating to an 11.2% margin. This exceeded the prior year’s 10.2% margin, demonstrating operational efficiency improvements despite inflationary pressures.

The segment’s order backlog stood at a robust level. While specific figures were not disclosed separately, management commentary indicated continued strong demand visibility extending into fiscal 2027 and beyond.

MHI serves as the prime contractor for F-35A Lightning II assembly in Japan. The company operates a Final Assembly and Check Out (FACO) facility in Nagoya that produces aircraft for Japan’s Air Self-Defense Force.

Through December 2025, MHI assembled 44 F-35A aircraft for Japanese forces. The production process involves integrating component kits supplied by Lockheed Martin and Japanese subcontractors. While not full indigenous production, the facility provides critical maintenance, repair, and overhaul capabilities for the region.

Japan plans to acquire a total of 147 F-35 variants. This includes 105 F-35A conventional takeoff and landing variants plus 42 F-35B short takeoff and vertical landing versions. The extended production run ensures steady workload through the early 2030s.

MHI represents Japan’s industrial partner in the trilateral Global Combat Air Programme. This collaboration between Japan, the United Kingdom, and Italy aims to develop a sixth-generation fighter aircraft for service entry by 2035.

The program established a formal joint venture in mid-2025. This entity will oversee design, development, and production of the next-generation platform. MHI brings expertise in composite structures, avionics integration, and systems engineering to the partnership.

Early planning envisions production of approximately 350 aircraft across all three partner nations. Japan’s acquisition requirement alone could reach 100 units, replacing aging F-2 fighters and supplementing F-35 operations. This represents a multi-decade revenue opportunity potentially exceeding $20 billion for MHI.

Technology development proceeds on schedule. A demonstrator aircraft should fly by 2027, with formal production decisions following successful flight testing. The program employs digital engineering methodologies to compress development timelines and reduce risk.

At the DSEI Japan 2025 exhibition, MHI unveiled its TX trainer aircraft concept. This two-seat, twin-engine subsonic jet would replace Japan’s aging Kawasaki T-4 trainer fleet.

The Japanese Ministry of Defense seeks a modern platform capable of preparing pilots for advanced fighters like the F-35 and future GCAP aircraft. The TX design incorporates contemporary avionics, advanced simulators, and systems representative of fifth and sixth-generation fighters.

Formal contracts for the trainer program were signed in January 2026 with MHI, Subaru, and Kawasaki Heavy Industries. The three companies will collaborate on development, with MHI likely serving as prime contractor given its fighter aircraft experience.

Production quantities could reach 50-70 aircraft over a 15-year period. Officials also consider the TX for export markets, representing Japan’s broader push to expand defense equipment transfers. Potential customers include Southeast Asian nations upgrading their pilot training infrastructure.

MHI manufactures multiple advanced missile systems for Japan’s Self-Defense Forces. The Type 12 surface-to-ship missile received substantial investment, with mass production contracts worth ¥25 billion awarded in October 2025.

The improved Type 12 extends range beyond 1,000 kilometers. This standoff capability addresses China’s growing naval presence in the East China Sea and Pacific. The missile can deploy from ground launchers, naval vessels, and aircraft, providing flexible deterrent options.

Testing of the land-based variant completed seven live-fire exercises in the United States through December 2025. Development of ship and air-launched versions continues, with operational deployment scheduled for fiscal 2026.

Japan also selected MHI for the Glide Phase Interceptor program. This joint U.S.-Japan initiative develops interceptors capable of defeating hypersonic missiles during their glide phase. The November 2024 contract valued at ¥56 billion ($368 million) funds prototype development through the early 2030s.

The interceptor addresses emerging threats from Chinese and Russian hypersonic weapons. Integration with Aegis-equipped destroyers and land-based systems will provide layered defense capabilities. Total program costs across both nations could exceed $3 billion.

MHI serves as prime contractor for Japan’s H3 rocket program in partnership with JAXA. The H3 replaces the H-IIA and H-IIB launch vehicles, offering improved performance at reduced cost.

The H3 successfully completed multiple missions in 2025. The rocket stands 63 meters tall and features configurations from two to three LE-9 main engines plus zero to four solid rocket boosters. Maximum payload capacity reaches 6.5 metric tons to geostationary transfer orbit.

However, the program experienced a setback in December 2025 when the H3 F8 mission suffered an upper stage anomaly. The rocket failed to correctly deploy a navigation satellite, marking the first failure after several successful flights.

MHI and JAXA immediately launched an investigation. Preliminary analysis suggests a potential issue with the second stage propulsion system. The next scheduled launch, H3 F9 carrying an Earth observation satellite, was postponed from February 2026 pending resolution.

Despite this challenge, the H3 program remains critical for Japan’s space ambitions. The rocket provides independent access to orbit for government and commercial payloads. Launch prices target approximately $70 million per mission, positioning H3 competitively against SpaceX’s Falcon 9 and other international providers.

Following the February 2023 cancellation of the SpaceJet program, MHI concentrated commercial aviation efforts on supporting the Canadair Regional Jet (CRJ) series. The company acquired the CRJ maintenance, support, and aftermarket business from Bombardier in 2020.

MHI RJ Aviation operates the world’s largest regional aircraft maintenance network. Facilities in Bridgeport, West Virginia, and Tucson, Arizona, provide comprehensive MRO services for the approximately 1,300 CRJ aircraft remaining in global service.

The CRJ business generates stable recurring revenue. With no new aircraft production, the installed base gradually declines. However, operators continue flying these efficient 50-100 seat jets on regional routes. Average aircraft age of 15-20 years creates sustained demand for heavy maintenance checks, component overhauls, and technical support.

Recent partnerships expanded the support network. In October 2025, L3Harris and MHIRJ signed an agreement to perform base maintenance on CRJ aircraft. This collaboration adds capacity and geographic coverage, particularly serving North American operators.

MHI manufactures major structural components for the Boeing 787 Dreamliner. The company produces complete main wing assemblies at its Nagoya facility, leveraging advanced composite manufacturing expertise.

Boeing 787 production rates recovered to approximately seven aircraft per month by late 2025. This represents significant improvement from the four to five monthly deliveries earlier in the year. However, rates remain below pre-pandemic levels of 12-14 aircraft monthly.

Higher Boeing production directly benefits MHI’s revenue. The first half of FY2025 saw increased 787 deliveries contributing to the ¥119.4 billion commercial aviation revenue. Management expects continued ramp-up through fiscal 2026 as Boeing addresses supply chain constraints.

Cost reduction initiatives also progressed. Boeing and MHI reached an agreement on efficiency improvements in wing production. Implementation of lean manufacturing principles, automation investments, and supply chain optimization should improve margins on 787 work packages.

MHI competes in distinct market segments against various international defense and aerospace companies. Understanding these competitive dynamics provides context for the company’s strategic positioning.

In fighter aircraft, MHI faces indirect competition from Lockheed Martin, Boeing, Dassault Aviation, and BAE Systems. While Japan’s domestic market remains relatively protected, international competitions for export contracts intensify.

The GCAP program positions MHI favorably for next-generation fighter development. Few companies worldwide possess the engineering resources and governmental support to develop sixth-generation platforms. BAE Systems (UK partner) and Leonardo (Italian partner) bring complementary capabilities to the collaboration.

Regional competitors include Korea Aerospace Industries, which developed the KF-21 Boramae fighter. This fourth-generation-plus aircraft targets similar markets as potential Japanese exports. However, KF-21 development encountered its own schedule delays and technical challenges.

The commercial launch market became intensely competitive. SpaceX dominates with its reusable Falcon 9 and Falcon Heavy vehicles, offering launch prices under $70 million with rapid cadence.

European competitor Ariane 6 entered service in 2024, though with limited flight history. China’s state-owned launch providers offer competitive pricing but face geopolitical restrictions in Western markets. India’s ISRO provides cost-effective launches primarily for domestic and friendly nation payloads.

H3’s competitive advantages include reliability (despite the December 2025 anomaly), Japanese manufacturing quality, and support for allies’ sensitive payloads. Nations reluctant to use Chinese launchers due to security concerns represent a viable market segment.

However, SpaceX’s reusability fundamentally changed launch economics. Unless H3 incorporates reuse in future variants, competing on price alone proves challenging. The rocket’s value proposition emphasizes reliability, schedule certainty, and strategic partnership benefits rather than lowest cost per kilogram.

In regional jet MRO, MHI competes with Embraer Services & Support, AAR Corp, ST Engineering, and various independent maintenance providers. The CRJ’s declining fleet size intensifies competition for maintenance contracts.

MHI’s advantages include original equipment manufacturer status, comprehensive technical data access, and established customer relationships. The company invested in hangar capacity and specialized tooling that smaller competitors lack.

For 787 component production, MHI operates within Boeing’s tightly integrated supply chain. Limited direct competition exists, as Boeing selected suppliers through long-term risk-sharing partnerships.

Performance issues or cost overruns could prompt Boeing to seek alternative sources, though changing suppliers for major structural components involves substantial complexity and expense.

In August 2025, Australia announced selection of MHI’s upgraded Mogami-class design for its General Purpose Frigate program. The contract value approaches $6.5 billion for up to 11 frigates.

This represents Japan’s largest defense export contract in the modern era. The deal reflects evolving Japanese security policy that now permits defense equipment transfers to allied nations under specific circumstances.

Contract finalization proceeds through early 2026. The first three vessels will undergo construction in Japan, with subsequent units potentially built in Australian shipyards. This industrial cooperation strengthens security ties between both nations while building Australian naval shipbuilding capability.

Technical specifications include a 32-cell vertical launch system, advanced radar systems, and extended range exceeding 10,000 nautical miles. The upgraded design incorporates Australian-specific requirements including different combat systems, sensors, and weapons integration.

The frigate program generates revenue over two decades. Initial construction of three Japanese-built ships spans 2026-2029. Australian production of remaining eight vessels extends through the 2030s. MHI also provides long-term maintenance, training, and technology transfer support.

Japan and the United States deepened defense industrial cooperation. In June 2024, Japan announced plans to begin servicing F-15 and F-16 fighters as early as 2025.

MHI and IHI will lead these maintenance activities. The initiative addresses U.S. Air Force capacity constraints while strengthening interoperability. Japanese facilities can service aircraft deployed in the Indo-Pacific region, reducing downtime and logistics costs.

This arrangement also accelerates technology sharing. Exposure to U.S. maintenance procedures and systems knowledge enhances Japanese expertise applicable to domestic programs including F-35 and future GCAP aircraft.

The companies target maintenance revenue of ¥50-80 billion annually from U.S. fighter support within five years. This diversifies revenue sources beyond domestic Japanese contracts while cementing strategic partnerships.

Japan fundamentally revised its defense export policies over the past several years. Previously, strict pacifist interpretations of the constitution prohibited most military equipment sales abroad.

Policy changes now permit exports to allied nations under specific conditions. Equipment must contribute to international peace and security. Recipient nations must demonstrate robust end-use controls. Japan’s government approves each transfer individually.

This evolution created opportunities for MHI. The Australia frigate contract demonstrates new possibilities. Other potential customers include Southeast Asian nations and Indo-Pacific partners concerned about Chinese military modernization.

The February 2023 SpaceJet cancellation freed substantial resources. MHI had invested approximately ¥1 trillion ($7.6 billion) in the regional jet program over 15 years without delivering a single aircraft to customers.

Following cancellation, the company reallocated engineering talent and manufacturing capacity toward defense programs and space initiatives. Facilities in Nagoya previously dedicated to SpaceJet now support defense production expansion.

This strategic pivot aligned with Japanese government priorities. Defense spending increases created immediate opportunities with higher returns than the challenging commercial aircraft market. Management indicated no plans to pursue another indigenous airliner program in the near term.

Aircraft, Defense & Space achieved an 11.2% business profit margin in the first half of FY2025. This exceeded the corporate target of 8% and represented improvement from the prior year’s 10.2% segment margin.

Several factors drove margin expansion. Defense contract execution improved as programs matured past development phases into production. Learning curve benefits reduced unit costs on missile systems and other serial production items. Price escalation clauses in multi-year contracts partially offset inflation.

Commercial aviation margins remained under pressure. Boeing 787 work packages operate at thin margins due to risk-sharing partnership structure. Foreign exchange volatility created additional uncertainty. CRJ support services generate higher margins but represent smaller overall revenue contribution.

Management targets sustained 12-13% margins for the defense subsegment. Achieving this requires continued operational excellence, favorable contract terms on new programs, and effective risk management on complex development initiatives like GCAP.

Defense and space programs require substantial capital investment. MHI committed approximately ¥80-100 billion annually to Aircraft, Defense & Space segment capital expenditures through fiscal 2027.

Major investment categories include production capacity expansion for missile systems and defense aircraft components. The company is increasing manufacturing floor space and adding specialized equipment to accommodate higher volume.

Digital transformation initiatives also consume capital. MHI invests in advanced manufacturing technologies including automated composite layup systems, digital thread capabilities connecting design through production, and predictive maintenance systems.

Space infrastructure represents another focus area. Launch vehicle production requires specialized facilities, test equipment, and quality assurance systems. H3 program capital needs remain elevated through the vehicle’s maturation period.

The Aircraft, Defense & Space segment maintains a robust order backlog. While specific segment figures were not disclosed, consolidated company backlog reached ¥11.5 trillion as of September 2025.

Defense contracts typically span multiple years. Long-cycle programs like fighter aircraft production, missile system development, and naval vessel construction provide revenue visibility extending 5-10 years forward.

The Australia frigate contract alone adds approximately $6.5 billion to backlog, with execution stretching into the late 2030s. GCAP development work, though still in early phases, represents billions in potential future revenue as the program advances.

This backlog provides stability amid global economic uncertainty. Unlike commercial aerospace, which experiences cyclical demand patterns, defense spending remains relatively steady. Japan’s commitment to reaching 2% of GDP in defense expenditure creates a rising budget baseline through 2027.

Foreign exchange exposure represents a significant risk. Approximately 30% of the segment’s revenue derives from dollar-denominated contracts, primarily Boeing 787 components and potential U.S. defense work.

The yen strengthened from ¥150 per dollar in mid-2024 to ¥145 by late 2025. This appreciation compressed margins on dollar revenues when translated to yen. Each ¥1 change in the exchange rate impacts annual segment profit by approximately ¥1-2 billion.

MHI employs hedging strategies to mitigate volatility. Forward contracts cover 60-70% of near-term dollar exposures. However, long-term programs extending 10-20 years remain exposed to cumulative exchange rate movements.

Trade policy uncertainties also warrant monitoring. U.S. tariff policies could affect aerospace supply chains. While defense programs typically receive exemptions, commercial aircraft components might face duties that erode competitiveness or complicate pricing negotiations with Boeing.

The GCAP sixth-generation fighter represents MHI’s most technically ambitious program. Developing advanced stealth, sensor fusion, artificial intelligence-enabled systems, and directed energy weapons pushes technological boundaries.

Multi-national collaboration adds complexity. Japan, the UK, and Italy must align requirements, work sharing, and development schedules across different military doctrines and industrial capabilities. Previous European collaborative programs like Eurofighter experienced significant delays and cost growth.

Scenario analysis suggests GCAP costs could escalate 30-50% above initial estimates. Service entry might slip from 2035 to 2037-2038. Such delays would compress the program’s financial returns and potentially force capability compromises.

The H3 launch vehicle’s December 2025 failure raises reliability concerns. Root cause analysis continues, but potential issues include second stage propulsion system anomalies or software failures. Resolving the problem requires extensive testing that delays the manifest.

A prolonged grounding affects MHI’s space business credibility. Customers might defer launches, reducing revenue. Insurance costs increase. Competing launch providers capture market share. Restoring confidence requires several consecutive successful missions.

Best case scenario: the anomaly traces to a correctable component failure with implemented design changes validated within 6 months. Launch operations resume by mid-2026 with minimal commercial impact.

Worst case scenario: the failure reveals fundamental design flaws requiring extensive redesign. The launch hiatus extends 18-24 months. Several customers cancel contracts. Program costs balloon while revenues stagnate.

Boeing 787 production rates directly affect MHI’s commercial aviation revenue. Current projections anticipate gradual increases toward 10 aircraft monthly by 2027. However, if demand softens or Boeing encounters additional quality issues, production could plateau or decline.

Reduced 787 rates would cost MHI approximately ¥2-3 billion in annual revenue for each monthly rate decrease. Partially mitigating this risk requires diversifying commercial work, though limited opportunities exist given SpaceJet cancellation and MHI’s strategic focus on defense.

Defense contract competition intensifies as global markets open. The Australia frigate selection demonstrated MHI’s capabilities, but future opportunities face strong international competitors. Losing major domestic contracts to foreign suppliers appears unlikely given Japanese government procurement preferences, but export deals remain highly competitive.

The CRJ installed fleet continues declining. Approximately 1,300 aircraft remain in service, down from a peak of 1,900. Airlines retire older jets as fuel efficiency becomes increasingly important and newer aircraft like Embraer’s E2 generation or Airbus A220 become available.

Accelerated retirements compress the CRJ support business timeline. Revenue could decline 10-15% annually in the late 2020s as operators phase out the type. MHI must maximize profitability during the remaining service life while avoiding over-investment in long-term capacity.

Rising tensions in the Taiwan Strait, South China Sea, and Korean Peninsula create both opportunities and risks. Increased threat perception drives Japanese defense spending higher, benefiting MHI’s order intake. However, actual conflict would devastate regional economies and disrupt supply chains.

A Taiwan contingency scenario would likely involve trade blockades, cyberattacks on industrial infrastructure, and potential kinetic action affecting Japanese territories. MHI’s facilities in Nagoya, Kobe, and other locations could face operational disruptions. Supply chains dependent on Asian subcontractors would fracture.

Such scenarios remain low probability but carry extreme consequences. MHI maintains business continuity planning and diversifies supplier networks where practical. However, complete insulation from regional conflict proves impossible for a Japan-based defense manufacturer.

Defense export policy could shift again. If Japan’s political leadership changes or public opinion turns against military equipment exports, programs like the Australia frigates might represent one-time opportunities rather than sustained business lines.

Continued export policy liberalization appears more likely than reversal. Strategic competition with China creates pressure for deeper defense cooperation with allied nations. Japan seeks to strengthen regional deterrence through capability building among partners.

Diversify supplier base where practical while maintaining MHI as prime contractor for critical platforms. Long-term dependency on single supplier creates vulnerability. Encourage partnerships with international firms on next-generation systems.

Structure contracts with clear performance milestones and cost controls. GCAP and other development programs carry substantial risk. Fixed-price elements for mature production items paired with cost-plus-incentive-fee arrangements for development work balances risk appropriately.

Accelerate digital engineering adoption across programs. Modern model-based systems engineering reduces development time and cost overruns. Require contractors to implement these methodologies as contract terms.

Plan for CRJ fleet retirement timelines. MHI’s support remains capable, but aircraft economics deteriorate as age increases. Evaluate transition strategies to newer regional jets over 5-7 year horizons.

Leverage competitive MRO marketplace. Multiple providers service CRJ aircraft now. Negotiate favorable pricing and terms with MHI by demonstrating credible alternatives while recognizing OEM advantages for complex maintenance.

Monitor Boeing 787 supply chain stability if operating Dreamliners. MHI’s role in wing production means any disruption at their facilities could affect Boeing delivery schedules and fleet plans.

Track GCAP program execution closely. Schedule adherence, cost performance, and technology demonstration milestones will signal whether the ambitious sixth-generation fighter remains viable. Early warning indicators include prototype flight delays beyond 2027 or requirements disputes between partner nations.

Assess Japan’s defense export trajectory through additional contract awards. If MHI wins further international competitions beyond Australia frigates within 2-3 years, export liberalization represents structural shift rather than one-time occurrence. Failure to secure additional deals suggests limited export potential.

Monitor H3 launch vehicle recovery progress. Restoration of flight operations and successful missions will determine whether the program can compete commercially. Extended grounding or additional failures might prompt Japanese government to reconsider space launch strategy.

Engage proactively with MHI on technology roadmaps. The company seeks innovative suppliers for advanced manufacturing, materials, and systems. Early involvement in program definition can secure long-term positions.

Understand MHI’s quality and reliability expectations. Defense and space applications demand rigorous standards exceeding typical commercial requirements. Invest in quality systems that meet aerospace industry standards.

Consider geographic presence in Japan or partnership with Japanese firms. Local content requirements exist for some programs. Supply chain resilience also drives preference for domestic or allied nation sources.

Focus R&D on hypersonic systems, autonomous platforms, AI-enabled decision support, and directed energy weapons. These represent priority capability areas where MHI seeks advanced solutions.

Propose dual-use technologies applicable to both defense and space domains. Budget constraints favor investments with multiple applications. Propulsion systems, advanced materials, and sensor technologies span military and civil space markets.

Demonstrate prototypes and technology readiness. MHI increasingly emphasizes de-risked solutions over paper studies. Hardware demonstrations substantially improve technology adoption prospects.

• MHI 1H FY2025 Financial Results Press Release (November 7, 2025)
• MHI 1H FY2025 Presentation Materials
• MHI Report 2025 - Aircraft, Defense & Space Segment
• MHI Financial Results Archive

• Australia Defence Ministry - Mogami Frigate Selection (August 5, 2025)
• Japan Defense Budget Approval FY2026 (December 26, 2025)
• JAXA H3 Launch Vehicle Program

• MHI TX Trainer Aircraft Unveiling - Jane’s (May 22, 2025)
• Japan Type-12 Missile Contracts (October 20, 2025)
• Global Combat Air Programme Progress - AIN (November 13, 2025)
• Glide Phase Interceptor Contract - The Diplomat (November 5, 2024)
• H3 Launch Vehicle Anomaly - Spaceflight Now (December 22, 2025)

• MHI RJ Aviation (CRJ Support)
• L3Harris-MHIRJ Collaboration (October 16, 2025)
• F-35 FACO Japan Operations

Mitsubishi Heavy Industries’ Aircraft, Defense & Space segment stands at a defining moment in its evolution. The cancellation of SpaceJet removed a significant liability and freed resources for more promising opportunities. Japan’s commitment to doubling defense spending to 2% of GDP creates a rare tailwind that few defense companies globally can match.

The segment’s transformation from a balanced commercial-defense portfolio to defense-dominant positioning aligns with market realities. Commercial aircraft development demands resources and risk tolerance that MHI cannot justify given Boeing and Airbus duopoly dominance. The CRJ support business provides stable cash flow during this transition without demanding major new investment.

Three programs will define MHI’s trajectory through 2030.

Management’s focus on operational excellence and margin expansion shows in recent results. The 11.2% business profit margin achieved in 1H FY2025 demonstrates improved execution on defense contracts. Sustaining these margins while absorbing development program risks will challenge the organization.

Currency volatility remains an underappreciated risk. With approximately 30% dollar exposure and limited natural hedges, exchange rate movements can significantly impact profitability. The 787 supply chain work generates thin margins that foreign exchange easily erodes.

The competitive environment intensifies, particularly for export opportunities. Established Western defense primes bring decades of international program experience that MHI lacks. Korean and other Asian competitors offer price advantages. Technology leadership on specific capabilities like hypersonic defense and advanced composites provides MHI’s differentiation.

For aviation industry stakeholders evaluating MHI, the company’s defense pivot appears strategically sound given market conditions. Execution challenges on ambitious development programs warrant close monitoring.

The growing order backlog and Japanese government support provide unusual revenue visibility compared to commercial aerospace volatility.

Stakeholders should expect continued segment growth through 2027, with long-term success dependent on delivering GCAP and expanding defense exports beyond Australia.