Ihi Corporation · TSE:7013
Ihi — Q1 2027 Earnings Presentation
40 slides from Ihi's earnings presentation, Aug 5, 2026
Slide 1: Financial Results for First Quarter FY2026 (IFRS)
Financial Results for First Quarter FY2026 (IFRS) (for the Year ended March 31, 2027) August 5, 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 First Quarter FY2026 3. Forecasts of Consolidated Results for FY2026 4. 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 follows: Resources, Energy
Slide 3: Highlights
Highlights Results for First Quarter FY2026 • Civil aero engine demand remains strong, while overall orders received declined due to Summary of the rebound from large projects of the Energy business in the previous year business • Revenue and profit growth driven by expanding domestic Civil aero eng
Slide 4: Consolidated Results for First Quarter FY2026
Consolidated Results for First Quarter FY2026 © IHI Corporation All Rights Reserved. 4
Slide 5: Overview of Financial Results
Consolidated Results for First Quarter FY2026 Overview of Financial Results (¥ Bil.) Q1 FY2025 Q1 FY2026 Change Orders received 424.3 360.7 [(15.0%)] (63.6) Revenue (*) 337.7 (*) 374.5 [+10.9%] +36.7 Operating profit excluding gain on sale of property [%] * [6.2%] 20.8 * [8.8%] 33.1 [ ＋ 2.6pt] +12.3
Slide 6: Factors of Change in Revenue
Consolidated Results for Q1 FY2026 Factors of Change in Revenue (Group-Wide) • Strong revenue growth, driven by Growth Business in Civil aero engines, Defense and Nuclear energy, together with continued growth in Stable Revenue Businesses, more than offset the impact of prior-year business divestitu
Slide 7: Factors of Change in Operating Profit
Consolidated Results for Q1 FY2026 Factors of Change in Operating Profit (Group-Wide) • Operating profit expanded significantly, supported by continued growth in Growth Business in Civil aero engines and Nuclear energy, LCB expansion in domestic Carbon solutions and Power systems, and improved profi
Slide 8: Factors of Change in Operating Profit (Aero Engine, Space and Defense)
Consolidated Results for Q1 FY2026 Factors of Change in Operating Profit (Aero Engine, Space and Defense) • Overall profits increased, supported by favorable FX movements and robust aftermarket performance in Civil aero engine • Upfront investments and install engines deliveries, which will underpin
Slide 9: Revenue for Civil Aero Engines
*1 [Reference] Revenue for Civil aero engines (JPY) • Strong demand drives substantial revenue growth across both Install Engine and Aftermarket businesses *2 Note: Excluding the impact of the additional inspection program for PW1100G-JM engines. ●Q1 Year on year ●Trend from FY2022 to FY2026 Forecas
Slide 10: KPI of Aftermarket Business
[Reference] KPI of Aftermarket business (USD) ■Trend of spare parts revenue *1 ●Q1 Year on year ●Trend from FY2022 to FY2026 Forecast Revenue expanded steadily year No material impact from the Middle East situation identified to over year, led by the PW1100G- date; revenue growth forecast remains un
Slide 11: Financial Position
Consolidated Results for First Quarter FY2026 Financial Position • Ratio of equity attributable to owners of parent improved, supported by earnings accumulation including property sales • Inventories remain in an uptrend to support production ramp-up in Civil aero engine, while working capital impro
Slide 12: Cash Flows
Consolidated Results for First Quarter FY2026 Cash Flows • Operating cash flow declined due to the rebound of advance payments in prior-year and increased working capital supporting revenue growth • Free cash flow improved on proceeds from property sales (¥ Bil.) Q1 FY2025 Q1 FY2026 Change Profit be
Slide 13: Forecasts of the Consolidated Results for FY2026
Forecasts of the Consolidated Results for FY2026 © IHI Corporation All Rights Reserved. 13
Slide 14: Performance Forecast
Forecasts of the Consolidated Results for FY2026 Performance Forecast • Full-year forecast raised following strong first-quarter performance in Aero Engine, Space & Defense and progress on property sales • Forecast to deliver record-high earnings for a second consecutive year FY2025 FY2026 FY2026 Ch
Slide 15: Financial Forecasts by Segment
Forecasts of the Consolidated Results for FY2026 Financial Forecasts by Segment • Risk buffer (¥20.0 billion) included in Adjustment remains in place to address potential costs associated with business restructuring at overseas Energy subsidiaries • The need for the buffer will continue to be assess
Slide 16: Appendix
Appendix © IHI Corporation All Rights Reserved. 16
Slide 17: Funding Sources for Investment
Funding sources for the total investment of ¥650.0 billion for growth toward Phase 2 and beyond • The main funding sources for the ¥510.0 billion in investments will be operating CF excluding R&D expenses and proceeds from property sales • Returns are carefully evaluated for each project, and invest
Slide 18: Business Portfolio Reform
Business Portfolio Reform Publication Business Overview date • Completed transfer of 100% shares of IHI PACKAGED BOILER CO.,LTD. to TAKUMA CO., LTD. Oct.28, 2024 Packaged boiler (April 1, 2025) Materials Handling • Completed transfer of the Materials Handling System business of IHI Transport Machine
Slide 19: Financial Results by Segment
Financial Results by Segment (Q1 FY2025 vs Q1 FY2026) Orders received Order backlog Revenue Operating profit [%] (¥ Bil.) Q1 FY2025 Q1 FY2026 Change Q1 FY2025 Q1 FY2026 Change Q1 FY2025 Q1 FY2026 Change Q1 FY2025 Q1 FY2026 Change Resources, Energy (3.3) 2.8 +6.2 143.1 79.9 (63.2) 698.5 693.0 (5.5) 7
Slide 20: Factors of Change in Operating Profit by Segment
Factors of Change in Operating Profit by Segment (Q1 FY2025 vs Q1 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 structure Resources, Energy and Environment +0.5 +4.2
Slide 21: Financial Forecasts by Segment
Financial Forecasts by Segment (Forecasts of FY2026 announced in May vs August) Orders received Revenue Operating profit (¥ Bil.) FY2025 FY2026 FY2026 Change FY2025 FY2026 FY2026 Change FY2025 FY2026 FY2026 Change Forecast Forecast Forecast Forecast Forecast Forecast Aug. - May. Aug. - May. Aug. - M
Slide 22: Factors of Change in Operating Profit by Segment
Factors of Change in Operating Profit by Segment (Forecasts of FY2026 announced in May vs August) 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 a
Slide 23: Financial Results & Forecasts: Resources, Energy and Environment
Financial Results & Forecasts by Segment <Resources, Energy and Environment> Orders received Revenue Operating profit (Full year) (Full year) (Full year) (Full year) (Full year) (Full year) (in ¥Bil.) 624.7 33.0 [8.5%] 390.0 376.7 Power systems 360.0 (Q1) (Q1) 5.9 (Q1) [1.6%] 2.8 Carbon 143.1 Soluti
Slide 24: Financial Results & Forecasts: 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 3.7 110.0 [(2.8)%] Bridges and 110.0 water gates (Q1) (Q1) (Q1) (Q1) (Q1) (Q1) (1.7) (1.
Slide 25: Financial Results & Forecasts: 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.) 460.7 450.0 450.5 440.0 30.7 30.0 Vehicular [6.8%] [6.8%] turbochargers Parking (Q1)
Slide 26: Financial Results & Forecasts: Aero Engine, Space and Defense
Financial Results & Forecasts by Segment <Aero Engine, Space and Defense> Orders received Revenue Operating profit (in ¥Bil.) (Full year) (Full year) (Full year) (Full year) (Full year) (Full year) Forecast as of May. Aug. Forecast as of May. Aug. Forecast as of May. Aug. 810.0 820.0 860.0 870.0 703
Slide 27: Quarterly Operating Profit Trends
[Reference] Quarterly operating profit trends in Aero Engine, Space and Defense business (excluding impacts of FX and temporary factors) • The aftermarket business continues to perform steadily in FY2026, maintaining a trend of profit growth FY26 FY23 FY24 FY25 FY26 FY25 FY25 FY25 FY25 FY26 （Unit: ¥
Slide 28: Revenue, Operating Profit, and EBITDA by Segment
Revenue, Operating Profit, and EBITDA by Segment • Resources, Energy Q1 FY2026 EBITDA and Environment Q1 FY2026 Revenue • Social Infrastructure • Resources, Energy and 6% • Industrial Environment Systems 24% and • Aero Engine, • Aero Engine, 17% General- Space and Space and 42% Purpose Defense Defen
Slide 29: Revenue by Region
Revenue by Region Q1 FY2025 Q1 FY2026 Others Others Europe Europe 2% 4% 6% 7% North North America 41% 42% America 30% Japan 31% Japan 7% 5% China 14% 11% China Asia Asia Overseas revenue Overseas revenue ¥197.2 Bil. ¥216.0 Bil. © IHI Corporation All Rights Reserved. 29
Slide 30: The Status of LCB
The Status of LCB 180% 165% 1,600.0 154% 155% 144% 150% 137% 1,200.0 118% 113% 120% Revenue 100% (¥ Bil.) 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 includes Energy Business,
Slide 31: Financial Position
Financial Position As of As of (¥ Bil.) March 31, 2026 June 30, 2026 Change Total assets 2,428.5 2,461.2 +32.6 Cash and cash equivalents 155.0 117.0 (38.0) Trade receivables & contract assets 680.8 687.5 +6.7 Inventories 504.2 554.4 +50.2 Total liabilities 1,747.0 1,737.4 (9.6) Trade payables etc. 4
Slide 32: Cash Flows / R&D / CAPEX / Depreciation
Cash Flows / R&D / CAPEX / Depreciation (Q1 FY2025 vs Q1 FY2026) (¥ Bil.) Q1 FY2025 Q1 FY2026 Change Profit before tax 20.2 81.9 +61.7 Depreciation 18.1 20.6 +2.5 Gain on sale of property - (40.0) (40.0) Expenditures related to the additional inspection program (8.4) (11.3) (2.9) for PW1100G-JM engi
Slide 33: Cash Flows / R&D / CAPEX / Depreciation (Forecasts)
Cash Flows / R&D / CAPEX / Depreciation (Forecasts of FY2026 announced in May vs August) FY2025 FY2026 FY2026 Change (¥ Bil.) Forecast Forecast August - May (in May) (in August) Profit before tax 185.4 230.0 240.0 +10.0 Depreciation 76.3 80.0 80.0 - Gain on sale of property (22.4) (90.0) (93.0) (3.0
Slide 34: Financial Performance
Financial Performance (In billion yen) FY2026 FY2026 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Q1 FY2026 (Forecast) (Forecast in May) Orders received 1,097.0 1,261.2 1,366.1 1,376.8 1,751.1 1,954.7 360.7 1,770.0 1,760.0 Revenue 1,112.9 1,172.9 1,352.9 1,322.5 1,626.8 1,643.4 374.5 1,840.0 1,830.0 Op
Slide 35: 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 Forecast GE90, GEnx, CF34, GE Engines 810 684 681 798 477 332 337 331 330 390 116 Passport20, GE9X V2500 340 272 180 47 5 16 20 6 19 22 7 PW
Slide 36: 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 Q1 Forecast Japan 38.9 39.8 44.6 39.1 35.4 38.0 41.8 42.1 49.1 57.3 13.5 49.0 Asia 15.8 11.7 11.0 10.7 8.5 11.8 14.9 15.8 10.9 11.5 3.0 11.0 China 48.5
Slide 37: 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 1.50 1.45 1.50 70.0 1.38 1.40 1.42 1.5 1.23 1.26 60.0 1 55.9 52.3 52.2 52.7 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 FY2020 FY2021 FY202
Slide 38: 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 1Q Lease 9.3 9.2 9.3 9.4 12.3 12.1 12.2 12.0 12.2 12.9 2.9 revenue (2) Lease revenue and expenses in the Toyosu area Lease expense Lease (¥ Bil.) Difference reven
Slide 39: 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 40: Forward-looking figures shown in this material
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