Japan's major defense contractors have seen a 15% increase in their order backlogs compared to the previous year, fueled by the cabinet's defense capability enhancement policies aimed at achieving a "nation capable of going to war," the Nikkei newspaper reported on the 13th.

According to Nikkei, the combined defense business order backlogs for Japan's three major heavy industries – Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI – for the fiscal year 2025 (April 2025 to March 2026) totaled 6.25 trillion yen (approximately 59.4 trillion won), a 15% increase from the previous year.

The Japanese Ministry of Defense revealed related equipment to local government officials at the Kengun Garrison of the Ground Self-Defense Force in Kumamoto City, ahead of the deployment of long-range missiles, a key element of its "counterstrike capability" (ability to attack enemy bases). [Yonhap News]  

Mitsubishi Heavy Industries announced that its net profit for the next fiscal year is projected to increase by 14% to 380 billion yen (approximately 3.6 trillion won), with sales increasing by 9% to 5.4 trillion yen (approximately 51.3 trillion won) compared to the previous year.

Growth in the defense sector, including missile, destroyer, and tank manufacturing, is expected to be significant, in addition to its core gas turbine business.

The company's revenue from its aerospace, defense, and space business for the next fiscal year is projected to reach 1.5 trillion yen (approximately 14.2 trillion won), an 8% increase from the previous year.

Seiji Ito, President of Mitsubishi Heavy Industries, stated at a financial results briefing, "Our stance as a manufacturer to strive in response to national requests remains unchanged."

Kawasaki Heavy Industries' revenue for the next fiscal year is expected to increase by 11% compared to the previous year, with its aerospace systems business, accounting for 30% of total revenue, projected to grow by 17%.

Furthermore, IHI, which manufactures rocket motors for missile payloads and aircraft engines, forecasts a 32% increase in revenue for the next fiscal year.

The Japanese government has recently revised its three principles on the transfer of defense equipment, generally permitting the export of lethal weapons and actively exploring opportunities to export weapons to friendly nations such as Australia and New Zealand.

Hiroshi Ide, President of IHI, expressed confidence that order backlogs in the defense industry are likely to increase further due to the arms export liberalization policy, stating, "While there are still uncertainties about whether exports will expand, I believe they will increase."

IHI manufactures aircraft engines, which are considered dual-use items (materials that can be utilized for both military and civilian purposes), and is constructing a factory in Tomioka City, Gunma Prefecture, with a target completion of 2028 to produce rocket motors used in air defense missiles for the Ground, Maritime, and Air Self-Defense Forces.

Mitsubishi Heavy Industries also plans to increase its workforce in the aerospace, defense, and space sectors from 7,868 employees in 2024 to approximately 10,000 this year to meet the growing demand in the defense industry.