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Kawasaki Heavy Industries (7012) investor relations material
Kawasaki Heavy Industries Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q1 FY2025 revenue reached a record ¥488.4B, up 10% year-on-year, and business profit rose 21.1% to ¥20.5B, meeting performance forecasts.
Profit before tax declined 35% year-on-year to ¥16.8B, and profit attributable to owners of parent dropped 72.4% to ¥4.2B, mainly due to reduced FX gains and subsidiary share sale.
Comprehensive income fell sharply to ¥3.1B from ¥29.0B in the prior year period.
U.S. tariff policy had minimal Q1 impact but is factored into full-year forecasts; FX assumptions revised to ¥145/USD.
Orders received totaled ¥446.3B.
Financial highlights
Gross profit increased to ¥91.8B (+¥6.3B YoY), but gross margin slightly decreased to 18.8%.
Business profit margin improved to 4.2% from 3.8% YoY.
Free cash flow was negative ¥45.8B, a deterioration of ¥43.3B year-on-year, but Q1 showed an improving trend.
Cash and cash equivalents at quarter-end were ¥73.9B, down from ¥132.8B at the start of the period.
Net debt to equity ratio stood at 78.7%–88.6%, similar to the previous fiscal year.
Outlook and guidance
Full-year FY2025 revenue forecast is ¥2,290.0B, business profit ¥145.0B, profit before tax ¥115.0B, and net profit ¥82.0B; dividend forecast at ¥150 per share.
After-tax ROIC projected at 6.9% for FY2025.
Segment forecasts adjusted: upward for aerospace, rolling stock, energy solution, and precision machinery; downward for powersports and engine.
U.S. tariffs and cost increases expected to be offset by price strategies, cost control, and FX benefits.
Basic earnings per share for the year is forecast at ¥490.61.
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