Kawasaki Heavy Industries Ltd. · TSE:7012
Kawasaki Heavy Industries — Kawasaki Heavy Industrial — FY2025 Earnings Presentation
57 slides from Kawasaki Heavy Industries's earnings presentation, May 12, 2026
Slide 1: Financial Results for FY2025
Financial Results for FY2025 For the year ended March 31, 2026 May 12, 2026
Slide 2: Financial Results and Performance Forecast Highlights
0 Financial Results and Performance Forecast Highlights Consolidated Financial Results for FY2025 Business profit totaled 145.1 billion yen, up 1.9 billion yen YoY, in line with the February forecast, marking a new record high Strong performance in Aerospace Systems and ES&M, together with a recover
Slide 3: Table of Contents
0 Table of Contents Consolidated Financial Results 1 for 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 Machinery & Robot 33 S
Slide 4: Consolidated Financial Results for FY2025
1 Consolidated Financial Results for FY2025 © Kawasaki Heavy Industries, Ltd. All Rights Reserved 4
Slide 5: Consolidated Financial Results for FY2025 – Summary
Consolidated Financial Results for FY2025 1 –Summary- Revenue and business profit increased YoY, with orders received, revenue, and business profit each reaching record highs Pre-tax and net profit significantly exceeded the February forecast, mainly due to yen depreciation toward the fiscal year-en
Slide 6: Consolidated Financial Results for FY2025 – Segment
Consolidated Financial Results for FY2025 1 –Segment- ES&M achieved YoY revenue and business profit growth, driven by strong performance across segments including Energy and Ship & Offshore Structure 1 PS&E posted revenue growth, while business profit declined due to higher tariff costs and stronger
Slide 7: Statement of Profit and Loss
Consolidated Financial Results for FY2025 1 –Statement of Profit and Loss- (billion yen) Details FY2024 FY2025 Change % % Revenue 2,129.3 100.0 2,311.2 100.0 + 181.9 ① The SG&A ratio declined due to control Cost of Sales 1,697.7 79.7 1,856.3 80.3 + 158.5 of fixed cost, despite Gross profit 431.5 20.
Slide 8: Statement of Profit and Loss
Consolidated Financial Results for FY2025 1 –Statement of Profit and Loss- (billion yen) Details FY2024 FY2025 Change % % Finance Income and Finance Costs - 35.6 0.4 + 36.0 ② USD/JPY rate 149.53 Q4/E FY24 Net interest Expense (incl. dividend income) - 12.0 - 11.7 + 0.2 159.93 Q4/E FY25 Gain and Loss
Slide 9: Factors Affecting Changes in Business Profit
Consolidated Financial Results for FY2025 1 –Factors Affecting Changes in Business Profit– Increased sales in PS&E contributed to change in revenue In terms of product mix and other factors, profitability improved markedly in ES&M but deteriorated significantly in PS&E FY24 FY25 Business + 1.9 billi
Slide 10: Factors Affecting Changes in Business Profit
Consolidated Financial Results for FY2025 1 –Factors Affecting Changes in Business Profit- (billion yen) FY2024 Details of change FY2025 Business Cost increase Change in Change in Change in Business Profit Effects of Change in product mix share of profit (loss) Profit due to U.S. of investments SG&A
Slide 11: Statement of Financial Position
Consolidated Financial Results for FY2025 1 –Statement of Financial Position- (billion yen) End of End of Details Change Mar 2025 % Mar. 2026 % Cash and Cash Equivalents 132.7 115.4 - 17.3 ① Increased in PS&E and 1 Aerospace Systems etc. Trade Receivables (Incl. contract assets) 888.8 1,036.3 + 147.
Slide 12: Statement of Financial Position
Consolidated Financial Results for FY2025 1 –Statement of Financial Position- (billion yen) End of End of Details Change Mar 2025 % Mar. 2026 % Trade Payables 512.1 549.2 + 37.1 ④ Decreased due to proceeds 4 from factoring agreements Interest-Bearing Debt 692.5 606.1 - 86.3 Contract Liability (Advan
Slide 13: Statement of Cash Flows
Consolidated Financial Results for FY2025 1 –Statement of Cash Flows- (billion yen) Details FY2024 FY2025 Change ① FY2024： Operating cash flow posted Profit Before Tax 107.5 145.5 + 38.0 a substantial inflow, supported by solid profits Depreciation and Amortization 93.4 103.8 + 10.3 and increases in
Slide 14: Cash Flows
Consolidated Results for FY2025 1 –Cash Flows- Free cash flow in FY2025 remained positive for the second consecutive year Working capital’s contribution to cash flow is gradually materializing, after a significant increase over the past three years (billion yen) Operating cash flow Investing cash fl
Slide 15: Forecasts for FY2026
2 Forecasts for FY2026 (for the year ending March 31, 2027) © Kawasaki Heavy Industries, Ltd. All Rights Reserved 15
Slide 16: Earnings Forecasts for FY2026 - Summary
Earnings Forecasts for FY2026 2 -Summary- Assumed exchange rate of JPY150/USD; business profit expected to reach a record high On track toward achieving the target of a business profit margin exceeding 10% by FY2030 (Billion Yen) Incorporating External Factors FY2025 FY2026 Change Actual Forecast 1
Slide 17: Earnings Forecasts for FY2026 - Factors Affecting Changes in Business Profit
Earnings Forecasts for FY2026 2 -Factors Affecting Changes in Business Profit※1 - A substantial year-on-year profit increase is expected, as the decline in profitability caused by higher costs under U.S. tariff policies is largely offset by revenue growth and price optimization Cost increase due Cha
Slide 18: Earnings Forecasts for FY2026 - Segment
Earnings Forecasts for FY2026 2 -Segment- Business profit will grow driven mainly by revenue increases in Aerospace 1 Systems, ES&M, Precision Machinery & Robot, and PS&E In elimination and corporate, business profit will decline due to an increase 2 in investment expenses for new businesses (see pa
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- FY2025 (vs FY2024) FY2026 forecast（vs FY2025） Orders Down due to the rebound from last year’s Orders Down due to lower MOD orders despite Received large MOD* order despite an increase in Received an increase in Boeing -¥71.9 Bil. Boeing and commercial aircraf
Slide 22: Segment Details – Aerospace Systems
3 Segment Details – Aerospace Systems (Billion Yen) FY2024 FY2025 FY2026 Actual FCST in Feb. Actual Chg. Vs. FY24 Chg. Vs. FCST Forecast Chg. Vs. FY25 Orders Received 882.8 750.0 810.9 - 71.9 + 60.9 600.0 - 210.9 Aerospace 699.5 530.0 570.8 - 128.7 + 40.8 430.0 - 140.8 Aero Engine 183.3 220.0 240.1
Slide 23: Aerospace Systems
Details by Segment 3 -Aerospace Systems- Revenue(billion yen) Aerospace Aero Engines 224.8 213.3 160.6 140.9 146.2 129.1 120.3 110.2 106.3 104.9 101.5 93.5 81.5 80.2 48.9 63.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 FY2024 FY2025 Business Profit(billion yen) 17.9% 16.1% 15.9% 1
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 to – Supply to meet strong demand growth phase, and demand for both aircraft and Reorganization of the chain and production
Slide 25: Rolling Stock
Details by Segment 3 - Rolling Stock - FY2025 (vs. FY2024) FY2026 forecast (vs. FY2025) Orders Orders Down due to lower U.S. orders (378 R268 Up due to the orders for new subway cars received received cars ordered in the previous fiscal year), for the New York City Transit Authority -¥189.1 Bil desp
Slide 26: Rolling Stock
Details by Segment 3 - Rolling Stock - (Billion Yen) FY2024 FY2025 FY2026 Actual FCST in Feb. Actual Chg. Vs. FY24 Chg. Vs. FCST Forecast Chg. Vs. FY25 Orders Received 251.5 300.0 319.1 + 67.5 + 19.1 130.0 - 189.1 Domestic & Asia 52.3 90.0 91.3 + 38.9 + 1.3 126.0 + 34.7 North America 199.2 210.0 227
Slide 27: Rolling Stock
Details by Segment 3 - Rolling Stock - Revenue (billion yen) Domestic & Asia 79.5 North America 64.1 60.1 59.4 55.6 55.2 57.3 51.6 43.5 43.8 43.2 39.5 40.6 32.1 33.7 26.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 FY2024 FY2025 Business Profit 7.3% (billion yen) 6.6% 5.4% 4.4% 3.3
Slide 28: Rolling Stock
Details by Segment 3 - Rolling Stock - Market Overview Specific Efforts Compliance with delivery schedules for overseas projects Domestic Market Project Status Milestone – Continued investment in rolling stock Dhaka ‣ Final vehicle delivered to customer in The final vehicle delivery driven by stro
Slide 29: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - FY2025（vs. FY2024） FY2026 forecast（vs. FY2025） Orders Up due to orders for domestic waste Orders Received Up due to growth in Plant orders and Received incineration plant replacements and large-scale higher MOD orders in Ship & Offshore L
Slide 30: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - (Billion Yen) FY2024 FY2025 FY2026 Actual FCST in Feb. Actual Chg. Vs. FY24 Chg. Vs. FCST Forecast Chg. Vs. FY25 Orders Received 542.0 540.0 552.9 + 10.8 + 12.9 650.0 + 97.1 Energy, Plant & Marine Machinery 354.4 440.0 456.2 + 101.7 + 16.
Slide 31: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - Revenue (billion yen) Energy, Plant & Marine Machinery 137.1 134.2 Ship & Offshore Structure 118.8 111.9 102.1 100.9 96.6 90.6 86.5 77.8 77.0 80.1 79.8 70.9 70.7 63.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 FY2024 FY
Slide 32: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - Market Overview Specific Efforts Energy, Plant & Marine Machinery Products and services that contribute to a low- carbon and decarbonized society Domestic Overseas For Kirishima City(Kagoshima),the Aizu Regional Municipal Association(Fu
Slide 33: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - FY2025（vs. FY2024） FY2026 forecast（vs. FY2025） Orders Orders Up due to higher demand for hydraulic Up due to higher orders for hydraulic Received Received components in the Chinese construction components in the Chinese construction +¥29.2 Bil. ma
Slide 34: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - (Billion Yen) FY2024 FY2025 FY2026 Actual FCST in Feb. Actual Chg. Vs. FY24 Chg. Vs. FCST Forecast Chg. Vs. FY25 Orders Received 249.2 270.0 278.5 + 29.2 + 8.5 330.0 + 51.5 Hydraulic Components & Systems 147.5 170.0 173.1 + 25.6 + 3.1 210.0 + 36.9
Slide 35: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - Revenue (billion yen) Hydraulic Components & Systems 76.5 Robotics 73.5 72.6 69.2 65.0 65.5 61.5 59.4 60.0 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 FY2022 FY2023 FY2024 FY2025 7.4% 6.9% 6.2% 3.5% 5.2% 3.1%
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 Mid- to Long-Term Trends in New Product Development / Review of the Global Production the Construction Machinery Market Development Structur
Slide 37: Powersports & Engine
Details by Segment 3 - Powersports & Engine - FY2025（vs. FY2024） FY2026 forecast（vs. FY2025） Revenue Up due to higher revenue of four- Revenue Up due to higher revenue in the four- wheelers for the North America and wheelers for the North America, +¥73.4 Bil. motorcycles for developed markets +¥47.2
Slide 38: Powersports & Engine
Details by Segment 3 - Powersports & Engine - (Billion Yen) FY2024 FY2025 FY2026 Actual FCST in Feb. Actual Chg. Vs. FY24 Chg. Vs. FCST Forecast Chg. Vs. FY25 Revenue 609.3 660.0 682.8 + 73.4 + 22.8 730.0 + 47.2 Motorcycles for developed contries 245.3 250.0 261.9 + 16.5 + 11.9 275.0 + 13.1 Motorcyc
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 FY2022 FY2023 FY2024 FY2025 17.3% 10.9% 10.0% 10.0% 10.2% 9.9% 8.5% 8.4% 7.2% 8.0% 7.1% 6.5% 3.1% 5.0% 0.9% Business Profit(billion yen) - 2.4% © Kawasaki Heavy Industries, Ltd. All Rig
Slide 40: Powersports & Engine
Details by Segment 3 - Powersports & Engine - Market Overview Specific Efforts U.S. (Motorcycles) Products in alignment with – Despite a softening retail market, our market share market trends remains strong – Launch of attractive models rooted U.S. (Four-wheelers) in the Kawasaki brand – Agile
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 Dividend Policy ー FY2025 Dividend and FY2026 Dividend Outlook ー Dividend per Share*2（yen） To enhance long-term shareholder value while ensuring stable and sustainable shareholder returns, a dividend policy with a target of FY25 FY26 (FCST) Change Dividend on Equity*1 Interim 15
Slide 43: Project Topics: Latest Hydrogen News
4 Project Topics Latest Hydrogen News Growing Expectations for Hydrogen and GTG Technology Demonstration operation of centrifugal Jan. 2026 ー From the perspectives of energy security and the acceleration of carbon hydrogen compressor for hydrogen neutrality ー liquefaction plants launched (Harima Wor
Slide 44: Project Topics: MOU Signed with Bosch Rexroth AG
4 Project Topics Memorandum of Understanding Signed with Bosch Rexroth AG ー Introducing the concept of intelligent machines* construction machinery markets ー In March 2026, Kawasaki signed a memorandum of understanding MOU with Bosch Rexroth to collaborate on Bosch Rexroth AG next-generation solut
Slide 45: ESG Topics: Initiatives to Prevent Recurrence of Misconduct
4 ESG Topics Direction of Reform (Three pillars) Establishing systems Initiatives to Prevent Recurrence of Misconduct to prevent misconduct ーProgress of reforms to restore trust ー The misconduct incidents identified in 2024 (the submarine maintenance incident and the marine engine incident) were i
Slide 46: ESG Topics
4 ESG Topics Click here for a list of evaluations from outside the company (as of April 2026) https://global.kawasaki.com/en/corp/sustainability/esg/evaluation.html Enhancing Employee Engagement Trends in the ratio of Since FY2020, Kawasaki has conducted an employee engagement survey ‘Active Group’
Slide 47: Appendix - Factors Affecting Changes in Business Profit
Appendix 4 - Factors Affecting Changes in Business Profit*(FY2025 Results: February Forecast vs. Actual) - Effects of FX rates Change in (gap between assumed and actual rates) revenue Cost increase Change in revenue mix, due to U.S. SG&A Expenses, tariff Policies*2 Price optimization and Others Chan
Slide 48: CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees
Appendix 4 - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees - (Billion Yen, Persons) FY2024 FY2025 FY2026 Forcast Actual FCST in Feb. Actual Chg. Vs. FY24 Chg. Vs. FCST Forecast Chg. Vs. FY25 CAPEX 141.1 135.0 143.3 + 2.1 + 8.3 170.0 + 26.7 Depreciation and amortization 93.4
Slide 49: Appendix - Other Information: Orders Received by Quarter
Appendix 4 - Other Information - Orders Received by Quarter（billion yen) FY2023 FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 3Q 4Q Aerospace Systems 118.7 74.4 139.2 360.0 88.2 121.7 470.1 202.7 98.9 186.1 301.6 224.1 Aerospace 104.4 98.0 108.0 246.3 54.3 58.4 435.6 151.1 65.1 130.6 256.4 118.6 Aer
Slide 50: Orders Received and Revenue for Defense-related Business
Appendix 4 - Other Information - Orders Received and Revenue for Defense-related Business（billion yen） FY24 FY25 FY26 Actual FCST in Feb. Actual Chg. Vs. FY24 Chg. Vs. FCST Forecast Chg. Vs. FY25 Total 774.7 500.0 534.0 - 240.7 + 34.0 415.0 - 119.0 Aircrafts and others 584.7 362.0 383.2 - 201.5 +
Slide 51: Order Backlog
Appendix 4 - Other Information - Order Backlog （billion yen) FY2024 FY2025 Actual Actual Change Aerospace Systems 1,301.9 1,536.1 + 234.2 Rolling Stock 519.7 613.5 + 93.7 Energy Solution & Marine Engineering 825.3 943.5 + 118.2 Precision Machinery & Robot 91.4 110.8 + 19.3 Powersports & Engine 2.2
Slide 52: Revenue by Region
Appendix 4 - Other Information - Revenue by Region （billion yen) FY2024 (billion yen) FY2024 FY2025 Japan USA Europe Asia Other Total Actual Actual Change Aerospace Systems 331.8 146.0 83.6 0.0 6.3 567.8 Japan 866.5 924.4 + 57.9 Rolling Stock 63.5 152.0 - 6.6 - 222.3 USA 671.1 743.7 + 72.6 Energy
Slide 53: Impact of Foreign Exchange on Business Profit
Appendix 4 - Other Information - Impact of Foreign Exchange on Business Profit Weighted-average Exchange Rates (EUR/JPY) by Currency※1 FY2024 FY2025 FY2026 FY2023 actual 157.09 Actual Actual Forecast FY2024 actual 163.07 Aerospace Systems 0.47 0.68 1.31 FY2025 actual 175.17 Rolling Stock 0.33 0.
Slide 54: © Kawasaki Heavy Industries, Ltd. All Rights Reserved
© Kawasaki Heavy Industries, Ltd. All Rights Reserved
Slide 55: Business Growth Vision
Business Growth Vision May 12, 2026
Slide 56: Business Growth Vision（Profit）
Business Growth Vision（Profit） Achieve an 8% operating margin(Business profit Margin) in 2027 and exceed 10% by 2030 by responding effectively to changes in the external environment. Net sales/Revenue OP/business profit margin ［billion yen］ ［％］ 3,000 15.0 Net sales/Revenue Over 10% OP/business profi
Slide 57: © Kawasaki Heavy Industries, Ltd. All Rights Reserved
© Kawasaki Heavy Industries, Ltd. All Rights Reserved
Kawasaki Heavy Industrial — FY2025 Earnings Presentation on 6ix