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IHI shares surge in afternoon trade on 45% operating profit growth guidance for March 2027 year, hitting third straight record high

Fri May 8, 2026 1:32 pm JST Catalyst

IHI Corporation <7013> surged in afternoon trading. During mid-day trade, the company released its consolidated earnings guidance for the fiscal year ending March 2027, projecting sales of 1.83 trillion yen (up 11.4% year-on-year). Operating profit is seen jumping 45.0% to 240 billion yen, while net profit is expected to rise 2.5% to 165 billion yen, highlighting a robust profit expansion. The upbeat outlook fueled market buying, further supported by the company hiking its planned annual dividend to 23 yen, a substantial increase from the previous year.

Although order intake is expected to decline due to the absence of large-scale energy projects recorded in the previous year, sales are projected to be driven by an expanding aftermarket business for commercial aircraft engines, alongside anticipated growth in new engine sales. The defense business is also poised to benefit from national defense enhancement policies. Despite factoring in higher research and development costs for future growth, as well as buffers for geopolitical risks and structural reforms, IHI is on track to post record-high results for a third straight year.

For the fiscal year ended March 2026, IHI reported sales of 1.643 trillion yen (up 1.0% year-on-year), an operating profit of 165.53 billion yen (up 15.3%), and a net profit of 160.99 billion yen (up 42.8%).

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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