IHI Corporation designs and builds engineering solutions in Japan and internationally. It operates through four segments: Resources, Energy and Environment; Social Infrastructure; Industrial Systems and General-Purpose Machinery; and Aero Engine, Space and Defense. The company manufactures and sells power systems, carbon solutions, nuclear components, transport systems, turbochargers, and other industrial machinery, and also provides aero engines, space and defense systems, and real estate services. Formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd., it changed its name to IHI Corporation in 2007 and was founded in 1853, headquartered in Tokyo, Japan.
Japan weighs raising defence budget to 3.5% of GDP, fears hit to fiscal health and bond yields
The Japanese government is considering raising its medium-term defence budget share to 3.5% of gross domestic product, or GDP, in line with the targets of NATO and other U.S. allies. One option under consideration is to set a target in line with South Korea's pledge to raise defence spending to 3.5% of GDP within 10 years, while a lower target of around 3% also remains possible. Prime Minister Sanae Takaichi has already accelerated defence spending to nearly 2% of GDP in the fiscal year that ended in March, two years ahead of the original schedule, up from an informal cap of around 1% of GDP before 2022. A new five-year defence spending plan is expected to be announced late this year. After the report, Japanese defence stocks, led by IHI Corp and Kawasaki Heavy Industries, reversed course in afternoon trading on the Japanese stock market, closing up 1.82% and 0.89% respectively. Japanese government bonds fell, pushing the yield on 10-year government debt to its highest level since 1996, while the yen weakened to 154.91 yen to the dollar. Analysts at Iwai Cosmo Securities said the market is worried about the fiscal position, as reflected in the bond market reaction, and that it is hard for investors to view this news positively.
Defense & Geopolitical Fragmentation › Defense Primes — Europe & Asia ▲Demand
JP-10Y.GB · Monetary · Negative Higher defence spending raises fiscal concerns, pushing 10-year JGB yields to their highest since 1996 (bond prices fall).
7012.JP · Demand · Positive Higher Japanese defence spending targets imply more orders for Kawasaki Heavy Industries' defence business, lifting its shares.
7013.JP · Demand · Positive Japan's planned defence budget hike to 3.5% of GDP boosts expected demand for IHI's defence equipment, lifting its shares.
Kyuden International Acquires IHI Power Services to Secure U.S. Plant Operators
Kyuden International Corp., the overseas arm of Japan's Kyushu Electric Power Co., has completed its acquisition of IHI Power Services Corp., a U.S. plant operator with four decades of experience, rebranding it as Kyuden Energy Partners Corp. The deal, announced in July, reflects a strategic shift in the power sector: rather than buying megawatts, the buyer is acquiring the capability to run plants, as turbine lead times stretch beyond four years and interconnection queues remain equally long. Tony Dabbene, who stays on as CEO, highlighted the "most dynamic environment in decades," with developers increasingly turning to behind-the-meter solutions like reciprocating engines, fuel cells, and battery storage to bypass grid bottlenecks. The acquisition aligns with Kyuden International's plan to expand its U.S. plant ownership over the next several years, bringing operations in-house instead of relying on contractors. The seller, IHI Corp., framed the sale as part of a structural reform of its overseas Carbon Solution business, with the operator's revenue easing from about $136 million in fiscal 2024 to roughly $126 million a year later. Dabbene called the business "the missing piece" in Kyuden's portfolio-growth strategy, emphasizing organic growth as the immediate priority, though staffing expansion remains a key challenge given the scarcity of qualified operators.
Energy Transition & Power Demand › Behind-the-Meter & On-site Power ▲Competition
7013.JP · Capital · Neutral IHI Corp. is the seller of IHI Power Services, framing the divestiture as part of a structural reform of its overseas Carbon Solution business, with the unit's revenue easing from ~$136M to ~$126M.
IHI Reports 73.2 Billion Yen Operating Profit for Q1 FY2026, Stock Drops from 3,000s to 2,700s
IHI's first-quarter results for the fiscal year ending March 2027 showed revenue of 374.5 billion yen, operating profit of 73.2 billion yen, and profit attributable to owners of the parent of 53.5 billion yen. The operating profit achieved 29.3% of the full-year forecast, faster than the even distribution of 25%. Meanwhile, the stock price fell from the 3,000-yen range to the 2,700-yen range in August 2026, dropping about 13% over the past month from a high closing price of 3,028 yen to a low of 2,638 yen. The company's order backlog at the end of March 2025 was 1.4873 trillion yen, equivalent to about 0.9 years of annual revenue, but the thickness of orders and stock price movements are not necessarily linked. By segment, the aerospace, defense, and space segment had the largest backlog at 605.9 billion yen, followed by resources, energy, and environment at 437.6 billion yen, social infrastructure at 217.0 billion yen, and industrial systems and general-purpose machinery at 206.1 billion yen. Valuation metrics show a P/E ratio of 17.1 times and a P/B ratio of 4.21 times, with an equity ratio of 26.9%, well below the machinery industry median of 67.3%.
Ibiden hits daily limit up after raising full-year operating profit forecast to 127 billion yen
Ibiden hit its daily limit up after raising its full-year operating profit forecast for the fiscal year ending March 2027 to 127 billion yen from the previous 90 billion yen. First-quarter operating profit rose 52.4 percent year-on-year to 26.8 billion yen, driven by strong demand for high-value-added products for AI servers and general-purpose server products. Meanwhile, Daikin Industries saw its first-quarter operating profit rise 7.6 percent to 130.5 billion yen, but the result was merely in line with market expectations and the stock fell. IHI raised its full-year operating profit forecast to 250 billion yen from 240 billion yen, but its shares were sold after the earnings release. The Nikkei Stock Average surged 2,342 points to 66,300, extending gains sharply as Middle East concerns receded and US tech stocks rose.
IHI Corporation posts Q1 diluted EPS of ¥50.48 on revenue of ¥374.5 billion
IHI Corporation reported first-quarter diluted earnings per share of ¥50.48. Revenue rose 10.9% year-over-year to ¥374.5 billion. The results were disclosed in the company's press release for the first quarter of fiscal year 2026.
IHI raises full-year net profit forecast by 6.8% to 172 billion yen
IHI announced a forecast for consolidated net profit of 172 billion yen for the fiscal year ending March 2027, up 6.8% from the previous year. The mainstay commercial aircraft engine business is solid, and the company raised its outlook from the previous forecast of 165 billion yen, expecting a record high. The figure exceeded the average analyst estimate of 168.8 billion yen from 13 analysts. Revenue was revised upward to 1.84 trillion yen, up 12.0%, and operating profit to 250 billion yen, up 51.0%. The order forecast was also raised by 10 billion yen to 1.77 trillion yen. The dividend forecast was left unchanged.
7013.JP · Capital · Positive IHI raised its full-year net profit forecast by 6.8% to 172 billion yen, exceeding analyst estimates, indicating strong earnings performance.
Global Pressure Vessels Market to Reach $73.24 Billion by 2031
The global pressure vessels market is projected to grow from USD 57.55 billion in 2026 to USD 73.24 billion by 2031, a compound annual growth rate of 4.9 percent. Storage vessels are expected to hold the second-largest market share by type in 2026, driven by demand from oil and gas, chemical manufacturing, and power generation. Within the processing vessels segment, reactors are forecast to be the fastest-growing subcategory through 2031, supported by increased investment in controlled chemical and industrial processes. North America is positioned as the second-fastest-growing regional market, with growth fueled by clean energy projects, infrastructure modernization, and tighter safety regulations. Major companies in the market include Babcock & Wilcox Enterprises, GE Vernova, Larsen & Toubro, Mitsubishi Heavy Industries, and IHI Corporation.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Demand
Energy Transition & Power Demand › Natural Gas Value Chain ▲Demand
7011.JP · Demand · Positive Market growth driven by demand from oil & gas, chemical, and power generation sectors, which are end-markets for pressure vessels.
7013.JP · Demand · Positive Market growth driven by demand from oil & gas, chemical, and power generation sectors, which are end-markets for pressure vessels.
BW · Demand · Positive Market growth driven by demand from oil & gas, chemical, and power generation sectors, which are end-markets for pressure vessels.
GEV · Demand · Positive Market growth driven by demand from oil & gas, chemical, and power generation sectors, which are end-markets for pressure vessels.
LTOD.LSE · Demand · Positive Market growth driven by demand from oil & gas, chemical, and power generation sectors, which are end-markets for pressure vessels.
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