IHI stock faces JPY 14.0 billion loss from subsidiary transfer

Published on 10/05/2026 at 16:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

IHI stock closed at JPY 2,720 on October 5, 2026, after a planned subsidiary transfer brought a JPY 14.0 billion loss into view. Fiscal 2027 guidance is unchanged.

IHI, JP3134800006, Illustration mit AI erstellt.

IHI Corporation stock (ISIN JP3134800006) closed at JPY 2,720 on the Tokyo Stock Exchange on October 5, 2026, up 0.46 percent from JPY 2,707.50. The company is transferring its German subsidiary Steinmüller Engineering, a restructuring move that brings a planned JPY 14.0 billion consolidated loss into the fiscal year ending March 31, 2027.

Restructuring adds a cost

IHI Corporation said on September 29, 2026, that it had decided on September 28 to transfer 100 percent of Steinmüller Engineering to a subsidiary of Mutares. The transfer price was not disclosed, while the transaction is scheduled for mid-October 2026.

The company expects the transaction to produce a JPY 14.0 billion loss in consolidated other expenses and a JPY 17.0 billion extraordinary loss in its non-consolidated accounts. IHI also stated that its consolidated earnings forecast for fiscal 2027 remains unchanged.

Guidance follows a strong quarter

IHI reported fiscal 2027 first-quarter revenue of JPY 374.55 billion and earnings of JPY 53.52 billion, while actual GAAP earnings per share reached JPY 50.48 against an estimate of JPY 39.05, according to Yahoo Finance. The reported quarter ended June 30, 2026, and its profit margin was 14.29 percent.

For the fiscal year ending March 31, 2027, IHI guides to JPY 1.840 trillion in revenue, JPY 250.0 billion in operating profit and JPY 172.0 billion in profit attributable to owners of the parent. Against fiscal 2026 operating profit of JPY 165.534 billion, the guidance represents a materially higher earnings plan, although the Steinmüller charge adds a defined counter-factor.

Analysts see room above JPY 2,720

A US brokerage kept its bullish rating on September 18, 2026, but cut its target from JPY 4,950 to JPY 3,500, as reported by Yahoo Finance Japan. The same report put the consensus rating at 4.36 from 11 analysts and the consensus target at JPY 3,665.

A separate consensus update placed the average target at JPY 3,546.36 on September 30, 2026, versus the October 5 price of JPY 2,720. The target lies 30.4 percent above the price, while the 52-week range of JPY 2,245 to JPY 4,698 shows that the stock remains 42.1 percent below its yearly high.

IHI stock carries a JPY 2.9 trillion value

IHI stock had a market capitalization of JPY 2.9 trillion and volume of 8,104,300 shares on October 5, 2026. The next earnings date listed for IHI is November 4, 2026, giving the unchanged fiscal 2027 guidance a clear checkpoint.