IHI Operating Profit Jumps 65.6% to ¥114.979 Billion in First Half
Key Facts
IHI said operating profit reached ¥114.979 billion in the six months ended September 30, 2026, up 65.6% year on year, according to its consolidated financial results. Revenue rose 9.2% to ¥779.3 billion over the same period. By contrast, orders received fell 12.8% to ¥778.7 billion, compared with ¥893.4 billion in the same period a year earlier. The results show simultaneous growth in revenue and profit, alongside a decline in the value of new orders recorded in the first half. The company also revised its forecast for the fiscal year ending March 31, 2027, including raising its operating profit forecast to ¥270.0 billion.
IHI said higher revenue was partly linked to the expansion of growth businesses, including civil aircraft engines, defense and nuclear energy. Revenue was ¥779.3 billion, up 9.2% year on year. The company attributed the increase in operating profit to stronger demand for civil aircraft engines, expansion of lifecycle businesses and a gain from the sale of real estate. It added that operating profit rose by ¥45.5 billion to ¥114.9 billion, according to its explanation of the period's results. The lifecycle businesses it cited included expansion in carbon solutions and domestic energy systems.
Orders received moved in the opposite direction from revenue and profit growth, falling to ¥778.7 billion from ¥893.4 billion in the same six-month period a year earlier. That represented a 12.8% annual decline, according to company data. In its revised forecast for the fiscal year ending March 2027, IHI put orders received at ¥1,890.0 billion. It set its revenue forecast at ¥1,880.0 billion and operating profit at ¥270.0 billion. It also forecast profit attributable to owners of the parent of ¥185.0 billion.
Against the backdrop of its aviation outlook, the company said global demand for aircraft is expected to increase and demand for aftermarket services is steadily expanding. It pointed to growth in this demand in the context of its results, which included higher demand for civil aircraft engines as one factor supporting operating profit. It also forecast growth in demand for domestic defense programs alongside an increase in the defense budget. These expectations bring together growth drivers cited by the company in aviation and defense with a decline in total orders received in the first half. The results did not cite share-price movements or investor concerns as a cause of the decline.
Among upcoming dates listed by the company, it will submit its semiannual securities report on November 9, 2026. It also set December 4, 2026, as the start date for payment of interim dividends. These dates follow the release of results for the six months ended September 30, 2026, which included a revision to the full-year forecast. The revised forecasts cover profit, revenue, orders received and profit attributable to owners of the parent. These figures provide a framework for tracking the company's performance through the end of its fiscal year on March 31, 2027.