IHI upgrades FY2025 forecasts on record orders, strategic reforms

IHI Corporation reported strong financial results for the six months ended September 30, 2025, with profit attributable to owners of parent increasing by 16.6 billion yen to 55.9 billion yen, despite a slight dip in revenue to 713.6 billion yen. The company achieved record-high Q2 orders of 893.4 billion yen, a 17.5% increase year-on-year, propelled by demand in nuclear energy and defense systems. This performance led to an upward revision of the full-year FY2025 forecasts, with orders now expected at 1,850.0 billion yen, revenue at 1,640.0 billion yen, operating profit at 160.0 billion yen, and profit attributable to owners of parent at 125.0 billion yen, all projected to be record highs.

The company's strategic business reforms, outlined in "Group Management Policies 2023," are progressing as planned. Key initiatives include expanding growth businesses in aero engines and rockets, creating new value chains in green ammonia and satellite constellations, and enhancing profitability in conventional businesses. Several business transfers have been completed or are scheduled, including IHI Packaged Boiler, materials handling systems, turf care machinery, and concrete construction materials, with transport systems and weather/disaster prevention/space businesses slated for future transfers.

A significant stock split of 7-for-1 became effective October 1, 2025, which retroactively adjusted EPS figures. Basic earnings per share for the six-month period ended September 30, 2025, increased to 52.76 yen. IHI also announced an interim dividend of 70 yen per share, based on pre-stock split shares.