IHI Corporation
7013.THIGHScore: 73.4Equipment / SMR · Weight: 13%· Data as of 2026-05-02
Investment Thesis
Japan's most direct SMR supply chain play: X-energy partnership (Mar 2026) positions IHI to supply fabricated nuclear components into the US market. NuScale investor ($20M) and preferred manufacturer. GCAP fighter engine consortium (IHI/Rolls-Royce/Avio Aero) transition to fully integrated international collaboration (Sep 2025). Atsushi Sato appointed president of Aero-Engine, Space & Defense BA (Apr 2026), signaling strategic commitment to defence/nuclear. 9M FY2026: NI +10.7% despite revenue -1.8% — margin expansion. Aero engine segment (GE/P&W JVs) provides high-margin earnings base.
Risk
SMR timelines uncertain. Stock +155% in 52 weeks (peak ¥4,698; currently ¥3,153 = 33% off high) — partial correction ongoing. Full-year FY2026 results due May 8. Aero segment exposed to PW1100G inspection costs. Revenue -1.8% YoY 9M despite profit growth suggests mix/timing issues.
Monitoring Trigger
May 8 FY2026 results: watch for NI upgrade and FY2027 guidance. If X-energy or NuScale reach construction milestones, increase. GCAP: if engine JV milestone announced (first flight target 2035), upgrade conviction. If stock corrects below ¥2,500 (~20% from current), consider adding.
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Aero, Space & Defense | ¥556B | 34% | Jet engines (GE/P&W JVs), GCAP fighter engine, rocket motors |
| Resources, Energy & Environment | ¥411B | 25% | Nuclear components, boilers, carbon solutions |
| Industrial Systems | ¥485B | 30% | Engines, industrial equipment |
| Social Infrastructure | ¥162B | 10% | Bridges, water gates |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | X-energy | SMR component fabrication | MOU signed March 2026 for US-Japan SMR supply chain |
| confirmed | NuScale Power | SMR preferred manufacturer | $20M investment + JNI JV with JGC |
| confirmed | GE Vernova | Aero engine JV partner | Long-standing CF34/GEnx engine programs |
| probable | Japanese nuclear utilities | Reactor vessels, containment | Historical domestic nuclear supplier |