Kawasaki Kisen Kaisha (9107) Q2 2025 earnings summary

Executive summary

• Operating revenues for H1 FY2024 rose by ¥81.6 billion (17.9% YoY) to ¥538.0 billion, exceeding forecasts by ¥5 billion.

• Net income attributable to owners of parent surged by ¥122.4 billion (201.3% YoY) to ¥183.2 billion, ¥21.2 billion above forecast.

• Growth was driven by robust Dry Bulk, Car Carrier, and Containership segments, with significant equity earnings from ONE.

• Foreign exchange gains in Q1 (+¥6.8 billion) and losses in Q2 (−¥15.4 billion) impacted results but did not affect cash flow.

• All major segments except Energy Resource Transport and Other recorded year-on-year profit growth.

Financial highlights

• Operating income for H1 FY2024 was ¥61.1 billion, up ¥16.9 billion (38.3% YoY).

• Ordinary income reached ¥187.3 billion, up ¥104.7 billion (126.8% YoY).

• EPS for the period was ¥268.58, up from ¥82.86, reflecting a 3-for-1 stock split.

• Equity capital stood at ¥1,580.8 billion; equity ratio at 76%; debt-to-equity ratio at 18%.

• Cash and cash equivalents at period end were ¥211.3 billion, down from ¥340.9 billion a year earlier.

Outlook and guidance

• FY2024 operating revenues are forecast at ¥1,030.0 billion (+7.5% YoY); operating income at ¥106.0 billion; ordinary income at ¥240.0 billion; net income at ¥235.0 billion (+130.4% YoY); EPS ¥347.90.

• Dividend forecast for FY2024 raised to ¥100/share, including an additional ¥15/share; share buyback of up to ¥90 billion or 36 million shares planned from Nov 2024 to Feb 2025.

• Assumed average exchange rate for FY2024 is ¥147.17; bunker price at $624/MT; each ¥1/$ change impacts income by ¥1.6 billion.

• Forecasts revised upward, mainly due to improved Product Logistics outlook.

• Market conditions expected to remain firm for Dry Bulk and Car Carrier; Containership faces supply-demand shifts due to new vessel deliveries.