Kawasaki Heavy Industries (7012) Q3 2026 earnings summary

Executive summary

• Third quarter FY2025 revenue reached ¥1,561.4 billion, up ¥154 billion year-on-year, with record highs in orders, revenue, and profit for a third quarter to date.

• Business profit rose to ¥82.4 billion, driven by strong Aerospace Systems and Energy Solution & Marine Engineering segments, offsetting weakness in Powersports & Engine due to U.S. tariffs and competition.

• Profit attributable to owners of parent increased to ¥65.8 billion, up ¥21.6 billion year-on-year, with full-year forecast revised upward to ¥90.0 billion on FX gains.

• Comprehensive income rose 73.0% year-on-year to ¥91,836 million.

• A 5-for-1 stock split and amendment to the Articles of Incorporation were approved to broaden the investor base.

Financial highlights

• Profit before tax increased to ¥88.8 billion, up ¥24.4 billion year-on-year, with a margin of 5.7%.

• Business profit for the nine months was ¥82,437 million, up from ¥79,039 million year-on-year.

• Basic earnings per share rose to ¥393.97 from ¥263.64 year-on-year.

• Net debt-to-equity ratio improved to 90.5% from the same period last year.

• Total assets grew to ¥3,286,731 million as of December 31, 2025.

Outlook and guidance

• Full-year revenue forecast for FY2025 is ¥2,340,000 million, up 9.9% year-on-year.

• Full-year business profit forecast is unchanged at ¥145.0 billion; profit attributable to owners of parent revised upward to ¥90.0 billion on FX gains.

• Dividend forecast revised upward to ¥166.0 per share for the year ending March 31, 2026.

• Orders received forecast revised upward by ¥90 billion to ¥2.62 trillion.

• Aerospace Systems and ES & M forecasts revised upward due to improved profitability; PS & E revised downward due to U.S. market challenges.