As the start of the second half of FY2026 begins, we spoke with Mitsubishi Electric President & CEO Uruma about Mitsubishi Electric Group’s current state and the key points he would like you to keep in mind.
1. How is the business performance for FY2026 so far?
In the first quarter results for FY2026, announced in July, both consolidated revenue and operating profit reached record highs for the first quarter. Overall, the first half of FY2026 delivered good results. While there were one-off effects such as the transfer of a subsidiary’s shares and favorable market conditions, I see this as the fruit of everyone’s efforts. That said, strong financial results do not mean everything is smooth sailing.
The business environment around us continues to change rapidly, driven by the advancement of AI, rising geopolitical risks, and increasingly complex social issues. Currently, uncertainty persists in the global economy and policies due to the impact of U.S. tariffs. While our Group has generally sought to pass on the additional U.S. tariff costs through product pricing, how these price increases will influence customer behavior remains uncertain. We must therefore continue to carefully monitor developments while moving forward with our businesses.
In this time of uncertainty, building a strong and lean management structure that can better withstand environmental changes requires more than just improving capital efficiency. Enhancing profitability by reducing selling and administrative expenses is also essential. If we don’t make changes, it will be very hard to stay competitive in a market that is becoming more and more intense.
One key point here is optimizing human resource structure across our businesses. In FY2025, we revamped our personnel compensation system, shifting certain job types to a job-based model and introducing mechanisms to appoint outstanding talent. However, to make full use of this system, we need to optimize our workforce composition.
2. Recently, Mitsubishi Electric announced the Next-Stage Support Program for Employees.
Mitsubishi Electric’s workforce in Japan has become significantly older. While this means we have the strength of “abundant experience,” sustaining long-term transformation presents challenges. It is therefore urgent that we gradually foster and promote the next generation of talent, pass on important responsibilities, and transform our workforce structure to support sustainable growth in the future.
As we advance human capital management, we are also working to strengthen employees’ career ownership. We believe it is important for each employee to seriously reflect on their career and feel satisfied and motivated in their work.
Considering that our company is undergoing a major period of transformation, we decided to implement the Next-Stage Support Program to provide contracted Mitsubishi Electric employees in Japan an opportunity to reassess their career. If they feel that continuing their career with Mitsubishi Electric brings happiness and a sense of purpose, we would very much like them to continue working with us. At the same time, we hope it also serves as a chance to consider other options.
Group companies will also streamline their organizational structures in human resources taking account of their individual circumstances, such as their business environment and regulatory environment.
Moreover, we hope this initiative will serve not only the eligible employees but also inspire younger generations to reflect on their careers. When each person reflects on and refines their career, they can take on new challenges. That strength will enable the Group as a whole to build a more robust management structure and transform into a vibrant, innovative company.
3. We sense that the Group’s structure has begun to change significantly as Mitsubishi Electric Group companies undergo restructuring. Can you tell us the background and objectives?
Our Group includes many companies that are vertically segmented by business domain. In some cases, administrative functions such as HR, accountings, and general affairs are duplicated across companies. This has become a challenge in improving operational efficiency and enhancing competitiveness. The recent restructuring of Mitsubishi Electric and Group companies has not been about simply reducing the number of affiliates. Rather, the goal is to establish a framework where Group companies can generate synergies functionally, thereby strengthening the Group as a whole.
Naturally, continued investment is also necessary for a company’s growth. To supplement missing components for enhancing competitiveness and expanding businesses, we will pursue acquisitions. For example, in September, we announced the full acquisition of Nozomi Networks to further strengthen Serendie-related businesses. By combining our strengths in the OT* domain with their cutting-edge OT security solutions, we will advance initiatives in “Circular Digital-Engineering.” This will allow us to, for instance, constantly monitor data traffic in factories and buildings to bolster defense against cyberattacks, while also offering new solutions for managing and utilizing data for customers. By leveraging secure data from Nozomi Networks’ diverse customer base, we will co-create new global services that accelerate Serendie-related businesses.
*Operational Technology
4. In June this year, you became Chairman of the Japan Electronics and Information Technology Industries Association (JEITA) and the Japan Electrical Manufacturers’ Association (JEMA). Have you gained any new insights through these external roles?
Through activities in such industry associations and Keidanren (Japan Business Federation), I have had more opportunities to engage in discussions with leaders from other companies. These interactions allow me to encounter different perspectives beyond our own industry, and I make a conscious effort to apply those experiences to our management.
At the same time, these external perspectives have made me realize that there is still a considerable distance between our headquarters and our Works. To become an innovative company, it is essential in product design and development to embrace risk, generate new ideas, and take on challenges. This is something I feel I must continue to emphasize to our engineers.