IHI (7013) Q3 2026 earnings summary

Executive summary

• Orders reached a record ¥1,364.8 billion in Q3 FY2025, driven by strong nuclear energy and defense demand.

• Revenue declined 1.8% year-over-year to ¥1,129.3 billion, mainly due to prior large project completions and business divestitures.

• Operating profit remained stable at ¥102.5 billion, matching last year’s record high despite lower revenue and higher maintenance costs.

• Profit attributable to owners of parent hit a record high of ¥85.0 billion, aided by improved equity-method investment income and gains from divestitures.

• Structural reforms and business portfolio restructuring accelerated, including overseas energy business restructuring and multiple divestitures.

Financial highlights

• Orders up 12.4% year-over-year, especially in energy; aerospace orders declined due to prior large project.

• Revenue fell due to project timing and divestitures; aerospace revenue grew, led by defense.

• Operating profit stable year-over-year, with gains from divestitures offsetting energy segment weakness and restructuring costs.

• EBITDA for Q3 FY2025 was ¥158.7 billion (14.1% margin); cash flows from operating activities: −¥73.2 billion.

• Basic EPS for Q3 FY2025 was 80.21 Yen; equity ratio improved to 23.0%.

Outlook and guidance

• FY2025 order forecast revised upward to ¥1,940.0 billion (+¥90.0 billion), with revenue expected at ¥1,640.0 billion.

• Operating profit projected at ¥160.0 billion; profit attributable to owners of parent at ¥125.0–145.0 billion.

• Annual operating cash flow forecast at ¥100.0 billion, with significant Q4 inflows expected.

• Dividend forecast remains unchanged at ¥120.00 per share (post-stock split).

• Intensified structural reforms and risk mitigation planned for Q4.