Kawasaki Kisen Kaisha (9107) Q2 2026 earnings summary

Executive summary

• Operating revenues for the first half of FY2025 were ¥500.5–500.6 billion, down ¥37.4 billion or 7.0% year-over-year; operating income was ¥42.9 billion, a decrease of ¥18.1 billion or 29.7% year-over-year.

• Net income attributable to owners was ¥68.6 billion, down ¥114.5 billion or 62.5% year-over-year, mainly due to lower equity-method income from ONE and decreased segment profits.

• Ordinary income fell to ¥59.6–59.7 billion, a decrease of ¥127.6 billion or 68.1% year-over-year.

• Profitability was impacted by yen appreciation, higher car carrier costs, and lower equity method income from ONE.

• Extraordinary income was recorded from gains on vessel and subsidiary share sales.

Financial highlights

• Equity capital at end-Q2 FY2025 was ¥1,683.9 billion; interest-bearing liabilities were ¥312.2 billion.

• Debt-to-equity ratio was 18.5%; equity ratio was 75.6%.

• Extraordinary income rose to ¥14.1 billion, mainly from gains on sales of non-current assets and shares.

• Net cash provided by operating activities increased to ¥188.6 billion; cash and cash equivalents at period end were ¥327.5 billion.

• Gross profit for the period was ¥83.9 billion, down from ¥99.8 billion year-over-year.

Outlook and guidance

• FY2025 forecast: operating revenues ¥984.0 billion (down ¥63.9 billion YoY), operating income ¥86.0 billion, ordinary income ¥100.0 billion, net income ¥105.0 billion (down ¥200.3 billion YoY).

• Annual dividend forecast for 2025 is ¥120 per share, with interim and year-end dividends of ¥60 each.

• Additional shareholder returns under review; flexible additional return of ¥50 billion or more planned by FY2026.

• No impact from USTR port charges factored in; Suez Canal not used in forecasts; assumes continued use of Cape of Good Hope route.

• Management expects generally firm demand in dry bulk and car carrier businesses but notes ongoing risks from global trade policies and geopolitical tensions.