IHI Corporation Reports Strong Financial Rebound

IHI Corporation ( (IHICF) ) has released its Q2 earnings. Here is a breakdown of the information IHI Corporation presented to its investors.

IHI Corporation is a Japanese company listed on the Tokyo Stock Exchange, primarily involved in the manufacture and sale of machinery and equipment, with significant operations in the Aero Engine, Space and Defense sectors.

In its latest earnings report, IHI Corporation has shown a significant rebound in its financial performance for the six months ending September 30, 2024. The company reported a revenue increase of 61.1% compared to the previous period, driven by strong demand in civil aero engines and progress in a large-scale power plant project in Southeast Asia.

The company recorded a substantial turnaround with an operating profit of ¥77.2 billion, a stark contrast to the loss reported in the previous period. The profit before tax was ¥62.6 billion, and profit attributable to owners of the parent was ¥39.3 billion. This performance was supported by a rise in sales of spare parts for aero engines and the favorable effects of the yen’s depreciation.

Looking ahead, IHI Corporation remains focused on its strategic initiatives to enhance production capacity and efficiency, particularly in the aero engines and defense segments. The company aims to capitalize on growing global demand while also advancing its business portfolio in clean energy to support its long-term growth ambitions.

The management has revised its full-year forecasts upwards, projecting revenues of ¥1,600 billion and operating profits of ¥145 billion for the fiscal year ending March 31, 2025. The company also announced an increase in its year-end dividend forecast, reflecting confidence in its financial outlook.