IHI (7013) Q4 2026 earnings summary

Executive summary

• Surging demand in Nuclear energy and Defense, along with robust Civil aero engines, drove order intake, revenue, and operating profit to record highs, offsetting structural transformation costs and business transfers.

• Net income reached an all-time high, aided by enhanced profitability, tax effects, and gains from asset disposals and business transfers.

• Major portfolio reforms included divestitures in Materials Handling, Turf Care, Packaged Boiler, Construction Materials, and partial equity transfer in Japan Marine United Corporation.

Financial highlights

• FY2025 orders: ¥1,954.7B (+¥203.6B YoY); revenue: ¥1,643.4B (+1.0% YoY); operating profit: ¥165.5B (+15.3% YoY, 10.1% margin); EBITDA: ¥241.8B (14.7% margin); net income: ¥160.9B (+42.8% YoY); EPS: ¥151.88 (+¥45.47 YoY, 7-for-1 stock split reflected).

• Cash flows from operating activities: ¥121.3B; cash and cash equivalents at year-end: ¥155.1B.

• ROIC: 11.0% (+0.5pt YoY); ROE: 28.4% (up from 26.3%).

• D/E ratio improved to 0.72x; equity ratio rose to 26.9%.

• Total assets increased to ¥2,428.6B; equity attributable to owners of parent rose to ¥652.2B.

Outlook and guidance

• FY2026 revenue forecast: ¥1,830.0B (+11.4% YoY); operating profit: ¥240.0B (+45.0% YoY, 13.1% margin); net income: ¥165.0B (+2.5% YoY); EPS: ¥155.09.

• Orders expected to decline to ¥1,760.0B due to rebound from large energy projects in FY2025, despite growth in Civil aero engines and Defense.

• Focus on upfront investments in Civil aero engines, Defense, Nuclear, and development-focus businesses (ammonia, space).

• Dividend forecast for FY2026/FY2027 is ¥23/share.

• Record revenue, operating profit, and net income projected for the third consecutive year.