Kawasaki Heavy Industrial Ltd (KWHIF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for your participation today. My name is Hashimoto, President. Firstly, please allow me to offer my sincere apologies once again for the concern caused to our stakeholders as a result of the misconduct incidents uncovered in the previous fiscal year during the process of addressing past underlying issues. In December last year, we received the final report of the Special Investigative Committee. The impact of these incidents on our results was reflected in the results for fiscal year 2025, and we believe that some of the financial impact of these incidents on results from the current fiscal year onwards have been limited. Our company will remain fully focused on regaining the trust of our stakeholders. Regarding our full year results for fiscal year 2025, revenue was 2.3112 trillion yen, business profit was 145.1 billion yen, and profit attributable to owners of parent was 108.1 billion yen. In all cases, we recorded record results for a second consecutive fiscal year. Turning to the full year forecast for fiscal year 2026, we have set the exchange rate at 150 yen to the dollar. For business profit, which attracts significant attention, we anticipate recording 170.0 billion yen. This would exceed our previous record for business profit by a large margin. We expect revenue to increase compared with fiscal year 2025 and we anticipate an increase of profit to 110.0 billion yen. Accordingly, we are making steady progress towards our fiscal year 2030 target of a business profit margin exceeding 10% in all business segments. Regarding the external environment, we expect difficulties with procuring materials and production delays as a result of the Middle East situation, and we have incorporated a certain amount of risk in the forecast. Turning to US tariff policy...