IHI's Expanding Aero Engine Aftermarket Reinforces Its Medium-Term Margin Outlook

IHI is a diversified Japanese engineering group, but its strategy is increasingly centered on aero engines, space, and defense, alongside selected lifecycle businesses in nuclear energy, infrastructure, and industrial systems. The company still operates across resources, energy and environment; social infrastructure; industrial systems and general-purpose machinery; and urban development, but the strategic direction is clear: reduce exposure to lower-return, project-based or commoditized activities and allocate more capital to businesses with stronger recurring revenue and qualification barriers.