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Financial results presentation7012Kawasaki Heavy Industries,Ltd.Automobiles and transportation equipment

Financial Results Presentation for Fiscal 2025

In FY2025, revenue, orders received and business profit exceeded the previous fiscal year, with business profit reaching a record high. For FY2026, the plan assumes an exchange rate of ¥150 to the US dollar and calls for business profit to increase to ¥170 billion, setting another record, while orders received are expected to decline.

Worth reading
83Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
249
Hundreds of millions of yen
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFull-year FY2025 (fiscal year ended March 2026), and FY2026 (fiscal year ending March 2027) earnings forecast11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales23,112 Hundreds of millions of yen+8.5%
Ordinary income1,455 Hundreds of millions of yen+35.3%
Net income1,081 Hundreds of millions of yen+22.8%
Gross Profit Margin19.7%
Selling, general and administrative expenses3,287 Hundreds of millions of yen
Results for the three months of the current quarter
Revenue7,498 Hundreds of millions of yen
Business profit626 Hundreds of millions of yen
Income before taxes566 Hundreds of millions of yen
Profit for the period attributable to owners of the parent423 Hundreds of millions of yen
Full-year earnings forecast
Orders received
25,400 Hundreds of millions of yen
Revenue
25,600 Hundreds of millions of yen
Business profit
1,700 Hundreds of millions of yen
Profit before tax
1,470 Hundreds of millions of yen
Profit for the period attributable to owners of the parent
1,100 Hundreds of millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Total
Foreign Exchange Volatility-¥9.8 billion
Revenue Volatility+¥41.9 billion
Cost increases resulting from US tariff policy-¥18.7 billion
Changes in sales mix and other factors+¥8 billion
Share of profit or loss of investments accounted for using the equity method+¥900 million
Change in SG&A expenses-¥20.4 billion
Total change+¥1.9 billion
FY2026 forecast
Foreign Exchange VolatilityApproximate figures shown (bridge from FY2025 business profit to the FY2026 forecast)
Revenue VolatilityApproximate figures shown
Cost increases resulting from US tariff policy-¥15 billion
Changes in sales mix, SG&A expenses and other factorsApproximate figures shown
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • USD/JPY exchange-rate assumption150 JPY/USD
  • EUR/JPY exchange-rate assumption180 JPY/EUR
  • Middle East situationAssumes the distribution of crude oil and other commodities will return to normal by the end of June
  • Impact of the situation in the Middle East included in the forecast¥80 100 million impact on business profit
New initiatives
  • Rebuild the aerospace business supply chain and production expansion framework
  • Improve operational efficiency and productivity
  • Advance the development of defense aircraft and helicopters and fulfill mass-production contracts
  • Initiatives in the 7 priority areas for strengthening defense capabilities
  • Develop environmental technologies using the NEDO Green Innovation Fund
  • Establish a finance joint venture for US users in PS&E
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received27,391 Hundreds of millions of yen
    Year on year against the same period last year+¥108.4 billion
  • After-tax ROIC9.0%
    Year on year against the same period last year+1.0pt
  • Revenue-weighted average rate (USD/JPY)149.08 JPY/USD
    Year on year against the same period last year-¥1.73
  • Foreign-currency exposure affecting earnings22 USD 100 million
    Year on year against the same period last year+USD 260 million
  • Free cash flow120 Hundreds of millions of yen
    Year on year against the same period last year-¥25.7 billion
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Boeing 767 workshare aircraft deliveries31 satellites
    Year on year against the same period last year+12 aircraft
  • Boeing 777 workshare aircraft deliveries21 satellites
    Year on year against the same period last year+2 aircraft
  • Boeing 777X workshare aircraft deliveries7 satellites
    Year on year against the same period last year+2 aircraft
  • Boeing 787 workshare aircraft deliveries64 satellites
    Year on year against the same period last year+6 aircraft
  • V2500 major aero-engine workshare units delivered21 Units
    Year on year against the same period last year+1 unit
  • PW1100G major aero-engine workshare units delivered666 Units
    Year on year against the same period last year-15 units
Segment results
  • Aerospace Systems
    Orders received8,109
    Revenue6,136
    Business profit624
    Year-on-year change in business profit+¥6.6 billion
  • Vehicle
    Orders received3,191
    Revenue2,362
    Business profit86
    Year-on-year change in business profit+¥200 million
  • Energy Solution & Marine
    Orders received5,529
    Revenue4,335
    Business profit550
    Year-on-year change in business profit+¥10.7 billion
  • Precision Machinery & Robotics
    Orders received2,785
    Revenue2,591
    Business profit143
    Year-on-year change in business profit+¥7.3 billion
  • Power Sports & Engine
    Orders received6,817
    Revenue6,828
    Business profit227
    Year-on-year change in business profit-¥25.1 billion
  • Other
    Orders received959
    Revenue858
    Business profit70
    Year-on-year change in business profit+¥1.8 billion
Medium-term management plan targets
TargetBusiness profit margin of more than 10%
Target fiscal year2,030 %
Progress assessmentProgressing as planned
Financial targets
After-tax ROIC
FY2025 actual9.0%
FY2026 forecast8.6%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • Down ¥8 billion
    RiskDifficulties procuring materials and production delays caused by the situation in the Middle East, and higher procurement and fuel prices
  • -¥15 billion
    RiskUS import tariff costs
Orders received and order backlog
Orders received
FY2025 actual27,391 Hundreds of millions of yen
FY2026 forecast25,400 Hundreds of millions of yen
Capital expenditures
¥1,177 100 million cash outflows for the acquisition of property, plant and equipment and intangible assets
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFull-year FY2025 (fiscal year ended March 2026), and FY2026 (fiscal year ending March 2027) earnings forecast
Net Sales23,112 Hundreds of millions of yen (YoY +8.5%)
Ordinary income1,455 Hundreds of millions of yen (YoY +35.3%)
Net income1,081 Hundreds of millions of yen (YoY +22.8%)
Gross Profit Margin19.7%
Selling, general and administrative expenses3,287 Hundreds of millions of yen
Results for the three months of the current quarterRevenue 7,498 Hundreds of millions of yen / Business profit 626 Hundreds of millions of yen / Income before taxes 566 Hundreds of millions of yen / Profit for the period attributable to owners of the parent 423 Hundreds of millions of yen
Full-year earnings forecastOrders received 25,400 Hundreds of millions of yen / Revenue 25,600 Hundreds of millions of yen / Business profit 1,700 Hundreds of millions of yen / Profit before tax 1,470 Hundreds of millions of yen / Profit for the period attributable to owners of the parent 1,100 Hundreds of millions of yen
Segment resultsSegment Aerospace Systems / Orders received 8,109 Hundreds of millions of yen / Revenue 6,136 Hundreds of millions of yen / Business profit 624 Hundreds of millions of yen / Year-on-year change in business profit +¥6.6 billion, Segment Vehicle / Orders received 3,191 Hundreds of millions of yen / Revenue 2,362 Hundreds of millions of yen / Business profit 86 Hundreds of millions of yen / Year-on-year change in business profit +¥200 million, Segment Energy Solution & Marine / Orders received 5,529 Hundreds of millions of yen / Revenue 4,335 Hundreds of millions of yen / Business profit 550 Hundreds of millions of yen / Year-on-year change in business profit +¥10.7 billion, Segment Precision Machinery & Robotics / Orders received 2,785 Hundreds of millions of yen / Revenue 2,591 Hundreds of millions of yen / Business profit 143 Hundreds of millions of yen / Year-on-year change in business profit +¥7.3 billion, Segment Power Sports & Engine / Orders received 6,817 Hundreds of millions of yen / Revenue 6,828 Hundreds of millions of yen / Business profit 227 Hundreds of millions of yen / Year-on-year change in business profit -¥25.1 billion, Segment Other / Orders received 959 Hundreds of millions of yen / Revenue 858 Hundreds of millions of yen / Business profit 70 Hundreds of millions of yen / Year-on-year change in business profit +¥1.8 billion
Breakdown of Factors Affecting the ChangeTotal Foreign Exchange Volatility -¥9.8 billion / Revenue Volatility +¥41.9 billion / Cost increases resulting from US tariff policy -¥18.7 billion / Changes in sales mix and other factors +¥8 billion / Share of profit or loss of investments accounted for using the equity method +¥900 million / Change in SG&A expenses -¥20.4 billion / Total change +¥1.9 billion / FY2026 forecast Foreign Exchange Volatility Approximate figures shown (bridge from FY2025 business profit to the FY2026 forecast) / Revenue Volatility Approximate figures shown / Cost increases resulting from US tariff policy -¥15 billion / Changes in sales mix, SG&A expenses and other factors Approximate figures shown
Key KPIsIndicator name Orders received / Value 27,391 Hundreds of millions of yen / Year on year against the same period last year +¥108.4 billion, Indicator name After-tax ROIC / Value 9.0% / Year on year against the same period last year +1.0pt, Indicator name Revenue-weighted average rate (USD/JPY) / Value 149.08 JPY/USD / Year on year against the same period last year -¥1.73, Indicator name Foreign-currency exposure affecting earnings / Value 22 USD 100 million / Year on year against the same period last year +USD 260 million, Indicator name Free cash flow / Value 120 Hundreds of millions of yen / Year on year against the same period last year -¥25.7 billion
Unit price and quantity metricsIndicator name Boeing 767 workshare aircraft deliveries / Value 31 satellites / Year on year against the same period last year +12 aircraft, Indicator name Boeing 777 workshare aircraft deliveries / Value 21 satellites / Year on year against the same period last year +2 aircraft, Indicator name Boeing 777X workshare aircraft deliveries / Value 7 satellites / Year on year against the same period last year +2 aircraft, Indicator name Boeing 787 workshare aircraft deliveries / Value 64 satellites / Year on year against the same period last year +6 aircraft, Indicator name V2500 major aero-engine workshare units delivered / Value 21 Units / Year on year against the same period last year +1 unit, Indicator name PW1100G major aero-engine workshare units delivered / Value 666 Units / Year on year against the same period last year -15 units
Assumptions Underlying the Business OutlookItem USD/JPY exchange-rate assumption / Value 150 JPY/USD, Item EUR/JPY exchange-rate assumption / Value 180 JPY/EUR, Item Middle East situation / Value Assumes the distribution of crude oil and other commodities will return to normal by the end of June, Item Impact of the situation in the Middle East included in the forecast / Value ¥80 100 million (impact on business profit)
Risk amount incorporated into the outlookRisk Difficulties procuring materials and production delays caused by the situation in the Middle East, and higher procurement and fuel prices / Amount Down ¥8 billion, Risk US import tariff costs / Amount -¥15 billion
Medium-term management plan targetsTarget Business profit margin of more than 10% / Target fiscal year 2,030 % / Progress assessment Progressing as planned
Financial targetsAfter-tax ROIC FY2025 actual 9.0% / FY2026 forecast 8.6%
Capital expenditures¥1,177 100 million (cash outflows for the acquisition of property, plant and equipment and intangible assets)
Orders received and order backlogOrders received FY2025 actual 27,391 Hundreds of millions of yen / FY2026 forecast 25,400 Hundreds of millions of yen / Order backlog Not disclosed
New initiativesRebuild the aerospace business supply chain and production expansion framework, Improve operational efficiency and productivity, Advance the development of defense aircraft and helicopters and fulfill mass-production contracts, Initiatives in the 7 priority areas for strengthening defense capabilities, Develop environmental technologies using the NEDO Green Innovation Fund, Establish a finance joint venture for US users in PS&E
Items this document does not state (11)
Operating profitOperating profit marginProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAnnual DividendPayout ratioAcquisition of treasury sharesMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, profit increases in Aerospace Systems, Energy Solution & Marine, and Precision Machinery & Robotics offset the decline in Power Sports & Engine. In FY2026, the company plans to absorb cost increases resulting from US tariff policy through the effects of higher revenue and price adjustments, while ¥8 billion in business profit has been factored in for the effects of difficulties procuring materials and production delays caused by the situation in the Middle East.

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Financial Results Presentation for Fiscal 2025 | Kawasaki Heavy Industries,Ltd. (7012) timely disclosure | Komori