Kawasaki Heavy Industries (7012) Q3 2026 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2025, rose 10.9% year-over-year to ¥1,561,403 million, with consolidated business profit at ¥82.4 billion, up ¥3.3 billion year-over-year, and profit attributable to owners of parent at ¥65.8 billion, up ¥21.6 billion year-over-year.

• Comprehensive income increased 73.0% year-over-year to ¥91,836 million.

• Strong performance in Aerospace Systems and Energy Solution & Marine Engineering offset weaker results in Powersports & Engine, which was impacted by U.S. tariff policies and increased competition.

• A stock split (1:5) and amendment to the Articles of Incorporation were approved to broaden the investor base.

• The full-year business profit forecast remains at a record ¥145.0 billion, with the profit attributable to owners of parent revised upward to ¥90.0 billion due to foreign exchange gains.

Financial highlights

• Q3 revenue rose to ¥1,561.4 billion, up ¥154.0 billion year-over-year, with a business profit margin of 5.3%.

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

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

• Total assets grew to ¥3,286,731 million as of December 31, 2025, from ¥3,016,951 million at March 31, 2025.

• Equity attributable to owners of parent increased to ¥807,694 million.

Outlook and guidance

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

• Full-year business profit forecast is unchanged at ¥145.0 billion, with the assumed FX rate at 145 yen/USD.

• Profit attributable to owners of parent is projected at ¥90,000 million, with basic EPS of ¥538.43.

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

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