Kawasaki Heavy Industries (7012) Investor update summary

Financial performance and targets

• FY2024 and FY2025 delivered record revenue and business profit; FY2026 records are forecast, with revenue of ¥2.56tn and business profit of ¥180bn.

• FY2030 targets are revenue of ¥3.3tn+, business profit of ¥330bn+, and a business profit margin of 10%+.

Capital and investment priorities

• Raised ~¥200bn in July 2026 through a ~¥100bn public offering and ~¥100bn in convertible bonds, targeting net D/E around 50%.

• FY2027–FY2030 cash allocation is ~¥1.3tn, directed to profitable core businesses and long-term growth areas including semiconductor robots, Physical AI, hydrogen, gas turbines, ships, and aerospace.

• Higher robot and gas turbine output and Physical AI productivity gains support near-term growth; hydrogen and Physical AI are expected to deliver the largest long-term returns, starting around 2028.

Strategic positioning

• Three businesses expected to take larger revenue shares by FY2030: Aerospace Systems, Energy Solution & Marine, and Precision Machinery & Robot.

• Covers 8 of Japan’s 17 strategic fields, including defense, aviation and space, shipbuilding, energy, AI and semiconductors, and digital technologies and cybersecurity.

• Growth priorities reflect rising security needs, AI and data-center electricity demand, energy price increases, and a global shift back to natural gas.