IHI (7013) Q2 2027 earnings summary

Executive summary

• H1 revenue rose 9.2% YoY to ¥779.3bn; reported operating profit reached a record ¥114.9bn, including ¥42.6bn in property-sale gains.

• Operating profit excluding property gains and other temporary factors was ¥70.7bn, up ¥18.6bn YoY; civil aero engines and lifecycle businesses supported growth.

• Full-year forecasts for orders, revenue and profits were raised, alongside the annual dividend outlook.

Financial highlights

• Orders fell 12.8% YoY to ¥778.7bn, reflecting a high prior-year Energy project comparison; revenue increased ¥65.6bn to ¥779.3bn.

• Profit before tax was ¥122.7bn, up ¥48.0bn; profit attributable to owners of parent was ¥84.9bn, up ¥29.0bn.

• Operating cash flow was negative ¥65.0bn versus negative ¥57.1bn; free cash flow improved to negative ¥56.0bn from negative ¥80.1bn.

• Q2 EBITDA was ¥156.3bn; full-year EBITDA guidance increased ¥20.0bn to ¥350.0bn.

Outlook and guidance

• Full-year forecasts: orders ¥1,890.0bn, revenue ¥1,880.0bn, operating profit ¥270.0bn and attributable profit ¥185.0bn.

• Operating profit excluding the planned ¥93.0bn property-sale gain is forecast at ¥177.0bn, up ¥20.0bn from August guidance.

• EPS is forecast at ¥173.88, assuming ¥150/US$1 from Q3 onward; record-high earnings are targeted for a second consecutive year.

• Annual dividend guidance rose ¥2 to ¥25 per share: interim ¥11.50 and year-end ¥13.50.