Kawasaki Heavy Industrial Ltd (KWHIF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for your participation. Allow me to present the financial highlights. In our financial results for the first quarter of fiscal year 2025, our company achieved record revenue and a year-on-year increase in business profit. These results met our performance forecast for the current fiscal year on the whole. Turning to the full year forecast for fiscal year 2025, we have kept the forecast unchanged from the previous announcement. Despite including the direct impact of recent US tariffs in the forecast, we adjusted the exchange rate assumption to a weaker yen, explaining our decision to keep the forecast unchanged. This concludes the summary. I will provide more details beginning on page 5. Orders received in the first quarter of fiscal year 2025 amounted to 446.3 billion yen, revenue amounted to 488.4 billion yen, business profit was 20.5 billion yen, quarterly profit before tax was 16.8 billion yen, and quarterly profit attributable to owners of the parent was 4.2 billion yen. Despite the year-on-year increase in business profit, there was a decrease in quarterly profit before tax and net profit. The main reasons for this included a contraction of foreign exchange gains resulting from the appreciation of the yen. I will explain this in more detail on a later slide. As you can see, the weighted average exchange rates were approximately 9.5 yen stronger than in the previous year, and US dollar-based transactions amounted to approximately 0.52 billion dollars. Please see page 6. This chart provides a breakdown of orders received, revenue, and business profit for each segment. As point 1 shows, for rolling stock, earnings increased because of an improvement in profitability as well as a recovery from the temporary decline in earnings due to a revision in the indi...