Kawasaki Kisen Kaisha (9107) Q3 2026 earnings summary

Executive summary

• Operating revenues for the first nine months of FY2025 were JPY 767.7 billion, down JPY 37.2 billion or 4.6% year-on-year.

• Operating income fell to JPY 68.7 billion, a decrease of JPY 23.5 billion or 25.5% year-on-year.

• Net income attributable to owners of parent was JPY 102.6 billion, down JPY 182.1 billion or 64.0% year-on-year.

• Declines were driven by yen appreciation, higher operating expenses, weak market conditions in key segments, and a significant drop in equity-method income from Ocean Network Express (ONE).

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

Financial highlights

• Ordinary income for Q3 FY2025 was JPY 88.6 billion, a decrease of JPY 200.2 billion or 69.3% year-on-year.

• Equity capital increased to JPY 1,739.7 billion, and the equity ratio rose to 76.1%.

• Debt-to-equity ratio at 17.8%, improved from 20.9% year-on-year.

• Total assets increased to JPY 2,286.3 billion, and net assets rose to JPY 1,777.4 billion as of December 31, 2025.

• Gross profit for the nine months was JPY 130.6 billion, down from JPY 150.6 billion year-over-year.

Outlook and guidance

• Full-year FY2025 forecast: operating revenues JPY 1,006 billion, down JPY 41.9 billion or 4.0% year-on-year.

• Operating income expected at JPY 84 billion, ordinary income at JPY 100 billion, net income at JPY 115 billion.

• Net income guidance was revised upward by JPY 10 billion due to deferred tax asset adjustments.

• Dividend for FY2025 maintained at JPY 120 per share; FY2026 dividend planned at JPY 120 per share, with an increase of JPY 20 from prior guidance.

• Management expects firm demand in dry bulk and car carrier businesses but notes ongoing geopolitical and economic risks.