Kawasaki Heavy Industries (7012) Q4 2026 earnings summary

Executive summary

• Record revenue of JPY 2,311.3 billion and business profit of JPY 145.1 billion for FY2025, with net income of JPY 108.2 billion, marking the second consecutive year of record results.

• Comprehensive income surged 79.3% year-over-year to JPY 163.9 billion, reflecting strong operational and financial performance.

• FY2026/FY2027 forecasts anticipate revenue of JPY 2,560.0 billion and business profit of JPY 170.0 billion, with net income expected to reach JPY 110.0 billion.

• Progress continues toward FY2030 business profit margin target of over 10% in all segments.

• External risks from Middle East instability and US tariffs have been incorporated into forecasts.

Financial highlights

• Pre-tax income for FY2025 was JPY 145.5 billion, up JPY 38.0 billion year-over-year and JPY 23.5 billion above the February forecast.

• Net income increased by JPY 20.1 billion year-over-year, reaching JPY 108.1 billion.

• Foreign exchange gains of JPY 18.9 billion contributed to profit growth due to yen depreciation.

• Positive free cash flow recorded for the second consecutive year.

• Gross profit increased to JPY 454.9 billion, and basic EPS rose to JPY 129.41 post-split.

Outlook and guidance

• FY2026/FY2027 business profit forecast at JPY 170.0 billion, with revenue expected at JPY 2,560.0 billion.

• Net income expected to rise to JPY 110.0 billion, with basic EPS of JPY 131.61.

• Exchange rate assumption set at JPY 150 to the dollar.

• Progress toward FY2027 business profit margin target of 8% and FY2030 target of over 10%.

• Annual dividend per share projected to increase to JPY 40 in FY2026/FY2027 post-split.