Kawasaki Heavy Industries Ltd. · TSE:7012
Kawasaki Heavy Industries — Kawasaki Heavy Industrial — Q3 2025 Earnings Presentation
54 slides from Kawasaki Heavy Industries's earnings presentation, Feb 10, 2026
Slide 1: Financial Results for Third Quarter FY2025
Financial Results for Third Quarter FY2025 For the year ending March 31, 2026 February 9, 2026
Slide 2: Financial Results and Performance Forecast Highlights
0 Financial Results and Performance Forecast Highlights Consolidated Financial Results for Third Quarter FY2025 Business profit totaled 82.4 billion yen, up 3.3 billion yen YoY, progressing well at 57% toward the full-year forecast of 145.0 billion yen (55% in the previous fiscal year) Strong perfor
Slide 3: Table of Contents
0 Table of Contents Consolidated Financial Results 1 for Third Quarter FY2025 3 Details by Segment Summary 5 Aerospace Systems 21 Segment 6 Rolling Stock 26 Statement of Profit and Loss 7 Energy Solution & Marine Engineering 29 （ES&M） Factors Affecting Changes in Business Profit 9 Precision Machiner
Slide 4: Consolidated Financial Results for Third Quarter FY2025
1 Consolidated Financial Results for Third Quarter FY2025 © Kawasaki Heavy Industries, Ltd. All Rights Reserved 4
Slide 5: Consolidated Financial Results Summary
Consolidated Financial Results for Third Quarter FY2025 1 –Summary- Revenue and business profit grew YoY, with orders received, revenue, and business profit all marking record highs for the third quarter Overall results were broadly in line with expectations, despite variations among business segmen
Slide 6: Segment
Consolidated Financial Results for Third Quarter FY2025 1 –Segment- ES&M posted higher revenue and business profit, driven by continued strong performance in areas including Energy and Ship & Offshore Structure 1 PS&E posted revenue growth, but business profit declined due to higher tariff costs and
Slide 7: Statement of Profit and Loss
Consolidated Financial Results for Third Quarter FY2025 1 –Statement of Profit and Loss- (billion yen) Details FY24 Q3 FY25 Q3 Change % % Revenue 1,407.3 100.0 1,561.4 100.0 + 154.0 ① Selling, general and administrative expenses Cost of Sales 1,113.4 79.1 1,260.4 80.7 + 146.9 increased in line with
Slide 8: Statement of Profit and Loss
Consolidated Financial Results for Third Quarter FY2025 1 –Statement of Profit and Loss- (billion yen) Details FY24 Q3 FY25 Q3 Change % % Finance Income and Finance Costs - 14.5 6.4 + 21.0 ➂ USD/JPY rate 149.53 Q4/E FY24 Net interest Expense (incl. dividend income) - 7.7 - 8.5 - 0.8 156.54 Q3/E FY25
Slide 9: Factors Affecting Changes in Business Profit
Consolidated Financial Results for Third Quarter FY2025 1 –Factors Affecting Changes in Business Profit– Increased sales in PS&E contributed to change in revenue Improvements in profitability of ES&M significantly influences change in product mix and other factors, while PS&E deteriorated significan
Slide 10: Factors Affecting Changes in Business Profit
Consolidated Financial Results for Third Quarter FY2025 1 –Factors Affecting Changes in Business Profit- (billion yen) FY24 Q3 Details of change FY25 Q3 Business Change in Business Effects of Change in Change in share of profit (loss) Change in Profit product mix and of investments SG&A Total Profit
Slide 11: Statement of Financial Position
Consolidated Financial Results for Third Quarter FY2025 1 –Statement of Financial Position- (billion yen) End of End of Change Details Mar 2025 % Dec 2025 % Cash and Cash Equivalents 132.7 108.7 - 24.0 ① Increased in PS&E and Trade Receivables (Incl. contract assets) 888.8 910.0 + 21.1 Aerospace Sys
Slide 12: Statement of Financial Position
Consolidated Financial Results for Third Quarter FY2025 1 –Statement of Financial Position- (billion yen) End of End of Change Mar 2025 % Dec 2025 % Details Trade Payables 512.1 545.8 + 33.7 3 ③ The increase in borrowings Interest-Bearing Debt 692.5 851.7 + 159.2 compared with last year’s year-end i
Slide 13: Statement of Cash Flows
Consolidated Financial Results for Third Quarter FY2025 1 –Statement of Cash Flows- (billion yen) FY24 Q3 FY25 Q3 Change Details Profit Before Tax 64.4 88.8 + 24.4 ① FY2024 Q3： Depreciation and Amortization 65.3 76.8 + 11.4 Despite an increase in contract liabilities (advances Increase and Decrease
Slide 14: Cash Flows
Consolidated Results for Third Quarter FY2025 1 –Cash Flows- Working capital grew over past three years, and its contribution to cash flow has gradually become evident Operating CF continued to improve, despite posting a negative result in Q3 FY2025 (billion yen) CF from operating acitivities CF fro
Slide 15: Earnings Forecasts for FY2025
2 Earnings Forecasts for FY2025 (for the year ending March 31, 2026) © Kawasaki Heavy Industries, Ltd. All Rights Reserved 15
Slide 16: Earnings Forecasts for FY2025 Summary
Earnings Forecasts for FY2025 2 -Summary- Full-year business profit forecast remains unchanged from the previous announcement, although performance varied by business segment Pre-tax profit and profit attributable to owners of parent have been revised upward from the previous announcement, reflectin
Slide 17: Factors Affecting Changes in Business Profit
Earnings Forecasts for FY2025 2 -Factors Affecting Changes in Business Profit※1 - Note: The graph shows the variance from the forecast announced in May. Please refer to page 47 for changes from the forecast announced in November. Mitigate the impact of profitability deterioration from higher costs d
Slide 18: Earnings Forecasts Segment
Earnings Forecasts for FY2025 2 -Segment- Aerospace Systems and ES&M were revised upward due to improved profitability 1 PS&E was revised downward due to profitability deterioration from stronger competition in the U.S. powersports market and other factors 2 (billion yen) Orders Received Revenue Bus
Slide 19: Intentionally blank slide
Intentionally blank slide © Kawasaki Heavy Industries, Ltd. All Rights Reserved 19
Slide 20: Details by Segment
3 Details by Segment © Kawasaki Heavy Industries, Ltd. All Rights Reserved 20
Slide 21: Aerospace Systems
Details by Segment 3 -Aerospace Systems- Q3 of FY2025（vs. Q3 of FY2024） FY2025 Forecast（vs. forecast in November） Orders Down due to the rebound from last Orders Revised up due to strong orders for Received year’s large MOD* order, despite higher Received commercial aircraft engines and MOD -¥93.3 b
Slide 22: Aerospace Systems
Details by Segment 3 -Aerospace Systems- (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q4 FCST Orders Received 680.1 586.7 - 93.3 882.8 720.0 750.0 - 132.8 + 30.0 163.3 Aerospace 548.3 452.1 - 96.2 699.5 520.0 5
Slide 23: Aerospace Systems
Details by Segment 3 -Aerospace Systems- Revenue (billion yen) Aerospace Aero Engines 213.3 160.6 140.9 146.2 129.1 120.3 110.2 106.3 104.9 101.5 93.3 93.5 81.5 80.2 48.9 70.0 71.5 63.2 63.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2021 FY2022 FY2023 FY2024 FY2025 Business Profit (
Slide 24: Aerospace Systems
Details by Segment 3 -Aerospace Systems- Market Overview Specific Efforts Commercial business Preparation for business expansion – Air passenger demand shifted from recovery – Arranging supply chain and production system for production increase to growth phase, and demand for both aircraft and e
Slide 25: Rolling Stock
Details by Segment 3 - Rolling Stock - Q3 of FY2025（vs. Q3 of FY2024） FY2025 Forecast（vs. forecast in November） Orders Up primarily due to the order for new Orders Forecast remains unchanged Received subway cars for the New York City Received +¥244.6 bil. Transit Authority ±¥0 bil. Revenue Up due to
Slide 26: Rolling Stock
Details by Segment 3 - Rolling Stock - (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q4 FCST Orders Received 41.0 285.7 + 244.6 251.5 300.0 300.0 + 48.5 - 14.3 Domestic & Asia 35.5 61.9 + 26.3 52.3 90.0 90.0 + 3
Slide 27: Rolling Stock
Details by Segment 3 - Rolling Stock - Revenue (billion yen) Domestic & Asia 79.5 North America 64.1 60.1 55.6 55.2 57.3 51.6 43.5 43.8 43.2 39.5 40.6 37.5 31.5 32.1 33.7 28.7 28.8 26.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2021 FY2022 FY2023 FY2024 FY2025 Business Profit 7.3% (
Slide 28: Rolling Stock
Details by Segment 3 - Rolling Stock - Market Overview Specific Efforts Domestic Market Compliance with delivery schedules for – Resumption of investment in rolling stock due to overseas projects recovery of inbound Dhaka ‣Final vehicle delivered to customer in FY2024 (144 cars of 24 trains )
Slide 29: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - Q3 of FY2025（vs. Q3 of FY2024） FY2025 Forecast（vs. forecast in November） Orders Down due to a reactionary decline, as Orders Revised up due to higher orders, Received the same period last year included a Received including domestic waste-
Slide 30: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q4 FCST Orders Received 428.5 314.8 - 113.6 542.0 480.0 540.0 - 2.0 + 60.0 225.2 Energy, Plant & Marine
Slide 31: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - Revenue (billion yen) Energy, Plant & Marine Machinery 137.1 Ship & Offshore Structure 118.8 111.9 102.1 100.9 95.5 96.6 90.6 86.5 77.8 77.0 80.1 79.8 70.3 70.8 70.9 70.7 60.6 63.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 32: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - Market Overview Specific Efforts Energy, Plant & Marine Machinery Contribution to Sustainable Social Domestic Overseas Infrastructure Order received for the Kawasaki Jetfoil High-Speed – Growth in demand for power – Increasing inquiries
Slide 33: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - Q3 of FY2025（vs. Q3 of FY2024） FY2025 Forecast（vs. forecast in November） Orders Up due to higher orders for hydraulic Orders Forecast remains unchanged Received components orders in the Chinese Received +¥14.5 bil. construction machinery market ±¥
Slide 34: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q4 FCST Orders Received 185.8 200.4 + 14.5 249.2 270.0 270.0 + 20.8 - 69.6 Hydraulic 108.6 127.5 + 18.8 147.5 17
Slide 35: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - Revenue (billion yen) Hydraulic Components & Systems Robotics 73.1 73.5 72.6 69.2 65.0 65.5 60.6 61.2 61.5 59.4 60.0 57.6 55.6 56.8 56.9 52.6 53.7 52.6 49.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2021 FY2022 FY2023 FY2024 FY202
Slide 36: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - Market Overview Specific Efforts Hydraulic components Measures to Develop the Hydraulic Business China Others Development of new products and Strengthening the after market for construction machinery sales business – Recovery is gaining – The
Slide 37: Powersports & Engine
Details by Segment 3 - Powersports & Engine - Q3 of FY2025（vs. Q3 of FY2024） FY2025 Forecast（vs. forecast in November） Revenue Up due to higher sales of four-wheelers Revenue Forecast remains unchanged for the North America and motorcycles +¥34.9 bil. for developed markets, despite the ±¥0 bil. impa
Slide 38: Powersports & Engine
Details by Segment 3 - Powersports & Engine - (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q4 FCST Revenue 417.2 452.2 + 34.9 609.3 660.0 660.0 + 50.7 - 207.8 Motorcycles for developed markets 158.6 165.0 + 6.3
Slide 39: Powersports & Engine
Details by Segment 3 - Powersports & Engine - Revenue(billion yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2021 FY2022 FY2023 FY2024 FY2025 Business Profit(billion yen) 17.3% 13.1% 10.9% 10.7% 10.2% 8.0% 10.0% 10.0% 9.9% 8.5% 8.4% 7.2% 6.5% 3.1% 5.0% 4.5% 5.3% 0.9% - 2.4% © Kawasa
Slide 40: Powersports & Engine
Details by Segment 3 - Powersports & Engine - Market Overview Specific Efforts Supplying products in alignment US (Motorcycles) with market trends – Despite a softening retail market, our market – Continuous introduction of new models share remains strong – Realize stable supply of products by U
Slide 41: Shareholder Returns and Other Information
4 Shareholder Returns and Other Information © Kawasaki Heavy Industries, Ltd. All Rights Reserved 41
Slide 42: Shareholder Returns
4 Shareholder Returns Update in Shareholder Returns Policy and Upward Revision to Full-Year Dividend Forecast ー Shift from Dividend Payout Ratio to DOE Policy ー After (New Policy) Before (Former Policy) Determined after considering future earnings To enhance long-term shareholder value and outlook,
Slide 43: Notice Regarding Stock Split
4 Notice Regarding Stock Split Stock Split ー Achieving an Appropriate Investment Unitー Purpose To lower the share price per unit, making the stock more accessible and expanding our investor base Overview Method of the ： Each share of common stock will be split into five shares stock split Record dat
Slide 44: Project Topics: World's Largest Liquefied Hydrogen Carrier
4 Project Topics Contract Signed to Build World’s Largest 40,000 m3 Subsidized by NEDO Liquefied Hydrogen Carrier ©HySTRA ー Constructing a Commercial-Scale Liquefied Hydrogen Supply Chain ー Suiso Frontier The World’s First Liquefied Hydrogen January 2026: Kawasaki announced the signing of a shipbu
Slide 45: Project Topics: Business Stability in North America and New Opportunities in Japan
4 Project Topics Business Stability in North America and Capturing New Opportunities in Japan ー Driving Competitiveness through Standardization and Differentiation ー Kawasaki Secures New York City Transit Order for the R268 Subway Cars Fleet (378 Units) Dec.2025 Amount Approx. $1.5 bil.(¥225 bil.) T
Slide 46: Project Topics: AI-Powered Robotics
4 Project Topics AI-Powered Robotics: Shaping the Next Frontier Leading the Rise of Next-Generation Robots ー Physical AI now enables robots to autonomously assess situations and optimize their actions Kawasaki works with many companies that have advanced Exhibited at the International Robot tech
Slide 47: Appendix - Factors Affecting Changes in Business Profit
Appendix 2 - Factors Affecting Changes in Business Profit(Earnings Forecasts for FY2025) - Note: The graph shows the variance from the forecast announced in November Effects of Cost increase FX rates Due to US Change in (gap between assumed revenue Change in revenue mix, Tariff Policy※2 and actual r
Slide 48: Appendix - CAPEX, Depreciation, R&D Expenses, Employees
Appendix 4 - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees - (billion yen, persons) FY2024 FY2025 FY2024 FY2025 Q3 Actual Q3 Actual Change Actual FCST Chg. Vs. FY24 CAPEX 93.6 101.7 + 8.1 141.1 135.0 - 6.1 Depreciation and amortization 65.7 77.0 + 11.3 93.4 103.0 + 9.6 R &
Slide 49: Appendix - Orders Received by Quarter
Appendix 4 - Others - Orders Received by Quarter（billion yen) FY2023 FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 3Q Aerospace Systems 118.7 74.4 139.2 360.0 88.2 121.7 470.1 202.7 98.9 186.1 301.6 Aerospace 104.4 98.0 108.0 246.3 54.3 58.4 435.6 151.1 65.1 130.6 256.4 Aero Engine 14.2 -23.6 31.2 1
Slide 50: Appendix - Orders and Revenue for the Ministry of Defense
Appendix 4 - Others - Orders Received and Revenue for the Ministry of Defense（billion yen） FY2024 FY2025 FY2024 FY2025 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Orders Received 616.4 443.1 - 173.3 774.7 480.5 500.0 - 274.7 + 19.5 Aircraft and othe
Slide 51: Appendix - Order Backlog
Appendix 4 - Others - Order Backlog （billion yen) FY24 Q3 FY25 Q3 Actual Actual Change Aerospace Systems 1,329.7 1,514.7 + 185.0 Rolling Stock 397.0 636.3 + 239.3 Energy Solution & Marine Engineering 847.9 840.7 - 7.2 Precision Machinery & Robot 100.6 109.2 + 8.6 Powersports & Engine - 1.5 + 1.5 O
Slide 52: Appendix - Revenue by Region
Appendix 4 - Others - Revenue by Region （billion yen) FY2024 Q3 (billion yen) FY24 Q3 FY25 Q3 Japan USA Europe Asia Other Total Actual Actual Change Aerospace Systems 193.1 98.1 58.5 0.0 4.6 354.4 Japan 561.6 605.5 + 43.9 Rolling Stock 44.2 94.2 - 4.2 - 142.7 USA 447.0 514.3 + 67.3 Energy Solution
Slide 53: Appendix - Amount of Foreign Currency Impacting Profit and Loss
Appendix 4 - Others - Amount of Foreign Currency Impacting Profit Weighted-average Exchange Rates (EUR/JPY) and Loss by Currency※1 FY2023 actual 157.09 FY2024 FY2025 FY2024 actual 163.07 Q3Actual Q3Actual Q4 FCST Aerospace Systems ※2 0.50 ※2 0.63 0.17 FY2025 Q3 actual 172.11 Rolling Stock 0.25 0
Slide 54: © Kawasaki Heavy Industries, Ltd. All Rights Reserved
© Kawasaki Heavy Industries, Ltd. All Rights Reserved
Kawasaki Heavy Industrial — Q3 2025 Earnings Presentation on 6ix