IHI (7013) Q2 2025 earnings summary

Executive summary

• Orders received reached JPY 760.2 billion (up 58.3% YoY), with revenue at JPY 757.4 billion for Q2 FY2024 and operating profit at JPY 77.2 billion, driven by strong civil aero engines and defense business performance.

• Civil aero engines remained the main profit driver, with record profits in all categories and robust spare parts sales.

• Operating profit margin reached 10.2%, significantly higher year-over-year.

• Cash flow from operating activities improved significantly due to EBITDA growth and better working capital management.

• Upward revision of full-year operating profit forecast by JPY 35 billion to JPY 145 billion, driven by robust aero engine performance.

Financial highlights

• Operating profit rose from JPY 16 billion in Q2 last year to JPY 77.2 billion this year, excluding special factors.

• EBITDA reached 112.3 billion yen, up 61.9 billion yen year-over-year.

• Profit attributable to owners of parent increased to 39.3 billion yen, up 27.2 billion yen year-over-year.

• Debt-to-equity ratio improved to 1.36x and equity ratio to 19.3%.

• Cash flow from operating activities improved by 74.0 billion yen year-over-year, reaching -7.4 billion yen.

Outlook and guidance

• Full-year operating profit forecast raised to JPY 145 billion, with revenue forecast maintained at JPY 1,600.0 billion and orders at JPY 1,720.0 billion.

• Year-end dividend forecast increased from JPY 50 to JPY 70 per share.

• FX assumption for H2 remains at JPY 140/USD; each JPY 1 move impacts operating profit by JPY 700 million.

• Profit attributable to owners of parent forecast at 85.0 billion yen; EBITDA forecast at 215.0 billion yen.

• Cash flow from operating activities forecast unchanged at 75.0 billion yen.