IHI Corporation's operating profit for the quarter to June rose to ¥73.2bn from ¥20.9bn a year earlier, a jump the company attributes mainly to its own business, not accounting one-offs. Strip out a real-estate gain and operating profit still came to ¥33.1bn, up ¥12.3bn on the year and, by the company's own account, a record for a first quarter. Revenue for the three months rose 10.9% to ¥374.5bn, and net profit attributable to shareholders climbed to ¥53.5bn from ¥11.6bn.
The underlying growth came from civil aircraft engines, defense and nuclear power, the three businesses IHI has flagged as its growth engines. Civil-engine revenue rose 27% year-on-year to ¥109.4bn on strong demand for spare parts and new-engine deliveries, and the aerospace, space and defense segment's operating profit rose to ¥29.1bn from ¥27.9bn. Domestic carbon-solutions work, engine lifecycle business and better margins on vehicle turbochargers also added to the total.
The ¥40.0bn gain that separates the reported and underlying profit figures did not come from a single land deal. IHI's earnings presentation breaks it into three transactions: two land-and-building sales in Tokyo's Koto ward, and a smaller batch of other property sales.
| Property | Gain | Announced |
|---|---|---|
| Koto ward land and building | ¥15.3bn | April 20, 2026 |
| Koto ward land and building | ¥24.0bn | April 20, 2026 |
| Other properties (multiple deals) | ¥0.7bn | Within Q1 |
| Q1 total | ¥40.0bn | — |
The company plans to book a further ¥53.0bn in property gains later in the year, taking its full-year real-estate sale target to ¥93.0bn, up ¥3.0bn from the prior forecast, largely from further disposals in the Toyosu area.
On the back of the quarter, IHI raised its full-year forecast for the year to March 2027 by ¥10.0bn each on revenue and operating profit, now guiding to ¥1.84tn in revenue, ¥250.0bn in operating profit and ¥172.0bn in net profit attributable to shareholders, up 51.0% and 6.8% respectively from the prior year on an operating-profit and net-profit basis. The dividend forecast is unchanged at ¥23.00 per share for the year. One caveat worth flagging for anyone reading the profit line alone: operating cash flow for the quarter was negative ¥43.2bn, reflecting rising inventory tied to engine production and tax payments, even as reported profit rose sharply.
The results also carry a governance footnote. On June 2, 2026, IHI Aerospace, a consolidated subsidiary, received a five-month bidding suspension from the Japan Aerospace Exploration Agency (JAXA) after JAXA found the subsidiary had billed for costs based on false reporting under an equipment-maintenance contract. IHI said it would reinforce compliance awareness and organizational reform, and that any effect on group results would be reflected in guidance once known. The disclosure does not quantify a financial impact, and none has been folded into the revised forecast.