IHI (7013) Q4 2025 earnings summary

Executive summary

• Achieved record highs in orders received, revenue, operating profit, and profit attributable to owners, driven by strong Civil aero engines and Defense systems performance, with revenue rising 23.0% year-over-year to ¥1,626.8 billion.

• Operating profit reached ¥143.5 billion, a turnaround from a ¥70.1 billion loss last year, despite costs from business reforms and improper conduct.

• Operating cash flow surged, aided by tax refunds and working capital improvements.

• Orders received increased 27.2% to ¥1,751.1 billion, reflecting recovery from prior-year decreases.

• Significant business portfolio reforms included agreements to transfer Materials Handling System and Concrete Construction Materials businesses.

Financial highlights

• FY2024 revenue: 1,626.8 billion yen (+23.0% year-over-year); operating profit: 143.5 billion yen (+213.6 billion yen); EBITDA: 215.6 billion yen (+215.0 billion yen); net profit: 112.7 billion yen (+180.9 billion yen).

• ROIC improved to 10.5% (+15.4pt); ROE at 26.3% (+43.2pt).

• Cash flow from operating activities: 177.6 billion yen (+115.5 billion yen year-over-year).

• Dividend per share for FY2024: 120 yen; FY2025 planned: 140 yen.

• Total assets rose to ¥2,240.4 billion, equity increased to ¥508.7 billion, and equity ratio improved to 21.5%.

Outlook and guidance

• FY2025 revenue forecast: 1,650.0 billion yen (+23.1 billion yen); operating profit: 150.0 billion yen (+6.4 billion yen); EBITDA: 220.0 billion yen.

• Net profit forecast: 120.0 billion yen; ROIC: 9.9%; ROE: 23.0%.

• Dividend payout planned at 140 yen per share for FY2025.

• Focus remains on growth in aero engines, rockets, and clean energy, with continued business portfolio reforms and capital allocation to high-potential areas.

• Operating profit to remain stable despite 20.0 billion yen impact from tariffs and restructuring.