IHI Corporation

IHI's stock price declined in late August 2026, closing at 2,638 yen on August 26, down 12.9% from the August 14 high of 3,028 yen. The company's profit pillar is the aerospace and defense segment, which generated sales of 648.1 billion yen (39% of consolidated revenue) and operating profit of 112.4 billion yen in fiscal year ending March 2026, accounting for over 70% of the company's total operating profit of 152.7 billion yen. In contrast, the other three segments combined for only 40.3 billion yen in operating profit. The stock decline is attributed to a 15.0% year-on-year drop in orders for the first quarter of fiscal year ending March 2027, as well as the inclusion of a 40 billion yen gain from property sales in the profit increase. The current P/E ratio is 16.3, P/B ratio is 4.0, and ROE is 28.4%, significantly exceeding the machinery industry median of 7.8%.

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.