Kawasaki Heavy Industries (7012) Q3 2025 earnings summary

Executive summary

• Achieved record-high Q3 FY2024 revenue and profit, reversing prior year losses and aligning with November forecasts.

• Significant profit recovery led by Aerospace Systems, with all major segments except Powersports & Engine posting year-over-year profit growth.

• Net profit attributable to owners was ¥44.2 billion, reversing a ¥13.5 billion loss in the prior year; EPS improved to ¥263.64.

• Comprehensive income reached ¥53.1 billion, up from ¥8.0 billion in the previous year.

• Full-year pre-tax and net income forecasts revised upward by ¥5 billion each, reflecting recent conditions and FX gains.

Financial highlights

• Q3 FY2024 revenue: ¥1,407.3 billion (+¥178.2 billion YoY); business profit: ¥79.0 billion (+¥78.2 billion YoY); net profit: ¥44.1 billion (+¥57.6 billion YoY).

• Gross margin improved to 20.9% from 15.5% YoY; business profit margin rose to 5.6% from 0.1%.

• Operating cash flow improved but remained negative due to higher inventories, with a cash outflow of ¥78.1 billion.

• Interest-bearing debt increased to ¥908.2 billion; net D/E ratio at 115.1%.

• Total assets grew to ¥3,045.8 billion as of December 31, 2024.

Outlook and guidance

• Full-year revenue forecast raised to ¥2,160.0 billion; business profit projected at ¥130.0 billion; net profit at ¥78.0 billion.

• Orders forecast raised by ¥130 billion to ¥2.56 trillion, driven by new subway car and defense orders.

• After-tax ROIC expected at 7.2%; annual dividend per share maintained at ¥140.