MHI climbs 5% after first ever warship export deal
Australia’s Deputy Prime Minister and Minister for Defence Richard Marles and Japan’s Minister of Defense Koizumi Shinjiro recently posed for a photo with Eisaku Ito, President and CEO of Mitsubishi Heavy Industries, before signing a contract for Japan to deliver the first three Mogami-class warships in Melbourne on April 18, 2026. This deal is part of Australia’s effort to bolster its long-range firepower to deter China, with Canberra committing up to AU$20 billion towards a fleet of 11 general purpose frigates, the first three of which will be built by Mitsubishi Heavy Industries (MHI).
The new warships, based on the upgraded Mogami-class frigate, will replace the current ANZAC-class in the Australian Navy, which has been in service since the 1980s. MHI secured the deal over German rival ThyssenKrupp Marine Systems. Japan has indicated that Australia may receive the first upgraded warship before Japan’s own navy, giving MHI the edge in the AU$10 billion contest.
According to reports, other companies involved in the deal include NEC Corporation, Mitsubishi Electric, and Hitachi, which will provide radar, antenna, and other systems for the ships. Shares of Mitsubishi Electric saw a 3.64% increase, while Hitachi experienced a smaller gain of 0.8%. NEC shares, on the other hand, slipped by 0.6%.
In its recently released National Defence Strategy, Australia noted that China’s growing national power and military capabilities will play a significant role in security dynamics in the Indo-Pacific region. The report highlighted Beijing’s continued prosecution of maritime and territorial claims in the South and East China Sea, often using the People’s Liberation Army and China Coast Guard. The PLA’s intercepts of foreign military vessels and aircraft in international waters and airspace are becoming more frequent and, at times, unsafe and unprofessional.
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