Kawasaki Kisen Kaisha (9107) Q2 2026 earnings summary

Executive summary

• Operating revenues for the first half of FY2025 were ¥500.5–500.6 billion, down ¥37.4 billion or 7.0% year-over-year, with operating income at ¥42.9 billion, a decrease of ¥18.1 billion or 29.7% year-over-year.

• Net income attributable to owners was ¥68.6 billion, down ¥114.5 billion or 62.5% year-over-year, mainly due to lower equity-method income from ONE and decreased segment profits.

• Ordinary income declined to ¥59.6–59.7 billion, down ¥127.6 billion or 68.1% year-over-year.

• Extraordinary income was recorded from gains on vessel and subsidiary share sales, totaling ¥14.1 billion.

• Comprehensive income decreased 46.7% to ¥62.0 billion.

Financial highlights

• Equity capital at end-Q2 FY2025 was ¥1,683.9 billion; interest-bearing liabilities were ¥312.2 billion; debt-equity ratio improved to 18.5%; equity ratio was 75.6%.

• Gross profit for the period was ¥83.9 billion, down from ¥99.8 billion year-over-year.

• Off-balance sheet assets and liabilities (charter hire) estimated at ¥600–700 billion; adjusted consolidated equity ratio 58–60%.

• Net cash provided by operating activities was ¥188.6 billion; cash and cash equivalents rose to ¥327.5 billion.

• Profit per share for the six months was ¥108.61, down from ¥268.58 year-over-year.

Outlook and guidance

• FY2025 forecast: operating revenues ¥984.0 billion (down ¥63.9 billion YoY), operating income ¥86.0 billion (down ¥16.8 billion YoY), ordinary income ¥100.0 billion (down ¥208 billion YoY), net income ¥105.0 billion (down ¥200.3 billion YoY).

• Annual dividend forecast maintained at ¥120 per share, with interim and year-end dividends of ¥60 each.

• Assumes continued use of Cape of Good Hope route, no Suez Canal resumption, and U.S. TR port charges not factored in.

• Operating cash flow forecast through FY2026 remains at ¥1.5 trillion; investment plan unchanged at ¥610 billion.

• Management expects generally firm demand in dry bulk and car carrier businesses but notes ongoing risks from global trade policies and geopolitical tensions.