IHI (7013) Investor Day 2026 summary

Medium- to longer-term direction and growth strategy

• Aims for step-change profit growth through disciplined investments, targeting a revenue CAGR of 5%+ from FY2025 to FY2035 and operating margin improvement from 10.1% in FY2025 to 15%+ by FY2035.

• Focuses on strengthening hard-to-replicate technologies, expanding growth businesses (civil aero engines, defense, nuclear energy), and driving stable profitability in lifecycle businesses.

• Strategic resource allocation to aerospace, energy, and infrastructure, with continuous business portfolio restructuring to align with market changes.

• Substantial increase in shareholder returns planned from Phase 2 (FY2029–FY2031) onward.

Technology and innovation strategy

• Prioritizes R&D in domains that create high entry barriers, such as advanced composite materials, ammonia combustion, and nuclear fuel reprocessing.

• Leverages over 170 years of technical expertise to develop unique technologies and processes, aiming to create new markets.

• Accelerates digital transformation and AI enablement to enhance technology development and production efficiency.

Business segment strategies

• Nuclear energy: Targets domestic growth via plant restarts and reprocessing, and overseas expansion by doubling production capacity to capture new build demand.

• Bridge business: Focuses on high-value-added projects and maintenance in North America and Europe, leveraging a strong global track record.

• Vehicular turbochargers: Capitalizes on the shift to HEVs, strict cost control, and strong OEM relationships to achieve high ROIC and profitability.

• Parking: Concentrates on large-scale mechanical systems in metropolitan areas, aiming for 20%+ ROIC by 2035 through LCB-driven cash flow.

• Civil aero engines and defense: Expands production and MRO capacity for 2nd generation engines, grows defense business in solid rocket motors and UUVs, and accelerates global expansion.