IHI (7013) Q2 2025 earnings summary

Executive summary

• Achieved record high second-quarter profit, driven by strong Civil aero engines, Defense, and large-scale power projects, with revenue for the six months rising 61.1% year-over-year to ¥757.4 billion.

• Operating profit surged to ¥77.2 billion, rebounding from a prior-year loss, with profit attributable to owners of parent at ¥39.3 billion.

• Orders received rose 58.3% year-over-year to ¥760.2 billion, reflecting a rebound from temporary decreases in the prior period.

• Significant improvement in cash flows from operating activities, mainly due to EBITDA growth and construction payment collections.

• Previous year’s results were impacted by one-time losses related to engine inspections and litigation settlements.

Financial highlights

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

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

• Gross profit for the period was ¥183.8 billion, up from a loss of ¥53.6 billion year-over-year.

• Basic earnings per share improved to ¥259.71 from a loss of ¥909.25 in the prior year.

• Total assets increased to ¥2,109.9 billion, with equity attributable to owners of parent rising to ¥406.3 billion.

Outlook and guidance

• Full-year operating profit forecast revised upward to ¥145.0 billion, a record high, with revenue forecast at ¥1,600.0 billion and profit attributable to owners of parent at ¥85.0 billion.

• Annual dividend forecast raised to ¥120 per share, with year-end dividend increased from ¥50 to ¥70 per share.

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

• Management highlights ongoing uncertainty in the global economy, including risks from China’s real estate market, geopolitical tensions, and currency fluctuations.

• Strategic focus on growth in aero engines, space, and clean energy, with continued business portfolio reforms.