Kawasaki Heavy Industries : Report of Earnings and Financial Statements for the Fiscal Year Ended March 31,2026 (Consolidated Ba...

Listed company’s name: Kawasaki Heavy Industries, Ltd.

Listed on: TSE (Prime Market), and NSE (Premier Market)

May 12, 2026

Stock code: 7012

URL: https://global.kawasaki.com

Representative: Yasuhiko Hashimoto, President and Chief Executive Officer

Contact: Hiroyuki Katsuno, Group Manager, Corporate Communication Group Department

Tel: +81 3-3435-2130

Scheduled dates:

Ordinary general meeting of shareholders: Submission of annual securities filing: Commencement of dividend payments:

June 25, 2026

June 19, 2026

June 26, 2026

Preparation of supplementary materials on financial results: Yes

Holding of financial results presentation: Yes (for institutional investors, analysts and the press)

(Amounts in millions of yen rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Fiscal Year ended March 31, 2026 (April 1, 2025 - March 31, 2026)

   1. Operating Results (Percentages indicate year-on-year changes.)

      	Revenue		Business Profit		Profit before tax		Profit
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Year ended March 31, 2026	2,311,267	8.5	145,103	1.4	145,530	35.4	114,927	27.2
      Year ended March 31, 2025	2,129,321	15.1	143,123	209.8	107,518	236.2	90,328	230.7

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      	Millions of yen	%	Millions of yen	%	yen	yen
      Year ended March 31, 2026	108,157	22.9	163,891	79.3	129.41	-
      Year ended March 31, 2025	88,001	246.8	91,399	23.9	105.08	-

      	Return on equity attributable to owners of parent	Ratio of profit before tax to total assets	Ratio of business profit to revenue
      	%	%	%
      Year ended March 31, 2026	13.7	4.6	6.3
      Year ended March 31, 2025	13.2	3.8	6.7

      [Reference] Share of profit of investments accounted for using the equity method Year ended March 31, 2026 Year ended March 31, 2025

      Note: On April 1, 2026, the Company carried out a stock split of common shares at a 5-for-1 ratio. Basic earnings per share has been calculated assuming that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

   2. Financial Condition

      ¥ 24,141 million

      ¥ 23,174 million

      	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets	Equity attributable to owners of parent per share
      	Millions of yen	Millions of yen	Millions of yen	%	yen
      As of March 31, 2026	3,324,623	948,494	878,121	26.4	1,050.57
      As of March 31, 2025	3,016,951	725,064	702,915	23.3	841.12

      Note: On April 1, 2026, the Company carried out a stock split of common shares at a 5-for-1 ratio. Equity attributable to owners of parent per share has been calculated assuming that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

   3. Cash Flow Position

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   Year ended March 31, 2026	140,071	(128,049)	(33,232)	115,414
   Year ended March 31, 2025	148,943	(111,201)	9,605	132,776

2. Dividends

   Record date or term	Dividend per share					Total dividends paid (annual)	Payout ratio (consolidated)	Ratio of dividends to equity attributable to owners of parent (consolidated)
   	1Q	2Q	3Q	Year-end	Total
   	yen	yen	yen	yen	yen	Millions of yen	%	%
   Year ended March 31, 2025	-	70.0	-	80.0	150.0	25,181	28.5	3.8
   Year ended March 31, 2026	-	75.0	-	96.0	171.0	28,706	26.4	3.6
   Year ending March 31, 2027 (forecast)	-	20.0	-	20.0	40.0		30.4

   Notes: 1. In the Company’s articles of incorporation, the dates of record are set as the last day of the fiscal second quarter and the last day of the fiscal year.

   2. On April 1, 2026, the Company carried out a stock split of common shares at a 5-for-1 ratio. The amounts shown for FY2024 and FY2025 are the actual amounts of dividends paid before the stock split.

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2027 (April 1, 2026 - March 31, 2027)

(Percentages indicate year-on-year changes.)

Note: On April 1, 2026, the Company carried out a stock split of common shares at a 5-for-1 ratio.

The basic earnings per share in the Consolidated Financial Results Forecasts for FY2026 takes into account the impact of this stock split.

1. Significant changes in scope of consolidation during the period: None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of shares issued and outstanding (common shares)

   1. Number of shares issued as of period-end (including treasury shares)

      March 31, 2026:

      839,609,000 shares

      March 31, 2025:

      839,609,000 shares

   2. Number of shares held in treasury as of period-end

      March 31, 2026:

      3,760,940 shares

      March 31, 2025:

      3,926,125 shares

   3. Average number of shares during respective periods

March 31, 2026:

835,776,722 shares

March 31, 2025:

837,399,016 shares

Note: On April 1, 2026, the Company carried out a stock split of common shares at a 5-for-1 ratio. Number of shares issued as of period-end, number of shares held in treasury as of period-end, and average number of shares during respective periods have been calculated assuming that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

1. Operating Results (Percentages indicate year-on-year changes.)

   	Net sales		Operating Profit		Ordinary Profit		Profit
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   Year ended March 31, 2026	1,126,155	7.9	60,838	29.8	78,632	32.3	138,832	188.5
   Year ended March 31, 2025	1,043,506	24.5	46,885	-	59,416	-	48,123	-
   	Earnings per share		Earnings per share - diluted
   Year ended March 31, 2026	166.11		-
   Year ended March 31, 2025	57.46		-

   Note: On April 1, 2026, the Company carried out a stock split of common shares at a 5-for-1 ratio. Earnings per share has been calculated assuming that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

2. Financial Condition

[Reference] Shareholders’ equity As of March 31, 2026 As of March 31, 2025

¥ 382,703 million

¥ 270,747 million

Note: On April 1, 2026, the Company carried out a stock split of common shares at a 5-for-1 ratio. Net assets per share has been calculated assuming that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

The variance between financial results of the Company for FY2025 and FY2024 is mainly attributable to an increase in profits resulting from higher revenues in the Energy Solution & Marine Engineering business, as well as the recording of a gain on sale of shares of subsidiaries and associates as extraordinary income due to the partial sale of consolidated subsidiary shares.

• Report of Earnings and Financial Statements are not subject to audit.
• Appropriate Use of Financial Forecasts and Other Important Matters

Forward-Looking Statements

These materials contain various forward-looking statements and other forecasts regarding performance and other matters. Such statements are based on information available at the time of their preparation, and do not mean that the Company promises to achieve these figures.

Actual results may differ from those expressed or implied by forward-looking statements due to a range of factors.

How to Obtain Supplementary Material on Financial Results and Details of the Financial Results

The Company plans to conduct a presentation for institutional investors, analysts and the press on Tuesday, May 12, 2026, and to post the presentation material on financial results to be used for the presentation on TDnet and the Company’s website simultaneously with the announcement of financial results.

1. Qualitative Information about Financial Statements 2

2. Consolidated Financial Statements and Notes 3

   1. Consolidated Statement of Financial Position 3

   2. Consolidated Statement of Profit and Loss and Consolidated Statement of Comprehensive Income 4

   3. Consolidated Statement of Changes in Equity 6

   4. Consolidated Statement of Cash Flow 8

   5. Notes Concerning Consolidated Financial Statements 9

(Note on the going-concern assumption) 9

(Segment information) 9

(Assets held for sale) 10

(Material subsequent events) 11

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1. Qualitative Information about Financial Statements

   The overview of the consolidated operating results, consolidated financial position, and consolidated earnings forecast is "Financial Results for FY2025" made available today (May 12, 2026) on our Company's official website (https://global.kawasaki.com).

   Regarding the misconduct in the Group’s submarine repair business and marine engine business that came to light in 2024, the Group published the investigation results by the respective Special Investigative Committees in December 2024 and in January 2025. In addition, the Group published in December 2025 the results of an additional investigation conducted to determine whether similar cases existed in relation to the two incidents.

   Although the investigations by the Special Investigative Committees were completed with this additional investigation, the Group takes the repeated compliance incidents and the reports from each committee very seriously and will continue, under the leadership of the Special Compliance Promotion Committee chaired by President Yasuhiko Hashimoto, to thoroughly implement highly effective recurrence prevention measures aimed at strengthening the Group-wide compliance and governance systems, and will make every effort to restore trust.

   The estimated financial impact of this matter has been reflected based on estimates as of the end of the consolidated fiscal year; however, should any matters requiring disclosure arise in the future, the Group will promptly disclose such matters.

   Consolidated operating performance in the fiscal year ended March 31, 2026, is summarized by segment below.

   Segment revenue, business profit, and orders received (billions of yen)

   	Years ended March 31						Orders received
   	2025 (A)		2026 (B)		Change (B – A)		Years ended March 31
   	Revenue	Business profit	Revenue	Business profit	Revenue	Business profit	2025 (A)	2026 (B)	Change (B – A)
   Aerospace Systems	567.8	55.8	613.6	62.4	45.8	6.6	882.8	810.9	(71.9)
   Rolling Stock	222.3	8.4	236.2	8.6	13.8	0.2	251.5	319.1	67.5
   Energy Solution & Marine Engineering	398.1	44.2	433.5	55.0	35.4	10.7	542.0	552.9	10.8
   Precision Machinery & Robot	241.5	7.0	259.1	14.3	17.6	7.3	249.2	278.5	29.2
   Powersports & Engine *2	609.3	47.8	682.8	22.7	73.4	(25.1)	611.6	681.7	70.1
   Other	90.1	5.2	85.8	7.0	(4.3)	1.8	93.3	95.9	2.5
   Adjustments *3	-	(25.6)	-	(25.3)	-	0.3	-	-	-
   Total	2,129.3	143.1	2,311.2	145.1	181.9	1.9	2,630.7	2,739.1	108.4

   Notes: 1. Revenue includes only sales to external customers.

2. The Powersports & Engine segment’s orders received were equal to its revenue as production is based mainly on estimated demand. However, during the previous consolidated fiscal year, individual orders were received and have been included in the actual order amount.

3. The adjustments include amounts related to new business investments (head office projects) of negative ¥10.6 billion for the fiscal year ended March 31, 2025, and negative ¥12.2 billion for the fiscal year ended March 31, 2026.

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