IHI Corporation

Business Details

Composed of three pillars: the prime mover business centered on land-based power plants and marine engines, the carbon solutions business including boilers and storage facilities, and the nuclear equipment business. Provides manufacturing, sales, EPC, and lifecycle services for power generation and energy infrastructure both domestically and internationally. Against the backdrop of rising energy security concerns and the decarbonization trend, the segment is also expanding into next-generation energy fields such as building an ammonia value chain. Positioned as a "core business" of the IHI Group, it functions as a stable source of cash generation.

Recent Overview

In FY2026 (ending March 2026), both revenue and profit declined significantly year on year, and impairment losses also increased

In the Resources, Energy & Environment segment for FY2026 (ending March 2026), revenue was ¥376,720 million (versus ¥411,463 million in the prior fiscal year) and segment profit was ¥5,959 million (versus ¥16,136 million in the prior fiscal year), with both revenue and profit declining significantly year on year. In addition, impairment losses surged to ¥2,970 million (versus ¥282 million in the prior fiscal year), suggesting a decline in profitability of certain assets. Note that, in a correction disclosure dated May 25, 2026, the depreciation and amortization figure for the Social Infrastructure segment in the prior fiscal year (FY2025, ended March 2025) was corrected; there is no change to the figures for this segment itself.

Key Products

Growth Drivers

• Expanding demand for prime movers and power generation equipment amid rising awareness of energy security
• Orders and progress on large-scale power plant projects in emerging markets, primarily in Southeast Asia
• Medium- to long-term expansion of the Carbon Solutions Lifecycle Business (LCB)
• Progress in developing decarbonization technologies such as ammonia gas turbines toward commercialization
• Expected recovery in demand for nuclear equipment amid renewed attention to nuclear energy

Risks

• Risk of temporary revenue decline due to a gap between Carbon Solutions LCB projects
• Risk of deteriorating profitability at overseas consolidated subsidiaries (such as Carbon Solutions overseas subsidiaries)
• Costs and trust-recovery risks associated with a quality issue related to improper conduct in engine test-run records in the prime mover business
• Uncertainty in the energy market due to geopolitical risks and changes in U.S. policy
• Risk of deteriorating construction profitability due to rising material prices and labor costs
• Risk of declining profitability of certain assets, as indicated by the increase in impairment losses