IHI (7013) Q3 2026 earnings summary

Executive summary

• Achieved record-high Q3 orders, mainly from strong demand in the Energy Business and defense, especially nuclear energy.

• Profit attributable to owners of parent reached a record high for Q3, rising 10.7% to ¥85.0B, supported by improved equity-method investment profits, foreign exchange results, and gains from business transfers.

• Operating profit remained at last year's record Q3 level, declining 0.9% to ¥102.5B, impacted by higher maintenance costs, increased SG&A, and lower profitability in some overseas businesses.

• Revenue for the nine months ended December 31, 2025, decreased 1.8% year-over-year to ¥1,129.3B, mainly due to business transfers and a rebound from large-scale projects in the prior year.

• Several business portfolio reforms and divestitures were completed, including the transfer of multiple subsidiaries and integration of infrastructure businesses.

Financial highlights

• Q3 FY2025 orders: ¥1,364.8B (+12.4% YoY); revenue: ¥1,129.3B (−1.8% YoY); operating profit: ¥102.5B (−0.9% YoY); profit attributable to owners: ¥85.0B (+8.2B YoY).

• EBITDA: ¥158.7B (14.1% margin, +0.4pt YoY); cash flows from operating activities: −¥73.2B (−¥20.9B YoY).

• Basic EPS (Q3 FY2025): 80.21 Yen (post-stock split); full-year forecast: 117.49 Yen.

• Total assets increased to ¥2,454.4B, and equity attributable to owners rose to ¥563.7B.

• Gross profit for the nine months was ¥261.3B, down from ¥270.5B YoY.

Outlook and guidance

• FY2025 orders forecast revised upward to ¥1,940.0B (+¥90.0B); revenue expected at ¥1,640.0B (+0.8% YoY); operating profit at ¥160.0B (9.8% margin); profit attributable to owners at ¥125.0B.

• All major financial metrics for FY2025 are expected to reach record highs.

• Dividend forecast remains unchanged, with a full-year payout of ¥120.00 per share (post-stock split).

• Assumed FX rate for FY2025: 140 Yen/USD.