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Financial Results for First Quarter FY2026 ( IFRS ) ( for the Year ended March 31 , 2027 ) August 5 , 2026 IHI IHI Corporation Managing Executive Officer In Charge of Group Finance & Accounting Hiromi Oshima IHI Corporation All Rights Reserved .
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Table of Contents © IHI Corporation All Rights Reserved. 2 Note 1: Figures for each item are rounded down to the nearest 0.1 billion yen. Note 2: Segment abbreviations used in the text are as follows: Resources, Energy & Environment Business Area: “Energy Segment” Social Infrastructure Business Area: “Infrastructure Segment” Industrial Systems & General-Purpose Machinery Business Area: “Industrial Systems Segment” Aero Engine, Space & Defense Business Area: "Aerospace Segment" 1. Highlights 2. Consolidated Results for First Quarter FY2026 3. Forecasts of Consolidated Results for FY2026 4. Appendix
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33© IHI Corporation All Rights Reserved. Highlights Results for First Quarter FY2026 Forecasts of FY2026 Summary of business results • Civil aero engine demand remains strong, while overall orders received declined due to the rebound from large projects of the Energy business in the previous year • Revenue and profit growth driven by expanding domestic Civil aero engine and Nuclear energy, with solid contributions from Carbon solutions and Vehicular turbocharger; record Q1 earnings achieved even excluding gain on sale of property ¥73.2 Bil. [19.5%] ¥33.1 Bil. [8.8%] YoY: ¥12.3 Bil. Operating profit (¥43.2) Bil. YoY: (¥37.9) Bil. CF from operating activities Orders ¥360.7 Bil. Year-on-Year (YoY): (¥63.6) Bil. ¥53.5 Bil. YoY: ¥41.9 Bil. Profit attributable to owners of parent Summary of business results • FY2026 guidance raised following strong first-quarter performance in the Aero Engine, Space & Defense segment; Orders received, Revenue and Operating profit increased by ¥10 billion, and Profit attributable to owners of parent by ¥7 billion • Forecast to set new record-high profits for the full year FY2026 Revenue ¥374.5 Bil. YoY: ¥36.7 Bil. ¥250.0 Bil. [13.6%] ¥10.0 Bil./¥84.4 Bil. [+3.5pt] ¥157.0 Bil. [8.5%] ¥7.0 Bil./¥13.9 Bil. ¥100.0 Bil. ¥±0.0 Bil./(¥21.3) Bil. CF from operating activities Orders ¥1,770.0 Bil. ¥10.0 Bil./(¥184.7) Bil. ¥172.0 Bil. ¥7.0 Bil./¥11.0 Bil. Profit attributable to owners of parent Revenue ¥1,840.0 Bil. ¥10.0 Bil./¥196.5 Bil. (*) Revision of forecast / Year-on-Year change are shown below each figures. YoY: ¥52.3 Bil. [+13.4pt] Operating profit Operating profit excluding gain on sale of property Operating Profit excluding gain on sale of property
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Consolidated Results for First Quarter FY2026 4© IHI Corporation All Rights Reserved.
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Consolidated Results for First Quarter FY2026 Overview of Financial Results 5© IHI Corporation All Rights Reserved. (*) The revenue includes the impact of FX revaluation related to the additional inspection program for PW1100G-JM engines for ¥3.6 Bil. in Q1 FY2025, and (¥0.9) Bil. in Q1 FY2026. There is no change in the total estimated amount (USD) of the impact related to the additional inspection program for PW1100G-JM engines. ** 424.3 360.7 [(15.0%)] (63.6) 337.7 374.5 [+10.9%] +36.7 Operating profit excluding gain on sale of property [%] [6.2%] 20.8 [8.8%] 33.1 [ ＋ 2.6pt] +12.3 Gain on sale of property - 40.0 +40.0 [6.2%] 20.8 [19.5%] 73.2 [＋13.3pt] +52.3 Finance income / costs etc. (0.6) 8.7 +9.4 [6.0%] 20.2 [21.9%] 81.9 [＋15.9pt] +61.7 [3.4%] 11.6 [14.3%] 53.5 [＋10.9pt] +41.9 [11.5%] 38.9 [25.1%] 93.8 [＋13.6pt] +54.8 (5.3) (43.2) (37.9) 145.56 160.52 +14.96 144.73 162.33 +17.60 (¥ Bil.) Orders received ChangeQ1 FY2025 Average FX rate [Yen/USD] EBITDA [%] Closing FX rate [Yen/USD] Cash flows from operating activities Q1 FY2026 Revenue Operating profit [%] Profit before tax [%] Profit attributable to owners of parent [%] (*)(*)
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• Strong revenue growth, driven by Growth Business in Civil aero engines, Defense and Nuclear energy, together with continued growth in Stable Revenue Businesses, more than offset the impact of prior-year business divestitures © IHI Corporation All Rights Reserved. 6 Consolidated Results for Q1 FY2026 Factors of Change in Revenue (Group-Wide) Business expansion +48.0 (¥ Bil.) ✓ Demand expansion in Civil aero engines ✓ Expansion of LCB (Lifecycle Business) in domestic Carbon Solution and Power System, etc.
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(¥ Bil.) • Operating profit expanded significantly, supported by continued growth in Growth Business in Civil aero engines and Nuclear energy, LCB expansion in domestic Carbon solutions and Power systems, and improved profitability in Vehicular turbochargers © IHI Corporation All Rights Reserved. 7 Consolidated Results for Q1 FY2026 Factors of Change in Operating Profit (Group-Wide) ✓ Expansion of LCB in domestic Carbon Solutions and Power System, etc. ✓ Surging demand in Civil aero engines ✓ Surging demand in Nuclear energy ✓ Improved profitability for Vehicular Turbochargers through higher selling prices and cost reductions Increase in operating profit +12.3 73.2 Gain on sales of property +40.0 ✓ R&D costs, personnel costs, etc.
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© IHI Corporation All Rights Reserved. Consolidated Results for Q1 FY2026 Factors of Change in Operating Profit (Aero Engine, Space and Defense) 8 Operating profit (¥ Bil.) • Overall profits increased, supported by favorable FX movements and robust aftermarket performance in Civil aero engine • Upfront investments and install engines deliveries, which will underpin future revenue growth, remain on track FX Impact +2.9 ✓ Increasing in the number of PW1100G-JM and GE engines ✓ Increasing in sales of V2500 and PW1100G ✓ Increasing in upfront investments such as R&D and personnel costs etc Changes in business environment ＋1.3
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0 100 200 300 400 500 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast Spare parts Install Engine Maintenance 0 50 100 150 Q1 FY25 Q1 FY26 Spare parts Install Engine Maintenance [Reference] Revenue for Civil aero engines (JPY) © IHI Corporation All Rights Reserved. 9 *1 *1: Revenue based on accounting standards (GAAP base : Generally Accepted Accounting Principles). *2: After Market = Spare parts + Maintenance (¥ Bil.) 85.8 109.4 Percentage Q1 FY2025 Q1 FY2026 Spare parts 59% 59% Install Engine 34% 33% Maintenance 7% 8% +27% YoY ●Q1 Year on year Percentage FY2022 FY2023 FY2024 FY2025 FY2026 Forecast Spare parts 61% 58% 60% 60% 60% Install Engine 36% 37% 34% 33% 33% Maintenance 3% 5% 6% 7% 7% (¥ Bil.) ●Trend from FY2022 to FY2026 Forecast • Strong demand drives substantial revenue growth across both Install Engine and Aftermarket businesses Note: Excluding the impact of the additional inspection program for PW1100G -JM engines. 201.4 253.0 350.7 383.6 480.0 *2
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-0.2 0.0 0.2 0.4 0.6 0.8 1.0 (1.0) (0.6) (0.2) 0.2 0.6 1.0 1.4 1.8 Q1 FY2025 Q1 FY2026 (3.0) (2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast Excluding PW1100G PW1100G PW1100G Excluding PW1100G (Unit：Billion USD) © IHI Corporation All Rights Reserved. *1: Revenue based on accounting standards (GAAP base: Generally Accepted Accounting Principles). Spare parts sales revenue = Gross-based sales − maintenance costs, etc. *2: Gross-based sales before the deduction of spare parts related costs, as used in management accounting. *3: Maintenance costs etc. for which participants of each engine programs are responsible. ■Trend of spare parts revenue *1 10 [Reference] KPI of Aftermarket business (USD) ●Q1 Year on year Revenue expanded steadily year over year, led by the PW1100G- JM program Handling amount *2Maintenance costs etc. *3 Revenue from spare parts sales (Unit：Billion USD) ●Trend from FY2022 to FY2026 Forecast CAGR in handling amount from FY2022 to FY2025: Over 20% Revenue from spare parts sales No material impact from the Middle East situation identified to date; revenue growth forecast remains unchanged +15% YoY Handling amount Maintenance costs etc.
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977.1 681.5 975.3 723.8 111.2 489.8 126.8 487.1 504.2 433.6 554.4 452.4 110.6 116.7 680.8 311.4 687.5 308.8 155.0 401.4 117.0 372.2 資産 負債＋資本 資産 負債＋資本 Cash and cash equivalents Non-current assets Trade receivables Inventories Other current assets Cash and cash equivalents Non-current assets Trade receivables Inventories Other current assets Trade payables etc. Interest- bearing liabilities Equity Contract liabilities Other Refund liabilities Trade payables etc. Interest- bearing liabilities Equity Contract liabilities Other Refund liabilities （¥ Bil.） © IHI Corporation All Rights Reserved. 11 Total assets ：¥ 2,461.2 Bil. [+¥32.6 Bil.] D/E ratio ：0.67 times [improved 0.05pt] Ratio of equity attributable to owners of parent：28.3% [+1.4pt] As of March 31, 2026 As of June 30, 2026 Total assets ：¥ 2,428.5 Bil. D/E ratio ：0.72 times Ratio of equity attributable to owners of parent：26.9% • Ratio of equity attributable to owners of parent improved, supported by earnings accumulation including property sales • Inventories remain in an uptrend to support production ramp-up in Civil aero engine, while working capital improvements remain a key focus through fiscal year-end Consolidated Results for First Quarter FY2026 Financial Position
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Consolidated Results for First Quarter FY2026 Cash Flows 12© IHI Corporation All Rights Reserved. *1: Expenditures related to the additional inspection program of PW1100G-JM engines are shown separately from conventional "changes in working capital". *2: Change in working capital consists of change in trade receivables, contract assets, inventories, prepayments, contract liabilities, trade payables and refund liabilities. Working capital = Trade receivables + Contract assets + Inventories + Prepayments - Contract liabilities - Trade payables - Refund liabilities • Operating cash flow declined due to the rebound of advance payments in prior-year and increased working capital supporting revenue growth • Free cash flow improved on proceeds from property sales Q1 FY2025 Q1 FY2026 Change 20.2 81.9 +61.7 18.1 20.6 +2.5 - (40.0) (40.0) (8.4) (11.3) (2.9) 39.2 (69.4) (108.6) Tax payments (57.3) (19.5) +37.8 (17.1) (5.6) +11.5 (5.3) (43.2) (37.9) (15.6) 23.6 +39.2 Capital expenditures included in Cash flows from investing activities (25.4) (18.0) +7.3 (20.9) (19.6) +1.3Free cash flows Cash flows from investing activities Cash flows from operating activities Gain on sale of property Depreciation Profit before tax (¥ Bil.) Other Expenditures related to the additional inspection program for PW1100G-JM engines *1 Change in working capital *2
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13© IHI Corporation All Rights Reserved. Forecasts of the Consolidated Results for FY2026
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(Reference) FX rate sensitivity (impact amount on operating profit from Q2 to Q4 by change of 1 yen) : USD 1.5 ¥Bil. The FX impact of the additional inspection program for PW1100G-JM engines remains unchanged at the end of the previous fiscal year (159.85 yen/USD). (FX rate sensitivity excludes this effect.) Forecasts of the Consolidated Results for FY2026 Performance Forecast 14© IHI Corporation All Rights Reserved. • Full-year forecast raised following strong first-quarter performance in Aero Engine, Space & Defense and progress on property sales • Forecast to deliver record-high earnings for a second consecutive year 1,954.7 1,760.0 1,770.0 +10.0 1,643.4 1,830.0 1,840.0 +10.0 Operating profit excluding gain on sale of property [%] [8.7%] 143.1 [8.2%] 150.0 [8.5%] 157.0 +7.0 Gain on sale of property 22.4 90.0 93.0 +3.0 [10.1%] 165.5 [13.1%] 240.0 [13.6%] 250.0 +10.0 [11.3%] 185.4 [12.6%] 230.0 [13.0%] 240.0 +10.0 [9.8%] 160.9 [9.0%] 165.0 [9.3%] 172.0 +7.0 151.88 155.09 161.67 +6.58 [14.7%] 241.8 [17.5%] 320.0 [17.9%] 330.0 +10.0 151.09 145.00 145.00 - Orders received Revenue (¥ Bil.) Assumed FX rate [Yen/USD] Profit attributable to owners of parent [% ] EBITDA [%] EPS [Yen] Operating profit [%] Profit before tax [%] FY2025 FY2026 FY2026 Change Forecast (in May) Forecast (in Aug.) Aug. - May
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Forecasts of the Consolidated Results for FY2026 Financial Forecasts by Segment 15© IHI Corporation All Rights Reserved. FY2025 FY2026 FY2026 Change FY2025 FY2026 FY2026 Change FY2025 FY2026 FY2026 Change Forecast (in May) Forecast (in August) Aug. - May. Forecast (in May) Forecast (in August) Aug. - May. Forecast (in May) Forecast (in August) Aug. - May. 5.9 33.0 33.0 - [1.6%] [8.5%] [8.5%] - 3.7 7.0 7.0 - [2.8%] [6.4%] [6.4%] - 30.7 30.0 30.0 - [6.8%] [6.8%] [6.8%] - 112.4 130.0 137.0 +7.0 [17.3%] [15.1%] [15.7%] [+0.6pt] 165.5 240.0 250.0 +10.0 [10.1%] [13.1%] [13.6%] [+0.5pt] Orders received Revenue Operating profit Other Adjustment (including corporate overhead costs) Total (¥ Bil.) 624.7 133.2 460.7 703.1 1,921.9 81.1 (48.3) 1,954.7 Resources, Energy and Environment Social Infrastructure Industrial Systems and General-Purpose Machinery Aero Engine, Space and Defense Total Reportable Segment 75.0 (45.0) 1,760.0 360.0 110.0 450.0 820.0 1,740.0 75.0 (45.0) 1,770.0 360.0 110.0 810.0 450.0 1,730.0 - - +10.0 376.7 131.9 450.5 651.7 1,610.8 84.3 (51.8) 1,643.4 - - - +10.0 +10.0 1,810.0 870.0 440.0 110.0 390.0 75.0 (45.0) 1,830.0 1,840.0 (45.0) 75.0 390.0 110.0 440.0 860.0 1,800.0 - - +10.0 152.8 35.8 (23.2) - - - +10.0 +10.0 200.0 95.0 (55.0) 207.0 +7.0 +3.098.0 (55.0) - • Risk buffer (¥20.0 billion) included in Adjustment remains in place to address potential costs associated with business restructuring at overseas Energy subsidiaries • The need for the buffer will continue to be assessed *1 *2 *1: Other includes a gain on sale of property of ¥93.0 billion. *2: Adjustment includes a risk buffer of (¥20.0 billion).
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16© IHI Corporation All Rights Reserved. Appendix
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Funding sources for the total investment of ¥650.0 billion for growth toward Phase 2 and beyond 17© IHI Corporation All Rights Reserved. 17 • The main funding sources for the ¥510.0 billion in investments will be operating CF excluding R&D expenses and proceeds from property sales • Returns are carefully evaluated for each project, and investments are made to ensure medium- to long-term growth Growth and Development- focus Businesses Stable Revenue Businesses Safety and Quality Total Investment ¥650.0 billion （including ¥160.0 billion of R&D expenses） ⚫ Adjusted operating CF* : More than ¥510.0 billion *Adjusted operating CF= (1) Operating CF + (2) R&D expenses (1) Cumulative operating CF over 3 years ¥350.0 billion (2) R&D expenses over 3 years ¥160.0 billion ⚫ Proceeds from sales of properties etc. : More than ¥100.0 billion ⚫ Planned property sales, primarily in the Toyosu area* *Toyosu area : Koto-ku, Tokyo, Japan Investment Plan for the Next 3 Years (Phase 1: FY2026–FY2028) Funding Sources for the Total Investment of ¥650.0 Billion
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Publication date Business Overview Oct.28, 2024 Packaged boiler • Completed transfer of 100% shares of IHI PACKAGED BOILER CO.,LTD. to TAKUMA CO., LTD. (April 1, 2025) Nov.6, 2024 Materials Handling Systems • Completed transfer of the Materials Handling System business of IHI Transport Machinery Co.,Ltd. to Tadano Ltd. (July 1, 2025) Nov.25, 2024 Turf care machinery • Completed transfer of the Turf care machinery business of IHI Agri-Tech Corporation to Kyoeisha Co., Ltd. (June 1, 2025) Mar.27, 2025 Concrete construction materials • Completed transfer of 100% shares of IHI CONSTRUCTION MATERIALS Co., Ltd., to Vertex Corporation. (October 1, 2025) Jun.26, 2025 Investments accounted for using equity method • Completed transfer of 15% shares of Japan Marine United Corporation, to Imabari Shipbuilding Co., Ltd. (January 5, 2026) Aug.6, 2025 Transport systems • Completed transfer of 100% shares of Niigata Transys Co., LTD. to J-Will Partners Co., Ltd. Group (December 30, 2025) Aug.6, 2025 Weather, disaster prevention, space • Completed transfer of 100% shares of Meisei Electric Co., Ltd. to NOHMI BOSAI LTD. (February 2, 2026) Feb.2, 2026 Carbon solutions • Completed transfer of 100% shares of Kotobuki Iron Works Co., Ltd. to TSUNEISHI IRON WORKS Co., Ltd. (February 1, 2026) Feb.10, 2026 Carbon solutions (Overseas) • Initiated the liquidation process (Employee dismissal etc.) for IHI Energy Solutions Inc. on January 12, 2026. • Completed substantial liquidation within fiscal year 2025. Mar.16, 2026 Carbon solutions (Overseas) • Completed transfer of 100% shares of IHI Power Services Corp. to Kyushu Electric Power Group (June 1, 2026) May.8, 2026 Carbon solutions (Overseas) • Initiated the liquidation process for IHI SOLID BIOMASS MALAYSIA SDN. BHD. May.8, 2026 Logistics & Machinery • Agreed to transfer 100% shares of IHI Logistics & Machinery Corporation to Toyota Industries Corporation. (Scheduled to transfer 80% shares on April 1, 2027 and 20% of the remaining shares after approximately 5 years of retention) Business Portfolio Reform 18© IHI Corporation All Rights Reserved.
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19© IHI Corporation All Rights Reserved. Financial Results by Segment (Q1 FY2025 vs Q1 FY2026) Q1 FY2025 Q1 FY2026 Change Q1 FY2025 Q1 FY2026 Change Q1 FY2025 Q1 FY2026 Change Q1 FY2025 Q1 FY2026 Change (3.3) 2.8 +6.2 [(4.7%)] [3.2%] [+7.9pt] (1.7) (1.8) 0.0 [(6.2%)] [(8.8%)] [(2.6pt)] 0.3 5.5 +5.2 [0.3%] [5.5%] [+5.2pt] 27.9 29.1 +1.2 [21.9%] [18.9%] [(3.0pt)] Total Reportable Segment 415.3 352.2 (63.0) 1,748.8 1,723.5 (25.3) 332.7 366.3 +33.6 23.1 35.8 +12.6 Other 21.3 21.2 0.0 19.5 20.0 +0.5 15.1 17.3 +2.1 0.5 42.1 +41.6 Adjustment (including corporate overhead costs) (12.3) (12.8) (0.5) - - - (10.0) (9.1) +0.9 (2.7) (4.7) (2.0) 20.8 73.2 +52.3 [6.2%] [19.5%] [+13.3pt] Overseas 215.9 203.0 (12.9) 361.6 355.0 (6.5) 197.2 216.0 +18.7 Percentage of Overseas 51% 56% +5pt 20% 20% - 58% 58% - Operating profit [%] (¥ Bil.) Industrial Systems and General-Purpose Machinery Aero Engine, Space and Defense Orders received Order backlog (6.3)16.122.4 118.1112.7 181.5168.9+5.4 (8.7)20.429.1(18.1)206.4224.6 Resources, Energy and Environment Social Infrastructure Revenue +17.888.870.9(5.5)693.0698.5(63.2)79.9143.1 +36.7374.5337.7Total (24.7)1,743.61,768.3(63.6)360.7424.3 +26.8154.7127.9(14.1)642.4656.6+1.0138.0137.0 (2.2)102.3104.6+12.5
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Notes: ・There are cases where the aggregated amount of each segment or factor doesn’t match the total due to rounding off. Change in SG&A and change in other income and expenses exclude change in foreign exchange rate and other factors. 20© IHI Corporation All Rights Reserved. Factors of Change in Operating Profit by Segment (Q1 FY2025 vs Q1 FY2026) (¥ Bil.) Changes in business environment Expansion of LCB Reinforcement of cost structure Change in foreign exchange rate Change in SG&A Reformation of business structure Other Total Resources, Energy and Environment +0.5 +4.2 (0.6) +0.2 +1.2 +0.7 +6.2 Social Infrastructure (0.3) (0.1) +0.4 0.0 Industrial Systems and General-Purpose Machinery +1.1 +0.4 +2.5 +0.1 +0.1 +1.0 +5.2 Aero Engine, Space and Defense +1.3 +7.4 (2.9) The additional inspection program for PW1100G-JM engines (4.5) Total Reportable Segment +2.6 +4.6 +1.9 +3.2 (1.7) - +2.1 +12.6 Other +0.6 +0.9 +40.0 +41.6 Adjustment (including corporate overhead costs) +0.8 (2.7) (2.0) Total +3.2 +4.6 +3.6 +3.2 (4.4) - +42.1 +52.3 +1.2
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21© IHI Corporation All Rights Reserved. Financial Forecasts by Segment (Forecasts of FY2026 announced in May vs August) FY2025 FY2026 FY2026 Change FY2025 FY2026 FY2026 Change FY2025 FY2026 FY2026 Change Forecast (in May) Forecast (in August) Aug. - May. Forecast (in May) Forecast (in August) Aug. - May. Forecast (in May) Forecast (in August) Aug. - May. 5.9 33.0 33.0 - [1.6%] [8.5%] [8.5%] - 3.7 7.0 7.0 - [2.8%] [6.4%] [6.4%] - 30.7 30.0 30.0 - [6.8%] [6.8%] [6.8%] - 112.4 130.0 137.0 +7.0 [17.3%] [15.1%] [15.7%] [+0.6pt] 165.5 240.0 250.0 +10.0 [10.1%] [13.1%] [13.6%] [+0.5pt] 200.0 95.0 (55.0) 207.0 +7.0 +3.098.0 (55.0) - - - +10.0 152.8 35.8 (23.2) - - - +10.0 +10.01,810.0 870.0 440.0 110.0 390.0 75.0 (45.0) 1,830.0 1,840.0 (45.0) 75.0 390.0 110.0 440.0 860.0 1,800.0 - - +10.0 376.7 131.9 450.5 651.7 1,610.8 84.3 (51.8) 1,643.4 - - - +10.0 +10.0 75.0 (45.0) 1,760.0 360.0 110.0 450.0 820.0 1,740.0 75.0 (45.0) 1,770.0 360.0 110.0 810.0 450.0 1,730.0 624.7 133.2 460.7 703.1 1,921.9 81.1 (48.3) 1,954.7 Resources, Energy and Environment Social Infrastructure Industrial Systems and General-Purpose Machinery Aero Engine, Space and Defense Total Reportable Segment Other Adjustment (including corporate overhead costs) Total (¥ Bil.) Orders received Revenue Operating profit
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22© IHI Corporation All Rights Reserved. Factors of Change in Operating Profit by Segment (Forecasts of FY2026 announced in May vs August) Note: There are cases that the aggregated amount of each segment or factor doesn’t match to the total due to rounding off. Change in SG&A and change in other income and expenses exclude change in foreign exchange rate and other factors. 未更新 (¥ Bil.) Changes in business environment Expansion of LCB Reinforcement of cost structure Change in foreign exchange rate Change in SG&A Reformation of business structure Other Total Resources, Energy and Environment - Social Infrastructure - Industrial Systems and General-Purpose Machinery - Aero Engine, Space and Defense +7.0 +7.0 Total Reportable Segment - - - +7.0 - - - +7.0 Other +3.0 +3.0 Adjustment (including corporate overhead costs) - Total - - - +7.0 - - +3.0 +10.0
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(3.3) 5.9 2.8 (Q1) (Q1) Additional explanation • Power systems recorded a significant increase in revenue due to the expansion of LCB. • Although Carbon solutions saw a decrease in orders due to the rebound from large projects in the previous fiscal year, revenue increased significantly due to the expansion of LCB. • In the Nuclear energy where the robust demand continues, revenue increased as construction on orders received in the previous fiscal year progressed smoothly. Further progress on these projects is expected in the second half, leading to an expansion in revenue. Orders received Revenue (in ¥Bil.) Nuclear energy Power systems Asian Base EPC, etc. Carbon Solutions (CS) © IHI Corporation All Rights Reserved. [(4.7)%] 23 Financial Results & Forecasts by Segment <Resources, Energy and Environment> Operating profit 143.1 79.9 360.0 FY2025 FY2026 70.9 376.7 88.8 390.0 (Q1) (Q1) FY2026FY2025 FY2025 FY2026 (Full year) (Full year) (Full year) (Full year) (Full year) (Full year) (Q1) (Q1) [1.6%] [3.2%] [8.5%] 624.7 33.0 FY2026 Full year FY2026 Full year Power Systems 31.3 117.2 31.1 100.0 17.0 99.5 24.4 100.0 Carbon Solutions 61.6 222.7 30.4 150.0 24.8 129.8 30.1 130.0 Nuclear Energy 8.5 110.4 5.3 70.0 4.0 57.6 11.2 75.0 Asian Base EPC, etc. 41.7 174.4 13.1 40.0 25.1 89.8 23.1 85.0 Total 143.1 624.7 79.9 360.0 70.9 376.7 88.8 390.0 FY2025 Full year Q1 FY26 Orders received Revenue Q1 FY25 Q1 FY26 Q1 FY25 FY2025 Full year
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29.1 131.9 20.4 110.0 22.4 133.2 16.1 110.0 (1.7) 3.7 (1.8) 7.0 (Q1)(Q1) Additional explanation • Orders received and revenue for Bridges & Watergates were roughly on par with the same period of the previous year. • Orders received and revenue for Shield systems decreased due to the rebound effect from projects in the previous fiscal year. • Orders received and revenue decreased due to the impact of the business transfers of the Transport systems and Concrete construction materials in the previous fiscal year. Shield systems Bridges and water gates Others Orders received Revenue © IHI Corporation All Rights Reserved. 24 Financial Results & Forecasts by Segment <Social Infrastructure> Operating profit (Full year) (Full year) (Full year) (Full year) (Full year) (Full year) (Q1) (Q1) (Q1) (Q1) [(8.8)%] [6.4%] FY2025 FY2026 FY2025 FY2025FY2026 FY2026 (in ¥Bil.) [(6.2)%] [(2.8)%] FY2026 Full year FY2026 Full year Bridges and Water gates 12.1 103.3 14.0 85.0 17.2 86.8 16.4 88.0 Shield Systems 5.9 12.8 1.6 23.0 6.9 26.0 3.6 20.0 Other (including divested businesses) 4.4 17.1 0.5 2.0 5.0 19.1 0.4 2.0 Total 22.4 133.2 16.1 110.0 29.1 131.9 20.4 110.0 Divested businesses 3.9 15.3 - - 4.6 17.4 - - Q1 FY25 FY2025 Full year Q1 FY26 Orders received Revenue Q1 FY25 FY2025 Full year Q1 FY26
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112.7 460.7 118.1 450.0 (Q1) (Q1) 104.6 450.5 102.3 440.0 (Q1) (Q1) 0.3 30.7 5.5 30.0 Additional explanation • Although sales volume for Vehicular turbochargers decreased, revenue increased due to improved sales prices. • Parking and Rotating machineries worked to expand LCB, resulting in increases in both orders received and revenue. • Orders received and revenue for Heat treatment and Surface engineering were roughly on par with the previous fiscal year. • Orders received and revenue decreased due to the impact of the business transfers of the Transport machineries and Turf care machinery in the previous fiscal year. Rotating machineries Parking Vehicular turbochargers Heat treatment and surface engineering Logistics and industrial systems Others [6.8%] [0.3%] [5.5%] Orders received Revenue © IHI Corporation All Rights Reserved. 25 Financial Results & Forecasts by Segment <Industrial Systems and General-Purpose Machinery> Operating profit [6.8%] (Full year) (Full year) (Full year) (Full year) (Full year) (Q1) (Q1) FY2025 FY2026 FY2025 FY2026 FY2025 FY2026 (in ¥Bil.) (Full year) FY2026 Full year FY2026 Full year Vehicular Turbochargers 50.2 223.1 52.7 210.0 50.1 223.7 52.7 210.0 Parking 14.5 66.1 20.0 65.0 11.9 57.3 12.9 65.0 Rotating Machineries 14.1 55.3 18.6 70.0 12.9 61.0 13.7 65.0 Heat Treatment and Surface Engineering 12.8 50.4 14.3 50.0 12.3 52.3 13.0 50.0 Logistics and Industrial Systems 9.1 42.0 9.7 40.0 7.2 38.2 7.4 35.0 Other (including divested businesses) 12.0 23.8 2.8 15.0 10.2 18.0 2.6 15.0 Total 112.7 460.7 118.1 450.0 104.6 450.5 102.3 440.0 Divested businesses 11.0 11.0 - - 6.6 6.6 - - Q1 FY26 Q1 FY25 FY2025 Full yearQ1 FY25 FY2025 Full year Orders received Revenue Q1 FY26
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Additional explanation • In the 2nd half of the fiscal year, orders received and revenue for Defense aero engines and Equipment are expected to increase, driven by growth in aircraft engines and rocket motors. • Reflecting the business environment for Civil aero engines, we have revised upward orders received and revenue by 10 billion yen and operating profit by 7 billion yen. Civil aero engines Defense aero engines and equipment Others Orders received Revenue © IHI Corporation All Rights Reserved. 26 Financial Results & Forecasts by Segment <Aero Engine, Space and Defense> Operating profit 127.9 651.7 154.7 860.0 (Q1) (Q1) (Full year) (Full year) Forecast as of May. Aug. 27.9 112.4 29.1 130.0 [15.1%] Forecast as of May. Aug. 137.0 703.1 138.0 810.0 820.0 (Q1) (Q1) (Full year) (Full year) Forecast as of May. Aug. (Q1) (Full year) (Full year) (Q1) [21.9%] [18.9%] [17.3%] [15.7%] FY2025 FY2026 FY2025 FY2026 FY2025 FY2026 (in ¥Bil.) 870.0 137.0 FY2026 Full year FY2026 Full year Defense Aero-Engines and Equipment 30.0 264.4 17.2 280.0 28.9 212.1 36.6 300.0 Civil Aero-Engines 89.9 378.1 108.6 480.0 89.4 378.6 108.5 480.0 Space 9.7 31.3 4.3 40.0 4.0 35.2 2.5 55.0 Other 7.4 29.3 7.9 20.0 5.6 25.8 7.1 35.0 Total 137.0 703.1 138.0 820.0 127.9 651.7 154.7 870.0 Orders received Revenue Q1 FY25 FY2025 Full year Q1 FY26 Q1 FY25 FY2025 Full year Q1 FY26
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[Reference] Quarterly operating profit trends in Aero Engine, Space and Defense business (excluding impacts of FX and temporary factors) © IHI Corporation All Rights Reserved. 27 [Adjusted items] • FX impact A: Revise average FX rate of revenue to 145 Yen/USD. • FX impact B: Excluding impact of FX rate change of the additional inspection program for PW1100G-JM engines. • The aftermarket business continues to perform steadily in FY2026, maintaining a trend of profit growth FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY26 Q1 FY26 Q2-Q4 Average FY23 Quarter Average FY24 Quarter Average FY25 Quarter Average FY26 Quarter Average 27.9 26.7 15.9 41.7 29.1 35.9 14.2 30.6 28.1 34.2 FX Impact A (0.3) (1.1) (4.8) (5.0) (7.7) (0.1) (3.6) (2.8) (1.9) FX Impact B (3.6) 2.8 4.4 1.4 0.9 (0.2) 1.3 0.2 Bad debt expenses towards US-based airline 1.8 24.0 28.4 15.5 38.1 22.3 35.9 14.1 28.6 26.5 32.5 （Unit: ¥ Bil.） Aero Engine, Space and Defense Segment Operating Profit Adjustment Adjusted Operating Profit （Based on Exchange rate: ¥145/USD）
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6% 17% 77% • Aero Engine, Space and Defense Q1 FY2026 EBITDA Revenue, Operating Profit, and EBITDA by Segment 24% 6% 28% 42% Q1 FY2026 Revenue • Industrial Systems and General-Purpose Machinery • Social Infrastructure • Resources, Energy and Environment Revenue ¥374.5 Bil. © IHI Corporation All Rights Reserved. 28 3% 15% 82% • Aero Engine, Space and Defense Q1 FY2026 Operating profit • Industrial Systems and General-Purpose Machinery • Resources, Energy and Environment • Social Infrastructure • Resources, Energy and Environment • Social Infrastructure • Industrial Systems and General- Purpose Machinery • Aero Engine, Space and Defense Notes: ・The percentages in pie chart represent the composition ratio relative to the total of reportable segments. ・EBITDA by segment = Each segment’s operating profit + Each segment’s depreciation EBITDA ¥53.8 Bil. Operating profit ¥33.1 Bil. *1 *2 *1: EBITDA excludes gain on sale of property (¥40.0 Bil.) *2: Operating profit excludes gain on sale of property
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29© IHI Corporation All Rights Reserved. Revenue by Region 41% 14% 7% 30% 6% 2% Q1 FY2025 Others 42% 11%5% 31% 7% 4% Q1 FY2026 Japan Asia China North America Europe Overseas revenue ¥197.2 Bil. Others Japan AsiaChina North America Europe Overseas revenue ¥216.0 Bil.
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30© IHI Corporation All Rights Reserved. The Status of LCB 100% 113% 118% 137% 154% 144% 155% 165% 30% 60% 90% 120% 150% 180% 0.0 400.0 800.0 1,200.0 1,600.0 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast LCB Except for LCB LCB Revenue（Percentage compared with FY2019） Note 1: LCB includes Energy Business, Infrastructure Business, and Industrial Systems Business. Note 2: Figures affected by business divestitures and segment changes which have been excluded from past results such as Concrete construction materials, Transport machineries and Urban development. Revenue (¥ Bil.)
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31© IHI Corporation All Rights Reserved. Financial Position (¥ Bil.) As of March 31, 2026 As of June 30, 2026 Change Total assets 2,428.5 2,461.2 +32.6 Cash and cash equivalents 155.0 117.0 (38.0) Trade receivables & contract assets 680.8 687.5 +6.7 Inventories 504.2 554.4 +50.2 Total liabilities 1,747.0 1,737.4 (9.6) Trade payables etc. 401.4 372.2 (29.2) Contract liabilities 311.4 308.8 (2.5) Refund liabilities 110.6 116.7 +6.1 Interest-bearing liabilities 489.8 487.1 (2.7) Bonds and borrowings 359.5 357.8 (1.7) Lease liabilities 130.3 129.3 (1.0) Total equity 681.5 723.8 +42.3 Equity attributable to owners of parent 652.2 696.6 +44.3 Non-controlling interests 29.2 27.2 (2.0) Total liabilities and equity 2,428.5 2,461.2 +32.6
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*1: Expenditures related to the additional inspection program of PW1100G-JM engines are shown separately from conventional "changes in working capital“. *2: Change in working capital consists of change in trade receivables, contract assets, inventories, prepayments, contract liabilities, trade payables and refund liabilities. Working capital = Trade receivables + Contract assets + Inventories + Prepayments - Contract liabilities - Trade payables - Refund liabilities 32© IHI Corporation All Rights Reserved. Cash Flows / R&D / CAPEX / Depreciation (Q1 FY2025 vs Q1 FY2026) Q1 FY2025 Q1 FY2026 Change 20.2 81.9 +61.7 18.1 20.6 +2.5 - (40.0) (40.0) (8.4) (11.3) (2.9) 39.2 (69.4) (108.6) Tax payments (57.3) (19.5) +37.8 (17.1) (5.6) +11.5 (5.3) (43.2) (37.9) (15.6) 23.6 +39.2 Capital expenditures included in Cash flows from investing activities (25.4) (18.0) +7.3 (20.9) (19.6) +1.3Free cash flows Cash flows from investing activities Cash flows from operating activities Gain on sale of property Depreciation Profit before tax (¥ Bil.) Other Expenditures related to the additional inspection program for PW1100G-JM engines *1 Change in working capital *2 (¥ Bil.) Q1 FY2025 Q1 FY2026 Change R&D 7.0 9.3 +2.3 CAPEX 26.1 21.6 (4.4) Depreciation 18.1 20.6 +2.5
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*1: Expenditures related to the additional inspection program of PW1100G-JM engines are shown separately from conventional "changes in working capital“. *2: Change in working capital consists of change in trade receivables, contract assets, inventories, prepayments, contract liabilities, trade payables and refund liabilities. Working capital = Trade receivables + Contract assets + Inventories + Prepayments - Contract liabilities - Trade payables - Refund liabilities 33Copyright © 2024 IHI Corporation All Rights Reserved. Cash Flows / R&D / CAPEX / Depreciation (Forecasts of FY2026 announced in May vs August) (¥ Bil.) FY2025 FY2026 FY2026 Change Forecast (in May) Forecast (in August) August - May R&D 39.6 50.0 50.0 - CAPEX 97.6 130.0 130.0 - Depreciation 76.3 80.0 80.0 - FY2025 FY2026 FY2026 Change Forecast (in May) Forecast (in August) August - May 185.4 230.0 240.0 +10.0 76.3 80.0 80.0 - (22.4) (90.0) (93.0) (3.0) (48.8) (50.0) (50.0) - 26.6 (100.0) (100.0) - (95.9) 30.0 23.0 (7.0) 121.3 100.0 100.0 - (18.4) (25.0) (25.0) - (91.7) (130.0) (130.0) - 102.9 75.0 75.0 - Expenditures related to the additional inspection program of PW1100G-JM engines *1 Change in working capital *2 Other Cash flows from investing activities Profit before tax Depreciation Gain on sale of property (¥ Bil.) Cash flows from operating activities Capital expenditures, etc. included in Cash flows from investing activities Free cash flows
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ROIC = (Operating profit + Interest income and dividend income) after tax / (Equity attributable to owners of parent + Interest-bearing liabilities) ROE = Profit attributable to owners of parent / Equity attributable to owners of parent CCC = Working capital / Revenue * 365 days D/E ratio = Interest-bearing liabilities / Total equity Ratio of equity attributable to owners of parent = Equity attributable to owners of parent / Total liabilities and equity 34© IHI Corporation All Rights Reserved. (In billion yen) Financial Performance *1: Figures have been retrospectively adjusted for the 7-for-1 stock split implemented in October 2025. Rounded to the nearest second decimal place. *2: Excluding loss related to the IHI E&C litigation settlement impact and the additional inspection program for PW1100G-JM engines. *3: FY2026 forecasts exclude the impact of temporary factors(gain on sale of property and risk buffer). FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Q1 FY2026 FY2026 (Forecast) FY2026 (Forecast in May) Orders received 1,097.0 1,261.2 1,366.1 1,376.8 1,751.1 1,954.7 360.7 1,770.0 1,760.0 Revenue 1,112.9 1,172.9 1,352.9 1,322.5 1,626.8 1,643.4 374.5 1,840.0 1,830.0 Operating profit 27.9 81.4 81.9 (70.1) 143.5 165.5 73.2 250.0 240.0 Profit attributable to owners of parent 13.0 66.0 44.5 (68.2) 112.7 160.9 53.5 172.0 165.0 EPS [Yen] (*1) 12.59 62.82 42.07 (64.40) 106.41 151.88 50.48 161.67 155.09 EBITDA (*2) 92.3 91.1 151.1 175.0 215.6 241.8 93.8 330.0 320.0 Cash flows from operating activities 36.3 114.1 54.1 62.1 177.6 121.3 (43.2) 100.0 100.0 Cash flows from investing activities (40.4) 27.9 (52.3) (51.6) (58.8) (18.4) 23.6 (25.0) (25.0) Free cash flows (4.1) 142.0 1.7 10.4 118.8 102.9 (19.6) 75.0 75.0 Dividends per share (yen) (*1) (Interim/Year-end) 0 10.00 (4.29 / 5.71) 12.86 (5.71 / 7.14) 14.29 (7.14 / 7.14) 17.14 (7.14 / 10.00) 20.00 (10.00 / 10.00) - 23.00 (11.50 / 11.50) 23.00 (11.50 / 11.50) Operating margin [%] 2.5 6.9 6.1 (5.3) 8.8 10.1 19.5 13.6 13.1 ROIC [%] 2.2 6.4 6.3 (4.9) 10.5 11.0 - 10.5 10.1 ROE [%] 4.5 19.3 11.0 (16.9) 26.3 28.4 - 24.1 23.2 CCC [days] (*2) 124 112 120 132 115 109 - 120 120 D/E ratio [times] 1.85 1.24 1.14 1.43 1.01 0.72 0.67 0.54 0.54 Ratio of equity attributable to owners of parent [%] 16.4 20.3 22.2 17.9 21.5 26.9 28.3 32.6 31.8 （*3） （*3）
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© IHI Corporation All Rights Reserved. Number of Civil aero engines delivered Revenue mix of main units and aftermarket (image for reference) FY2025 Phase 1 (FY2026-FY2028) Phase 2 (FY2029-FY2031) 35 • Revenue from 2nd generation engine units will stay strong in Phase 1 • Profit will increase significantly after Phase 2, as aftermarket sales of 2nd generation engines expand. Revenue & Number of Civil Aero Engines Delivered Note: The sizes of the pie charts indicate the relative scale of revenue 1st generation engines: V2500, GE90, CF34 2nd generation engines: GEnx, PW1100G-JM, Passport20, GE9X Q1 Forecast GE Engines 810 684 681 798 477 332 337 331 330 390 116 GE90, GEnx, CF34, Passport20, GE9X V2500 340 272 180 47 5 16 20 6 19 22 7 PW1100G-JM 132 250 660 726 360 441 561 675 681 666 170 Total 1,282 1,206 1,521 1,571 842 789 918 1,012 1,030 1,078 293 1,330 （Units） FY17FY16 FY20 FY21FY18 FY19 NotesFY23 FY24 FY25FY22 FY26
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© IHI Corporation All Rights Reserved. 36 Revenue by Region & Number of Vehicular Turbochargers Delivered 未更新 IFRS Q1 Forecast 38.9 39.8 44.6 39.1 35.4 38.0 41.8 42.1 49.1 57.3 13.5 49.0 15.8 11.7 11.0 10.7 8.5 11.8 14.9 15.8 10.9 11.5 3.0 11.0 48.5 71.9 63.1 57.2 66.5 55.4 70.2 76.6 69.4 71.4 10.6 60.0 3.3 8.4 11.6 10.8 9.0 13.1 26.4 37.8 49.2 50.6 14.3 45.0 6.1 7.4 7.5 6.6 6.9 11.5 13.8 12.1 2.3 12.8 6.7 31.0 61.7 81.1 51.3 28.9 19.9 19.5 22.3 24.5 27.5 19.9 4.6 14.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.0 0.0 174.6 220.5 189.5 153.6 146.6 149.4 189.5 209.0 208.6 223.7 52.7 210.0 6.10 7.90 6.76 6.00 5.51 4.92 5.59 5.81 5.67 5.98 1.26 5.90The number of delivery (Million Units) Total Other FY22 Europe FY17 FY18 Central and South America Japan China Japanese GAAP (¥ Bil.) FY25 North America Asia FY16 FY23FY19 FY20 FY21 FY24 FY2026
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© IHI Corporation All Rights Reserved. 37 Revenue by Region & Number of Vehicular Turbochargers Delivered 38.9 36.7 37.4 47.4 52.3 52.2 55.9 52.7 1.50 1.38 1.23 1.40 1.45 1.42 1.50 1.26 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 FY2019 quarterly average FY2020 quarterly average FY2021 quarterly average FY2022 quarterly average FY2023 quarterly average FY2024 quarterly average FY2025 quarterly average Q1 FY26 The number of delivery (Million units) Revenue (¥ Bil.) Japan Asia China North America Central and South America Europe Number of delivery
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(2) Lease revenue and expenses in the Toyosu area (1) Lease revenue in the Toyosu area Urban development (3) Fair value of investment property of IHI (Group-Wide) © IHI Corporation All Rights Reserved. 38 FY26 1Q Lease revenue 9.3 9.2 9.3 9.4 12.3 12.1 12.2 12.0 12.2 12.9 2.9 FY21 IFRS FY16 FY17 FY18 FY19 FY20(¥ Bil.) Japanese GAAP FY23 FY24 FY25FY22 Depreciation Others Q1 FY2026 2.9 1.0 1.0 +0.8 (¥ Bil.) Lease revenue Lease expense Difference (¥ Bil.) FY2025 144.8 357.1 212.3 Fair value as of March 31, 2026 (B) (B) - (A)As of March 31, 2026 (A) Note: Amounts are shown as of the end of the previous year.
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© IHI Corporation All Rights Reserved. 39 Results and Projected Property Sales for FY2026 No. Property Subject to Sale Gain on Sale （Approx.￥ Bil.） Sale Timing Date of Announcement 1 Land and Buildings Koto-ku, Tokyo, Japan 15.3 Q1 FY2026 April 20, 2026 2 Land and Buildings Koto-ku, Tokyo, Japan 24.0 Q1 FY2026 April 20, 2026 3 Other Property (Multiple Properties) 0.7 Q1 FY2026 - Subtotal FY2026 1Q Results 40.0 4 Land Koto-ku, Tokyo, Japan 14.6 Q3 FY2026 June 12, 2026 5 Land and Buildings Koto-ku, Tokyo, Japan 8.8 Q4 FY2026 March 27, 2026 6 Other Property (Multiple Properties) 29.6 Within FY2026 - Subtotal FY2026 2Q Onward 53.0 Total Projected Sales for FY2026 93.0
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Forward-looking figures shown in this material with respect to IHI’s performance outlooks and other matters are based on management’s assumptions and beliefs in light of the information currently available, and therefore contain risks and uncertainties. Consequently, you should not place undue reliance on these performance outlooks in making judgments. Please be aware that actual results could differ materially from those discussed in these performance outlooks due to a number of important factors. These important factors include political environments in areas in which IHI operates, general economic conditions, and yen exchange rates including against the US dollar.