IHI (7013) Q4 2024 earnings summary

Executive summary

• FY2023 operating loss was ¥70.1B, including ¥174.3B in special-factor impacts; excluding special factors, operating profit was ¥104.2B, up ¥22.2B YoY.

• Passenger-demand recovery, defense expansion and lifecycle-business growth supported underlying performance; PW1100G-JM inspection costs and litigation settlement drove reported losses.

Financial highlights

• Orders received rose 0.8% to ¥1,376.8B; reported revenue was ¥1,322.6B, while revenue excluding special factors was ¥1,493.2B, up 10.4% YoY.

• Operating loss was ¥70.1B and loss attributable to owners of parent was ¥68.2B; excluding special factors, operating profit was ¥104.2B, up 27.2% YoY.

• Operating cash flow was ¥62.1B, investing cash outflow ¥51.7B and free cash flow ¥10.4B.

Outlook and guidance

• Next-year forecasts: orders ¥1,720.0B, revenue ¥1,600.0B, operating profit ¥110.0B, profit before tax ¥100.0B and profit attributable to owners of parent ¥60.0B.

• EBITDA is forecast at ¥180.0B, operating cash flow at ¥75.0B, investing cash flow at negative ¥90.0B and free cash flow at negative ¥15.0B.

• Forecast dividend is ¥100 per share; assumed exchange rate is ¥140 per US dollar, with ¥1.4B operating-profit sensitivity per ¥1 move, excluding PW1100G inspection impacts.