Ihi Corporation · TSE:7013
Ihi — Q2 2027 Earnings Presentation
42 slides from Ihi's earnings presentation, Nov 4, 2026
Slide 1: Financial Results for Second Quarter FY2026 (IFRS)
Financial Results for Second Quarter FY2026 (IFRS) (for the Year ended March 31, 2027) November 4, 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 Second Quarter FY2026 3. Forecasts of Consolidated Results for FY2026 4. Shareholder Returns 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 as fo
Slide 3: Highlights
Highlights Results for Second Quarter FY2026 • Orders received expanded significantly in Defense and Civil aero engines, while total orders Summary of received declined year on year due to the rebound from large projects of the Energy business in the business previous year results • Revenue and prof
Slide 4: Consolidated Results for Second Quarter FY2026
Consolidated Results for Second Quarter FY2026 © IHI Corporation All Rights Reserved. 4
Slide 5: Overview of Financial Results
Consolidated Results for Second Quarter FY2026 Overview of Financial Results (¥ Bil.) Q2 FY2025 Q2 FY2026 Change Orders received 893.4 778.7 [(12.8%)] (114.6) Revenue (*) 713.6 (*) 779.3 [＋9.2pt] +65.6 Operating profit excluding gain on sale of property [%] [9.2%] 65.6 [9.3%] 72.3 [＋0.1pt] +6.7 Gain
Slide 6: Factors of Change in Revenue (Group-Wide)
Consolidated Results for Q2 FY2026 Factors of Change in Revenue (Group-Wide) • Total revenue growth was driven by Civil aero engines • Defense and Nuclear energy in Growth Business and Stable Revenue Businesses also contributing to top-line growth (¥ Bil.) Business expansion +83.6 © IHI Corporation
Slide 7: Factors of Change in Operating Profit (Group-Wide)
Consolidated Results for Q2 FY2026 Factors of Change in Operating Profit (Group-Wide) • Operating profit expanded significantly, supported by growing demand for Civil aero engines and LCB expansion in Carbon solutions and Power systems • The sale of property was also completed as planned, resulting
Slide 8: Factors of Change in Operating Profit (Aero Engine, Space and Defense)
Consolidated Results for Q2 FY2026 Factors of Change in Operating Profit (Aero Engine, Space and Defense) • Overall profits increased, supported by robust growth in the Aftermarket business for Civil aero engines • Install Engine deliveries and upfront investments remain on track, steadily strengthe
Slide 9: [Reference] Revenue for Civil aero engines (JPY)
*1 [Reference] Revenue for Civil aero engines (JPY) *2 • Continued revenue growth in both Install Engine and Aftermarket businesses Note: Excluding the impact of the additional inspection program for PW1100G-JM engines. ●Q2 Year on year ●Trend from FY2022 to FY2026 Forecast (¥ Bil.) +28% (¥ Bil.) 30
Slide 10: [Reference] KPI of Aftermarket business
[Reference] KPI of Aftermarket business ■Trend of spare parts revenue (USD) *1 ●Q2 Year on year ●Trend from FY2022 to FY2026 Forecast Revenue expanded steadily year over • Despite geopolitical risks and elevated fuel prices, air transportation demand remains robust year, led by the PW1100G-JM progra
Slide 11: Financial Position
Consolidated Results for Second Quarter FY2026 Financial Position • The financial foundation was solidified through the accumulation of profits from business growth and the sale of property • The issuer rating was upgraded by one notch, from “A” to “A+” As of March 31, 2026 As of September 30, 2026
Slide 12: Cash Flows
Consolidated Results for Second Quarter FY2026 Cash Flows • Operating cash flow declined due to an increase in working capital associated with business growth • Free cash flow improved on proceeds from property sales (¥ Bil.) Q2 FY2025 Q2 FY2026 Change Profit before tax 74.7 122.7 +48.0 Depreciation
Slide 13: Business Portfolio Reform
Business Portfolio Reform • Planned Reformation of Business Structure under the previous medium-term management plan has been completed, with overall profitability improving significantly • The business portfolio will continue to be optimized in response to changes in the external environment Public
Slide 14: Forecasts of the Consolidated Results for FY2026
Forecasts of the Consolidated Results for FY2026 © IHI Corporation All Rights Reserved. 14
Slide 15: Performance Forecast
Forecasts of the Consolidated Results for FY2026 Performance Forecast • Forecasts for orders received, revenue and profit, as well as the annual dividend forecast, were revised upward to reflect recent business performance • Record-high earnings expected for a second consecutive year, driven by stro
Slide 16: Factors of Change in Operating Profit (Group-Wide)
Forecasts of the Consolidated Results for FY2026 Factors of Change in Operating Profit (Group-Wide) • Strong profit growth in Civil aero engines and Defense in the Aerospace Segment, as well as in the LCB business in the Energy Segment, demonstrates steady progress toward achieving step-change growt
Slide 17: Shareholder Returns
Shareholder Returns © IHI Corporation All Rights Reserved. 17
Slide 18: Shareholder Returns
Shareholder Returns • Revised upward by ¥2 from the August forecast, reflecting strong business performance ＜Dividends per Share＞ +¥2 （Unit: ¥/share） FY2026 Dividend Forecast 25.0 Interim dividend: ¥11.5/share 23.0 Year-end dividend: ¥13.5/share Annual dividend: ¥25.0/share 20.0 17.1 14.3 12.9 10.0
Slide 19: Appendix
Appendix © IHI Corporation All Rights Reserved. 19
Slide 20: Factors of Change in Operating Profit by Segment
Consolidated Results for Second Quarter FY2026 Factors of Change in Operating Profit by Segment (Q2 FY2025 vs Q2 FY2026) Orders received Revenue Operating profit [%] (¥ Bil.) Q2 FY2025 Q2 FY2026 Change Q2 FY2025 Q2 FY2026 Change Q2 FY2025 Q2 FY2026 Change Resources, Energy (0.1) 0.7 +0.8 and Environ
Slide 21: Factors of Change in Operating Profit by Segment
Consolidated Results for Second Quarter FY2026 Factors of Change in Operating Profit by Segment (Q2 FY2025 vs Q2 FY2026) 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 struct
Slide 22: Financial Forecasts by Segment
Forecasts of the Consolidated Results for FY2026 Financial Forecasts by Segment (Forecasts of FY2026 announced in November vs FY2025) Orders received Revenue Operating profit (¥ Bil.) FY2025 FY2026 Change FY2025 FY2026 Change FY2025 FY2026 Change Forecast Forecast Forecast Nov. - FY2025 Nov. - FY202
Slide 23: Factors of Change in Operating Profit by Segment
Forecasts of the Consolidated Results for FY2026 Factors of Change in Operating Profit by Segment (Forecasts of FY2026 announced in November 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
Slide 24: Financial Forecasts by Segment
Forecasts of the Consolidated Results for FY2026 Financial Forecasts by Segment (Forecasts of FY2026 announced in August vs November) Orders received Revenue Operating profit (¥ Bil.) FY2026 FY2026 Change FY2026 FY2026 Change FY2026 FY2026 Change Forecast Forecast Forecast Forecast Forecast Forecast
Slide 25: Factors of Change in Operating Profit by Segment
Forecasts of the Consolidated Results for FY2026 Factors of Change in Operating Profit by Segment (Forecasts of FY2026 announced in August vs November) Changes in Reinforcement Change in Reformation of Expansion of Change in (¥ Bil.) business of cost foreign business Other Total LCB SG&A environment
Slide 26: Financial Results & Forecasts by Segment: Resources, Energy and Environment
Financial Results & Forecasts by Segment <Resources, Energy and Environment> Orders received Revenue Operating profit (Full year) (Full year) (in ¥Bil.) (Full year) (Full year) (Full year) (Full year) Forecast as of Aug. Nov. Forecast as of Aug. Nov. Forecast as of Aug. Nov. 40 33.0 624.7 400.0 [8.5
Slide 27: Financial Results & Forecasts by Segment: Social Infrastructure
Financial Results & Forecasts by Segment <Social Infrastructure> Orders received Revenue Operating profit (in ¥Bil.) (Full year) (Full year) (Full year) (Full year) (Full year) (Full year) 7.0 [6.4%] 133.2 131.9 3.7 [2.8%] 110.0 110.0 (Q2) (Q2) (Q2) (Q2) (Q2) (Q2) Bridges and 59.1 59.2 water gates 3
Slide 28: Financial Results & Forecasts by Segment: Industrial Systems and General-Purpose Machinery
Financial Results & Forecasts by Segment <Industrial Systems and General-Purpose Machinery> Orders received Revenue Operating profit (Full year) (Full year) (Full year) (Full year) (Full year) (Full year) (in ¥Bil.) Forecast as of Aug. Nov. Forecast as of Aug. Nov. 460.7 Forecast as of Aug. Nov. 450
Slide 29: Financial Results & Forecasts by Segment: Aero Engine, Space and Defense
Financial Results & Forecasts by Segment <Aero Engine, Space and Defense> Orders received Revenue Operating profit (Full year) (Full year) (in ¥Bil.) Forecast as of Aug. Nov. (Full year) (Full year) (Full year) (Full year) Forecast as of Aug. Nov. 870.0 890.0 Forecast as of Aug. Nov. 820.0 840.0 150
Slide 30: Quarterly operating profit trends in Aero Engine, Space and Defense business
Quarterly operating profit trends in Aero Engine, Space and Defense business (excluding impacts of FX and temporary factors) FY26 FY26 FY23 FY24 FY25 FY25 FY25 FY25 FY25 FY26 FY26 (Forecast) （Unit: ¥ Bil.） Q3–Q4 Quarter Quarter Quarter Q1 Q2 Q3 Q4 Q1 Q2 Quarter Average Average Average Average Averag
Slide 31: The Status of Lifecycle Business (LCB)
The Status of Lifecycle Business (LCB) 171% 180% 1,600.0 154% 155% 144% 150% 137% 1,200.0 118% 113% 120% Revenue (¥ Bil.) 100% 800.0 90% 400.0 60% 0.0 30% FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast LCB Except for LCB LCB Revenue（Percentage compared with FY2019） Note 1: LCB incl
Slide 32: Revenue, Operating Profit, and EBITDA by Segment
Revenue, Operating Profit, and EBITDA by Segment Q2 FY2026 Revenue Q2 FY2026 EBITDA • 3 Business Areas *1 • 3 Business Areas *1 16% • Aero Engine, Space and Defense 44% Revenue EBITDA*2 ¥779.3 Bil. 56% ¥113.7 Bil. • Aero Engine, Space and Defense 88% • 3 Business Areas *1 Q2 FY2026 Operating profit
Slide 33: Revenue by Region
Revenue by Region Q2 FY2025 Q2 FY2026 Others Others Europe Europe 2% 4% 6% 7% North North America 42% 44% America 29% Japan Japan 32% 7% 4% 11% China 12% China Asia Asia Overseas revenue Overseas revenue ¥396.2 Bil. ¥448.5 Bil. © IHI Corporation All Rights Reserved. 33
Slide 34: Financial Position
Consolidated Results for Second Quarter FY2026 Financial Position As of As of (¥ Bil.) March 31, 2026 September 30, 2026 Change Total assets 2,428.5 2,540.9 +112.4 Cash and cash equivalents 155.0 137.0 (18.0) Trade receivables & contract assets 680.8 698.7 +17.8 Inventories 504.2 590.6 +86.4 Total l
Slide 35: Cash Flows / R&D / APEX / Depreciation
FY2026 Consolidated Financial Forecast Cash Flows / R&D / APEX / Depreciation (Forecasts of FY2026 announced in August vs November) FY2025 FY2026 FY2026 Change (¥ Bil.) Forecast Forecast November - August (in August) (in November) Profit before tax 185.4 240.0 260.0 +20.0 Depreciation 76.3 80.0 80.0
Slide 36: Financial Performance
Financial Performance (In billion yen) FY2026 FY2026 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Q2 FY2026 (Forecast) (Forecast in Aug.) Orders received 1,097.0 1,261.2 1,366.1 1,376.8 1,751.1 1,954.7 778.7 1,890.0 1,770.0 Revenue 1,112.9 1,172.9 1,352.9 1,322.5 1,626.8 1,643.4 779.3 1,880.0 1,840.0 O
Slide 37: Revenue & Number of Civil Aero Engines Delivered
Revenue & Number of Civil Aero Engines Delivered Number of Civil aero engines delivered FY26 （Units） FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Notes Q1 Q2 YTD Forecast GE90, GEnx, CF34, GE Engines 810 684 681 798 477 332 337 331 330 390 116 236 Passport20, GE9X V2500 340 272 180 47 5 16 20 6
Slide 38: Revenue by Region & Number of Vehicular Turbochargers Delivered
Revenue by Region & Number of Vehicular Turbochargers Delivered Japanese GAAP IFRS (¥ Bil.) FY2026 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Q2 YTD Forecast Japan 38.9 39.8 44.6 39.1 35.4 38.0 41.8 42.1 49.1 57.3 27.6 53.0 Asia 15.8 11.7 11.0 10.7 8.5 11.8 14.9 15.8 10.9 11.5 5.5 11.0 China
Slide 39: Revenue by Region & Number of Vehicular Turbochargers Delivered
Revenue by Region & Number of Vehicular Turbochargers Delivered Revenue (¥ Bil.) The number of deliveries (Million units) 80.0 2.00 1.50 1.45 1.50 70.0 1.38 1.40 1.42 1.50 1.23 1.26 1.21 60.0 1.00 55.9 52.3 52.2 52.7 51.7 50.0 47.4 0.50 40.0 38.9 0.00 36.7 37.4 30.0 ▲ 0.50 20.0 ▲ 1.00 10.0 ▲ 1.50 0.
Slide 40: Urban development
Urban development (1) Lease revenue in the Toyosu area Japanese GAAP IFRS FY26 (¥ Bil.) FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Q2 YTD Lease 9.3 9.2 9.3 9.4 12.3 12.1 12.2 12.0 12.2 12.9 5.7 revenue (2) Lease revenue and expenses in the Toyosu area Lease expense Lease (¥ Bil.) Difference r
Slide 41: Results and Projected Property Sales for FY2026
Results and Projected Property Sales for FY2026 Gain on Sale Date of No. Property Subject to Sale Sale Timing （Approx.￥ Bil.） Announcement Land and Buildings 1 15.3 Q1 FY2026 April 20, 2026 Koto-ku, Tokyo, Japan Land and Buildings 2 24.0 Q1 FY2026 April 20, 2026 Koto-ku, Tokyo, Japan Other Property
Slide 42: 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