Slide 1: Financial Results for FY2025 (IFRS)
Financial Results for FY2025 (IFRS) (For the Year Ended March 31, 2026) May 8, 2026 Managing Executive Officer In Charge of Group Finance & Accounting Hiromi Oshima © IHI Corporation All Rights Reserved.
Slide 2: Table of Contents
Table of Contents 1. Highlights 2. Consolidated Results for FY2025 3. Forecasts of Consolidated Results for FY2026 4. Capital Allocation Plan (FY2026-FY2028) 5. Appendix Note 1: Figures for each item are rounded down to the nearest 0.1 billion yen. Note 2: Segment abbreviations used in the text are
Slide 3: Highlights
Highlights Results for FY2025 Summary • Surging demand in Nuclear energy business propels order intake to historic peaks of • Record Revenue and Operating profit achieved as growth in Defense and Nuclear businesses and business asset disposals effectively offsets structural transformation costs resu
Slide 4: Consolidated Results for FY2025
Consolidated Results for FY2025 © IHI Corporation All Rights Reserved. 4
Slide 5: Results of Group Management Policies 2023
Consolidated Results for FY2025 Results of Group Management Policies 2023 • Operating margin and ROIC targets achieved ahead of plan, but CCC remains unmet and cash generation is still a challenge • Delivering record-high Revenue and Operating profit results with robust EPS growth Expansion of Reven
Slide 6: Overview of Financial Results
Consolidated Results for FY2025 Overview of Financial Results • Significant revenue and profit growth driven by Civil aero engines, Defense, and Nuclear energy, supported by asset disposals and tax effects • Record highs across Orders, Revenue, Operating profit, Profit before tax and Profit attribut
Slide 7: Factors of Change in Operating Profit (Group-Wide)
Consolidated Results for FY2025 Factors of Change in Operating Profit (Group-Wide) • Executed thorough business reformation primarily in the overseas Energy business which is facing profit deterioration • Overall operating profit reached a record-high, driven by profit improvement in other businesse
Slide 8: Factors of Change in Operating Profit (Aerospace Segment)
Consolidated Results for FY2025 Factors of Change in Operating Profit (Aerospace Segment) • The aftermarket business in the Civil aero engines continued to expand steadily, with delayed maintenance cost recognition from previous FY • Despite increasing profit in the Defense business, upfront investm
Slide 9: Financial Position
Consolidated Results for FY2025 Financial Postion • The D/E ratio and the Ratio of equity attributable to owners of parent improved, reflecting profit accumulation and repayment of interest-bearing liabilities • CCC and ROIC continue to improve, despite an increase in total assets in line with busin
Slide 10: Forecasts of Consolidated Results for FY2026
Forecasts of Consolidated Results for FY2026 © IHI Corporation All Rights Reserved. 10
Slide 11: Performance Outlooks
Forecasts of Consolidated Results for FY2026 Performance Outlooks • Civil aero engines and Defense posted higher orders, yet overall orders are expected to fall as orders in the Energy business decline due to large projects rebound • Significant Revenue and Operating profit expansion driven by Civil
Slide 12: Factors of Change in Revenue (Group-Wide)
Forecasts of Consolidated Results for FY2026 Factors of Change in Revenue (Group-Wide) • Orders: The Civil aero engines business is expected to expand steadily, while expected declines in the Energy business due to a rebound from large projects in the previous year • Revenue: Expected to reach a rec
Slide 13: Factors of Change in Operating Profit (Group-Wide)
Forecasts of Consolidated Results for FY2026 Factors of Change in Operating Profit (Group-Wide) • Record-high profit is expected, supported by significant profit in Aerospace segment and Energy segment as well as asset disposals, even after factoring in buffers for geopolitical risks and structural
Slide 14: Factors of Change in Operating Profit (Aerospace Segment)
Forecasts of Consolidated Results for FY2026 Factors of Change in Operating Profit (Aerospace Segment) • Profit is expected to increase significantly as the Civil aero engines and Defense businesses grow steadily • Higher install engine sales volumes are expected to contribute substantially to futur
Slide 15: Business Portfolio Reform
Business Portfolio Reform • Executed decisive portfolio reforms via introducing external capital and liquidations to enhance profitability and capital efficiency Publication Business Overview date • Completed transfer 100% shares of IHI PACKAGED BOILER CO.,LTD. to TAKUMA CO., LTD. Oct.28, 2024 Packa
Slide 16: Capital Allocation Plan (FY2026-FY2028)
Capital Allocation Plan (FY2026-FY2028) © IHI Corporation All Rights Reserved. 16
Slide 17: Capital Allocation Plan (FY2026-FY2028)
Capital Allocation Plan (FY2026-FY2028) • Over the next three years, prioritizing capital allocation toward Civil aero engines, Defense, and Nuclear energy with strong mid-to-long-term growth potential, as well as to Development- focus Businesses as new growth-platform • Targeting significant profit
Slide 18: Shareholder Returns
Shareholder Returns • Shareholder returns policy aims to balance stable dividend growth with prudent financial discipline ＜Trend in dividends per share＞ (¥ per share) 23.0 20.0 17.1 14.3 12.9 10.0 ’21年度 FY2021 ’22年度 FY2022 ’23年度 FY2023 ’24年度 FY2024 ’25年度 FY2025 ’26年度 FY2026 ’27年度 FY2027 ’28年度 FY2028
Slide 19: Appendix
Appendix © IHI Corporation All Rights Reserved. 19
Slide 20: Overview of Financial Results by Segment
Consolidated Results for FY2025 Year-on-Year Overview of Financial Results by Segment (FY2024 vs. FY2025) Orders received Order backlog Revenue Operating profit [%] (¥ Bil.) FY2024 FY2025 Change FY2024 FY2025 Change FY2024 FY2025 Change FY2024 FY2025 Change Resources, Energy 16.1 5.9 (10.1) 370.3 62
Slide 21: Factors of Change in Operating Profit by Segment
Consolidated Results for FY2025 Year on year Factors of Change in Operating Profit by Segment (FY2024 vs. FY2025) Changes in Reinforcement Change in Reformation of Expansion of Change in (¥ Bil.) business of cost foreign business Other Total LCB SG&A environment structure exchange rate structure Res
Slide 22: Operating Profit
Consolidated Results for FY2025 Operating Profit ＜Resources, Energy and Environment＞ ＜Social Infrastructure＞ +0.6 Improvement excluding the +6.8 3.7 +0.7 Deterioration of Cost of business reformation in 16.1 profitability in impact of business the overseas Carbon Solution overseas projects Business
Slide 23: Cash Flows
Consolidated Results for FY2025 Cash Flows (¥ Bil.) FY2024 FY2025 Change Profit before tax 138.4 185.4 +47.0 Depreciation 72.1 76.3 +4.1 Other 5.0 (19.9) (24.9) EBITDA 215.6 241.8 +26.2 Expenditures related to the additional inspection program (39.3) (48.8) (9.5) for PW1100G-JM engines *1 Change in
Slide 24: Financial Forecasts by Segment
Forecasts of Consolidated Results for FY2026 Financial Forecasts by Segment (FY2025 vs. FY2026) Orders received Revenue Operating profit (¥ Bil.) FY2025 FY2026 Change FY2025 FY2026 Change FY2025 FY2026 Change Resources, Energy 5.9 33.0 +27.0 624.7 360.0 (264.7) 376.7 390.0 +13.2 and Environment [1.6
Slide 25: Factors of Change in Operating Profit by Segment
Factors of Change in Operating Profit by Segment (FY2025 vs. FY2026 forecast) Changes in Reinforcement Change in Reformation of Expansion of Change in (¥ Bil.) business of cost foreign business Other Total LCB SG&A environment structure exchange rate structure Resources, Energy and Environment +1.5
Slide 26: Operating Profit
Forecasts of Consolidated Results for FY2026 Operating Profit ＜Resources, Energy and Environment＞ ＜Social Infrastructure＞ +10.0 33.0 +3.5 7.0 +4.5 ±0.0 Rebound from business +11.0 ±0.0 divestitures in FY2025 3.7 +1.0 ±0.0 Rebound from business reformation cost in ±0.0 FY2024 ±0.0 +1.5 (1.0) (0.3) 5.
Slide 27: Resources, Energy and Environment
Financial Results & Forecasts by Segment <Resources, Energy and Environment> (¥ Bil.) Orders received Revenue Operating profit 624.7 33.0 411.4 390.0 [8.5％] 376.7 370.3 360.0 Power System 16.1 [3.9％] Carbon Solution 5.9 [1.6％] Nuclear Energy Asian Base EPC, etc. FY2024 FY2025 FY2026 FY2024 FY2025 FY
Slide 28: Social Infrastructure
Financial Results & Forecasts by Segment <Social Infrastructure> (¥ Bil.) Orders received Revenue Operating profit 7.0 [6.4％] 150.4 146.0 3.7 133.2 131.9 [2.8％] 110.0 110.0 Bridges & Watergates (4.2) Shield Systems [(2.9％)] Other FY2024 FY2025 FY2026 FY2024 FY2025 FY2026 FY2024 FY2025 FY2026 Orders
Slide 29: Industrial Systems and General-Purpose Machinery
Financial Results & Forecasts by Segment <Industrial Systems and General-Purpose Machinery> (¥ Bil.) Orders received Revenue Operating profit 484.8 30.7 30.0 484.4 460.7 450.0 450.5 [6.8％] 440.0 [6.8％] Vehicular Turbocharger Parking 10.8 Rotating Machinery [2.2％] Heat Treatment & Surface Engineering
Slide 30: Aero Engine, Space and Defense
Financial Results & Forecasts by Segment <Aero Engine, Space and Defense> (¥ Bil.) Orders received Revenue Operating profit 810.0 860.0 719.9 703.1 130.0 651.7 122.7 112.4 [15.1％] [22.1％] Defense aero 555.7 [17.3％] engines and equipment Civil aero engines Space etc. FY2024 FY2025 FY2026 FY2024 FY202
Slide 31: Revenue for Civil aero engines
*1 [Reference] Revenue for Civil aero engines ■Percentage of main units, spare parts *2 and maintenance in revenue ■Trend in revenue and spare parts handling amount of Civil aero240engine business Percentage of spare parts Percentage of main units Percentage of maintenance 350% Line graph: Trends in
Slide 32: KPI of Aftermarket business
[Reference] KPI of Aftermarket business ■Trend of spare parts revenue (Revenue*1 = Handling amount*2－ Related costs*3) (Unit5,000 ：Billion USD) 4.0 4,000 Excluding 3.0 3,000 Revenue from spare parts sales Handling amount PW1100G 2.0 2,000 1.0 1,000 PW1100G 0 PW1100G Related costs (1.0) ▲1,000 Exclud
Slide 33: Quarterly operating profit trends in Aero engine, Space and Defense
[Reference] Quarterly operating profit trends in Aero engine, Space and Defense business (excluding impacts of FX and temporary factors) • Spare parts sales remained strong despite deferred cost recognition from FY2024 to FY2025 due to delayed shipments of serviced engines • Profits are expected to
Slide 34: Revenue, Operating Profit, and EBITDA by Segment
Revenue, Operating Profit, and EBITDA by Segment Resources, Energy and FY2025 Revenue FY2025 EBITDA Environment Resources, 3% Social 6% Infrastructure Energy and 23% Environment Aero Engine, Aero Engine, Space and Industrial 41% Space and 21% Defense Systems Revenue Defense EBITDA and ¥1,643.4 Bil.
Slide 35: Revenue by Region
Revenue by Region FY2024 FY2025 Europe Other Other Europe 2% 6% 1% 6% North 25% Japan America North 26% 46% Japan America 49% 6% 6% China China 16% 11% Asia Asia Overseas revenue Overseas revenue ¥873.8 Bil. ¥832.3 Bil. © IHI Corporation All Rights Reserved. 35
Slide 36: The Status of LCB in Conventional Businesses
The Status of LCB in Conventional Businesses Note 1: Conventional Businesses: Energy Business, Infrastructure Business, and Industrial Systems Business. Note 2: Figures affected by business divestitures and segment changes which have been excluded from past results such as Concrete construction mate
Slide 37: Financial Position
Financial Position As of As of (¥ Bil.) March 31, 2025 March 31, 2026 Change Total assets 2,240.3 2,428.5 +188.1 Cash and cash equivalents 136.8 155.0 +18.2 Trade receivables & contract assets 620.6 680.8 +60.1 Inventories 444.0 504.2 +60.1 Total liabilities 1,731.7 1,747.0 +15.2 Trade payables etc.
Slide 38: Asset Balance by Segment
Asset Balance by Segment Note: Following the organizational restructuring in FY2025, Urban development has been retroactively reclassified from “Social Infrastructure” to “Other.” Assets balance (¥ Bil.) As of March 31, 2025 As of March 31, 2026 Change Resources, Energy and Environment 338.4 335.9 (
Slide 39: Cash Flows / R&D / CAPEX / Depreciation
Cash Flows / R&D / CAPEX / Depreciation FY2026 (¥ Bil.) FY2024 FY2025 Forecast Profit before tax 138.4 185.4 230.0 Depreciation 72.1 76.3 80.0 Other 5.0 (19.9) 10.0 EBITDA 215.6 241.8 320.0 Expenditures related to the additional inspection program of (39.3) (48.8) (50.0) PW1100G-JM engines *1 Change
Slide 40: Financial Performance
Financial Performance (¥ Bil.) FY2026 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (Forecast) Orders received 1,280.0 1,097.0 1,261.2 1,366.1 1,376.8 1,751.1 1,954.7 1,760.0 Revenue 1,263.1 1,112.9 1,172.9 1,352.9 1,322.5 1,626.8 1,643.4 1,830.0 Operating profit 47.8 27.9 81.4 81.9 (70.1) 143.5
Slide 41: Revenue & Number of Civil aero engines Delivered
Revenue & Number of Civil aero engineds Delivered Number of Civil aero engines delivered FY26 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Notes (Units) Forecast GE90, GEnx, CF34, GE Engines 817 810 684 681 798 477 332 337 331 330 390 Passport20, GE9X V2500 427 340 272 180 47 5 16 20 6 19
Slide 42: Revenue by Region & Number of Vehicular turbochargers Delivered
Revenue by Region & Number of Vehicular turbochargers Delivered Japanese GAAP IFRS (¥ Bil.) FY26 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Forecast Japan 34.6 38.9 39.8 44.6 39.1 35.4 38.0 41.8 42.1 49.1 57.3 50.0 Asia 21.6 15.8 11.7 11.0 10.7 8.5 11.8 14.9 15.8 10.9 11.5 12.0 China 24.
Slide 43: Revenue by Region & Number of Vehicular turbochargers Delivered
Revenue by Region & Number of Vehicular turbochargers Delivered Revenue (¥ Bil.) The number of delivery (Million units) 80.0 2 1.60 1.50 1.46 1.51 1.45 1.42 1.41 70.0 1.38 1.40 1.5 1.23 62.4 60.0 1 56.4 54.8 52.3 52.2 50.1 50.0 47.4 0.5 40.0 38.9 0 36.7 37.4 30.0 -0.5 20.0 -1 10.0 -1.5 0.0 -2 FY2019
Slide 44: Urban development
Urban development (1) Lease revenue in the Toyosu area Japanese GAAP IFRS (¥ Bil.) ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 '25 Lease 10.1 9.3 9.2 9.3 9.4 12.3 12.1 12.2 12.0 12.2 12.9 revenue (2) Lease revenue and expenses in the Toyosu area Lease expense Lease (¥ Bil.) Difference revenue Depreciati
Slide 45: Excerpt from Management Outlook (8th May, 2026)
Excerpt from Management Outlook (8th May, 2026) © IHI Corporation All Rights Reserved. 45
Slide 46: Forward-looking figures disclaimer
Forward-looking figures shown in this material with respect to IHI’s performance outlooks and other matters are based on management’s assumptions and beliefs in light of the information currently available, and therefore contain risks and uncertainties. Consequently, you should not place undue relia