Kawasaki Heavy Industries (7012) Q4 2026 earnings summary

Executive summary

• Revenue reached a record high for FY2025 at ¥2,311.3 billion, up 8.6% year-over-year, with business profit at ¥145.1 billion, up 1.4% year-over-year, and profit attributable to owners at ¥108.2 billion, up 22.9% year-over-year.

• Pre-tax and net profit significantly exceeded forecasts, mainly due to yen depreciation toward fiscal year-end.

• Comprehensive income surged 79.3% year-over-year to ¥163.9 billion, reflecting strong operational and financial performance.

• Strong performance in Aerospace Systems, Energy Solution & Marine Engineering, and Precision Machinery & Robot offset weakness in Powersports & Engine, which was impacted by U.S. tariffs.

• A 5-for-1 stock split was executed on April 1, 2026, to enhance share liquidity and broaden the investor base.

Financial highlights

• FY2025 revenue: ¥2,311.3B (+8.6% YoY); business profit: ¥145.1B (+1.4% YoY, margin 6.3%); profit attributable to owners: ¥108.2B (+22.9% YoY).

• Gross profit increased to ¥454.9B from ¥431.5B YoY; basic EPS rose to ¥129.41 post-split.

• Total assets grew to ¥3,324.6B, equity attributable to owners increased to ¥878.1B.

• Operating cash flow remained strong at ¥140.1B, despite increases in receivables and inventories.

• Dividend per share: FY2025 ¥34.2, FY2026 forecast ¥40.0; FY2026 dividend per share post-split ¥171.0, payout ratio 26.4%.

Outlook and guidance

• FY2026/FY2027 business profit forecast: ¥170.0B (+17.2% YoY), revenue expected at ¥2,560.0B (+10.8% YoY).

• Profit attributable to owners forecast at ¥110.0B, basic EPS ¥131.61.

• Assumes JPY150/USD exchange rate; business profit margin targeted to exceed 10% by FY2030.

• Dividend forecast for FY2027 is ¥40.0 per share post-split.

• Risks from Middle East instability and U.S. tariff policies are factored into guidance.