Earnings Alerts

IHI Corp (7013) Earnings Fall Short of Estimates in Q1, But 2026 Forecasts Remain Positive

  • IHI’s operating income for the first quarter was 20.89 billion yen, which is a 12% decrease year-over-year and lower than the estimated 27.46 billion yen.
  • The company’s net income for the same period was 11.60 billion yen, marking a 38% decrease year-over-year. This figure also fell short of the 19.1 billion yen estimate.
  • Net sales for the first quarter were recorded at 337.79 billion yen, down 3% from the previous year and below the expected 355.58 billion yen.
  • For the year 2026, IHI maintains its forecast for operating income at 150.00 billion yen, slightly below the consensus estimate of 155.44 billion yen.
  • The company also retains its forecast for net income at 120.00 billion yen, which surpasses the estimate of 115.99 billion yen.
  • Projected net sales for the year are 1.65 trillion yen, close to the estimated 1.67 trillion yen.
  • Analyst recommendations for IHI include 11 buy ratings, 3 hold ratings, and 0 sell ratings.

IHI Corp on Smartkarma

Independent analysts on Smartkarma, such as Rahul Jain, have shared positive insights on IHI Corporation (TSE:7013). Jain’s report titled “IHI Corporation (TSE:7013) – Rebound in Aero Drives Multi-Year Upside” highlights the company’s strong expected revenue and profit growth, particularly in civil aero engines and defense orders. With a promising outlook for future earnings and valuation, the report predicts a sharp turnaround from FY22–FY24, leading to significant revenue increase and operating profit. Jain notes the order backlog growth and management’s guidance on continued expansion, making the stock appear reasonably valued as a capital-efficient aero-led compounder.

Another analyst, Brian Freitas, in his report “IHI Corp (7013 JP): Global Index Inclusion in May,” points out the surge in IHI Corp‘s stock price over the past year, likely resulting in global index inclusion in May. Despite the stock’s impressive rally, it still trades cheaper than its peers on various valuation metrics. Freitas observes substantial positioning in the stock, along with similar patterns in its peers, suggesting potential upside in the near term. Both analysts provide valuable perspectives on IHI Corp‘s performance and future prospects on the Smartkarma platform.


A look at IHI Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience3
Momentum5
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts using Smartkarma Smart Scores have indicated a positive long-term outlook for IHI Corp, a company that specializes in manufacturing heavy machinery. With a growth score of 4 and a momentum score of 5, IHI Corp is positioned well for future expansion and market performance. The company has also demonstrated resilience with a score of 3, indicating its ability to withstand economic challenges. While its value and dividend scores are moderate at 2, the strong growth and momentum scores suggest a promising future for IHI Corp in the heavy machinery sector.

IHI Corporation, known for producing aircraft jet engines, rocket propulsion systems, and military and commercial ships, also engages in the construction of petroleum refineries and nuclear power plants. This diverse portfolio positions the company as a key player in critical infrastructure industries. With a solid overall outlook based on the Smartkarma Smart Scores, investors may find IHI Corp to be an attractive long-term investment opportunity given its strong growth potential and market momentum.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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