IHI boosts full-year forecasts on strong demand, strategic reforms

IHI Corporation announced a significant upward revision to its consolidated financial forecasts for the fiscal year ending March 31, 2026, anticipating record highs across orders received, revenue, operating profit, and profit attributable to owners of parent. The revised forecast projects orders received of 1,850.0 bn yen, revenue of 1,640.0 bn yen, operating profit of 160.0 bn yen, and profit attributable to owners of parent of 125.0 bn yen. This revision reflects strong demand in nuclear energy and defense systems, as well as steady growth in civil aero engines.

For the second quarter of fiscal year 2025, IHI reported orders received of 893.4 bn yen, a substantial increase of 133.2 bn yen year-on-year. Despite a decline in revenue to 713.6 bn yen and operating profit to 69.4 bn yen, profit attributable to owners of parent rose to 55.9 bn yen, primarily due to favorable foreign exchange and improved tax expenses. Cash flows from operating activities, however, showed a deficit of 57.1 bn yen.

The company is progressing with business portfolio reforms, including the transfer of shares in IHI Packaged Boiler Co., Ltd., and Niigata Transys Co., Ltd., which are expected to enhance profitability and efficiency. The "Aero Engine, Space and Defense" segment is particularly strong, with revenue forecast to exceed 1 trillion yen by the early 2030s and an operating margin of 15-20%, bolstered by increasing demand for civil aero engines and defense systems.