# Kawasaki Heavy Industries,Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 訂正有価証券報告書－第203期(2025/04/01－2026/03/31) (S100YU10)
> Page: https://vizora.meequs.com/en/company/kawasaki-heavy-industries
> Retrieved: 2026-09-30T21:13:47.121Z

## Company

Kawasaki Heavy Industries, founded in 1896, is a company in Aerospace listed on TSE Prime. It has 41,652 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Kawasaki Heavy Industries, Ltd. |
| Ticker | 7012 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/7012.T) |
| Listing | TSE Prime |
| Head office | 神戸市中央区東川崎町3丁目1番1号 |
| Representative (per filing) | 代表取締役社長執行役員 橋本 康彦 |
| Founded | Oct 1896 |
| Share capital | ¥104.5B |
| Employees (consolidated) | 41,652 |
| Average salary (parent only) | ¥9.1M |
| Fiscal year end | March |
| Website | www.khi.co.jp (https://www.khi.co.jp/) |
| Corporate number | 1140001005719 |
| EDINET | E02127 |
| Industries (Vizora) | Aerospace, Defense, Electrical Equipment, Shipbuilding, Robots & Factory Automation, Industrial Machinery, Motorcycles |

> Profile source: annual securities report (S100YU10, filed 2026-08-07). As of filing

## Key points (generated from figures)

- About 31% of Kawasaki Heavy Industries's sales come from Powersports and Engine, with Aerospace Systems and Energy Solution and Marine making up much of the rest.
- Out of every ¥100 of sales, about ¥6 is left as operating profit.
- Revenue changed +8.5% from the prior year.

## Company structure

- Segment revenue mix: Powersports and Engine 30.7%、Aerospace Systems 27.6%、Energy Solution and Marine 19.5%、Precision Machinery and Robot 11.6%、Rolling stock 10.6%
- Revenue → net income: ¥2311267000000 → ¥114927000000
- Net income → operating cash flow: ¥114927000000 → ¥140071000000（difference ¥25144000000）
- Main uses of operating cash flow: CapEx ¥117785000000 / dividends ¥25953000000 / buybacks —
- Change in cash: ¥-17290000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥2.31T |  |
| Operating income | — | Margin — |
| Net income | ¥108.2B | Margin 4.7% |
| Free cash flow | ¥22.3B |  |
| Largest business | Powersports and Engine | of segment revenue 30.7% |
| Employees (consolidated) | 41,652 |  |
| EPS | ¥129.41 |  |
| Book value per share | ¥457.86 |  |
| Equity ratio | 26.4% | Derived from disclosed figures |
| Shares outstanding | 167,921,000 |  |
| Treasury shares | 48,700 |  |
| Shareholders | 117,586 |  |
| Average salary (parent only) | ¥9.1M | Filing company only |
| Cash ratio | 3.5% | Cash ÷ revenue 5.0% |
| ROE | 13.7% | Derived from disclosed figures |
| ROA | 3.4% | Derived from disclosed figures |

## Notable figures

- FY2026, parent-company salary changed +33% over five years
- FY2026, cash is 3% of total assets

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥1488486000000 | ¥2311267000000 | +55.3% |
| Employees | 36,691 people | 41,652 people | +13.5% |
| Cash and equivalents | ¥122166000000 | ¥115414000000 | -5.5% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 航空宇宙システム事業 → 事業再編・廃止 | 21.9% |
| エネルギー・環境プラント事業 → 事業再編・廃止 | 13.9% |
| 車両事業 → 事業再編・廃止 | 7.7% |
| エネルギーソリューション＆マリン事業 → エネルギーソリューション＆マリン事業 | 18.5% |
| 精密機械・ロボット事業 → 事業再編・廃止 | 13.9% |
| 船舶海洋事業 → 事業再編・廃止 | 4.6% |
| モーターサイクル＆エンジン事業 → 事業再編・廃止 | 19.5% |
| 新設・再編 → 航空宇宙システム事業 | 27.6% |
| 新設・再編 → 車両事業 | 10.6% |
| 新設・再編 → エネルギーソリューション＆マリン事業 | 1.0% |
| 新設・再編 → 精密機械・ロボット事業 | 11.6% |
| 新設・再編 → パワースポーツ＆エンジン事業 | 30.7% |

Segment revenue source references: 12 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Powersports and Engine | 4 years | +11.1% | ¥682812000000 | — | 2 |
| Aerospace Systems | 4 years | +19.8% | ¥613691000000 | — | 2 |
| Energy Solution and Marine | 5 years | +6.3% | ¥433574000000 | — | 2 |
| Precision Machinery and Robot | 4 years | +0.6% | ¥259146000000 | — | 2 |
| Rolling stock | 4 years | +16.9% | ¥236203000000 | — | 2 |

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 2,311,267 | 100.0% | S100YU10 |
| Cost of revenue | 1,856,349 | 80.3% | S100YU10 |
| Gross profit | 454,917 | 19.7% | S100YU10 |
| SG&A | 328,759 | 14.2% | S100YU10 |
| Pretax income | 145,530 | 6.3% | S100YU10 |
| Income tax | 30,602 | 1.3% | S100YU10 |
| Net income | 114,927 | 5.0% | S100YU10 |
| Net income attributable to owners | 108,157 | 4.7% | S100YU10 |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 80 |
| SG&A | 14 |
| Operating income | 6 |
| (Ref.) Net income | 5 |

### Margin funnel

Gross margin 19.7% → Net margin 4.7%
Derived from reported figures (DERIVED).

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 2,129,321 | 2,311,267 | 181,946 | +8.5% |
| Gross profit | 431,537 | 454,917 | 23,380 | +5.4% |
| Net income attributable to owners | 88,001 | 108,157 | 20,156 | +22.9% |
| Operating cash flow | 148,943 | 140,071 | -8,872 | -6.0% |
| Free cash flow | 35,299 | 22,286 | -13,013 | -36.9% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 1,641,335 | 62,063 | 3.8% | 18,662 | -15,461 | -87,408 | S100LI2X |
| FY ending Mar 2021 | 1,488,486 | -5,305 | -0.4% | -19,332 | 34,601 | -17,091 | S100O7VN |
| FY ending Mar 2022 | 1,500,879 | 45,805 | 3.1% | 12,638 | 156,890 | 89,247 | S100R4RQ |
| FY ending Mar 2023 | 1,725,609 | — | — | 53,029 | 23,617 | -46,327 | S100TOSU |
| FY ending Mar 2024 | 1,849,287 | — | — | 25,377 | 31,662 | -64,881 | S100VWDC |
| FY ending Mar 2025 | 2,129,321 | — | — | 88,001 | 148,943 | 35,299 | S100YU10 |
| FY ending Mar 2026 | 2,311,267 | — | — | 108,157 | 140,071 | 22,286 | S100YU10 |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥55.5M |
| Net income per employee (consolidated) | ¥2.6M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 36,587 | 38,254 | 39,689 | 40,640 | 41,652 |
| Average salary (parent company) | ¥6.8M | ¥7.4M | ¥8.1M | ¥7.9M | ¥9.1M |
| Average age (parent company) | 40.5 years | 40.9 years | 41.3 years | 41.5 years | 41.7 years |
| Average tenure (parent company) | 14.9 years | 15.2 years | 15.3 years | 15.4 years | 15.3 years |

Year over year: Employees (consolidated) +2.5% · Revenue (consolidated) +8.5%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Aerospace Systems | 613,691 | 27.6% | — | — |
| Rolling stock | 236,203 | 10.6% | — | — |
| Energy Solution and Marine | 433,574 | 19.5% | — | — |
| Precision Machinery and Robot | 259,146 | 11.6% | — | — |
| Powersports and Engine | 682,812 | 30.7% | — | — |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share |
| --- | ---: |
| Aerospace Systems | 27.6% |
| Rolling stock | 10.6% |
| Energy Solution and Marine | 19.5% |
| Precision Machinery and Robot | 11.6% |
| Powersports and Engine | 30.7% |

Segment → industry: Aerospace Systems → Aerospace / Aerospace Systems → Defense / Rolling stock → Electrical Equipment / Energy Solution and Marine → Electrical Equipment / Energy Solution and Marine → Shipbuilding / Precision Machinery and Robot → Robots & Factory Automation / Precision Machinery and Robot → Industrial Machinery / Powersports and Engine → Motorcycles

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 140,071 | 6.1% | S100YU10 |
| Capital expenditure | 117,785 | 5.1% | S100YU10 |
| Free cash flow | 22,286 | 1.0% | 算出 |
| Investing cash flow | -128,049 | -5.5% | S100YU10 |
| Financing cash flow | -33,232 | -1.4% | S100YU10 |
| Dividends paid | 25,953 | 1.1% | S100YU10 |
| Change in cash | -17,290 | -0.7% | S100YU10 |
| Cash and equivalents | 115,414 | 5.0% | S100YU10 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 108,511 | 138,420 | 84,153 | 132,776 | 115,414 | S100TOSU, S100VWDC, S100YU10 |
| Total assets | 2,174,630 | 2,457,725 | 2,680,176 | 3,016,951 | 3,324,623 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |
| Net assets | 524,891 | 596,872 | 654,549 | 725,064 | 948,494 | S100TOSU, S100VWDC, S100YU10 |
| Share capital | 104,484 | 104,484 | 104,484 | 104,484 | 104,484 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |
| Property, plant and equipment | 444,375 | 451,010 | 496,331 | 515,743 | 542,937 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |
| Intangible assets excluding goodwill | 23,413 | — | — | — | — | S100O7VN |
| Investment securities | 14,539 | — | — | — | — | S100O7VN |
| Current assets | 1,320,204 | 1,570,350 | 1,726,925 | 2,023,901 | 2,256,039 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |
| Current liabilities | 987,328 | — | — | — | — | S100O7VN |
| Trade payables | 239,976 | — | — | — | — | S100O7VN |
| Short-term borrowings | 96,108 | — | — | — | — | S100O7VN |
| Long-term borrowings | 194,297 | — | — | — | — | S100O7VN |
| Bonds | 180,000 | — | — | — | — | S100O7VN |
| Interest-bearing debt | 470,405 | — | — | — | — | 算出 |
| Total liabilities | 1,649,738 | 1,860,852 | 2,025,626 | 2,291,887 | 2,376,129 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |
| Non-controlling interests | 19,342 | — | — | — | — | S100O7VN |
| Equity attributable to owners of parent | 505,484 | 576,201 | 634,090 | 702,915 | 878,121 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |
| Retained earnings | 320,671 | 380,255 | 405,156 | 483,530 | 580,816 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |
| Treasury stock | -1,129 | -1,107 | -1,060 | -4,093 | -3,912 | S100R4RQ, S100TOSU, S100VWDC, S100YU10 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 4% | S100YU10 |
| Property, plant and equipment | 16% | S100YU10 |
| Other assets | 80% | S100YU10 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 71% | S100YU10 |
| Equity | 29% | S100YU10 |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 2,174,630 | 2,457,725 | 2,680,176 | 3,016,951 | 3,324,623 |
| Equity | 524,891 | 596,872 | 654,549 | 725,064 | 948,494 |
| Interest-bearing debt | 470,405 | — | — | — | — |
| Cash | 108,511 | 138,420 | 84,153 | 132,776 | 115,414 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 23.5% | S100YU10 |
| Fixed assets ÷ total assets | 16.3% | S100YU10 |
| Goodwill ÷ parent equity | — | —, S100YU10 |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 3.5% |
| Cash ÷ revenue | 5.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | — |
| Cash vs. profit gap | 31,914 JPY mn (of net income 29.5%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 24.0% |
| Shareholder payments — dividends / FCF | 116.5% |
| CapEx intensity (capex ÷ revenue) | 5.1% |
| Investing CF relative to operating CF | 91.4% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 0.8% | 0.69× | 0.6% | 4.30× | 2.5% | S100R4RQ |
| 2023 | 3.1% | 0.75× | 2.3% | 4.28× | 9.8% | S100TOSU |
| 2024 | 1.4% | 0.72× | 1.0% | 4.25× | 4.2% | S100VWDC |
| 2025 | 4.1% | 0.75× | 3.1% | 4.26× | 13.2% | S100YU10 |
| 2026 | 4.7% | 0.73× | 3.4% | 4.01× | 13.7% | S100YU10 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 13.6% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 8.0% | 2026-03-31 |
| 日本生命保険相互会社 | Major shareholder | 3.4% | 2026-03-31 |
| 川崎重工業従業員持株会 | Major shareholder | 2.7% | 2026-03-31 |
| 川崎重工共栄会 | Major shareholder | 2.1% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 (常任代理人 株式会社みずほ銀行決済営業部) | Major shareholder | 2.1% | 2026-03-31 |
| JP MORGAN CHASE BANK 385781 (常任代理人 株式会社みずほ銀行決済営業部) | Major shareholder | 1.3% | 2026-03-31 |
| 株式会社みずほ銀行 | Major shareholder | 1.3% | 2026-03-31 |
| HSBC HONG KONG-TREASURY SERVICES A/C ASIAN EQUITIES DERIVATIVES (常任代理人 香港上海銀行東京支店 セキュリティーズ・サービシズ・オペレーションズ) | Major shareholder | 1.2% | 2026-03-31 |
| NORTHERN TRUST CO.(AVFC) RE FIDELITY FUNDS (常任代理人 香港上海銀行東京支店 セキュリティーズ・サービシズ・オペレーションズ) | Major shareholder | 1.2% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥2.31T, up +8.5% from ¥2.13T.
- Net income attributable to owners grew +22.9%, from ¥88B to ¥108.2B.
- Cash generation weakened, though: operating cash flow slipped -6.0% to ¥140.1B and free cash flow dropped -36.9% to ¥22.3B.

### Drivers

- Sales rose across the businesses, led by Powersports and Engine.
- Higher profits in Energy Solution and Marine and in Precision Machinery and Robot, plus better foreign exchange results, lifted net income. Powersports and Engine sold more but earned less, hit by higher tariff costs, tougher competition in the US and higher fixed costs from expanding production.
- Operating cash flow fell mainly because trade receivables and advance payments to suppliers increased.

### Risks

- Tensions in the Middle East, China's export controls on Japan and US tariffs could disrupt supplies of parts and materials or raise costs.
- The company is still working to prevent a repeat of misconduct found in its submarine repair and marine engine businesses; further violations could lead to damages claims and loss of trust.
- Large projects carry the risk of losses from pricing estimates, contract terms, technical specs or execution problems.

Cited: Amended Annual Securities Report (203rd term) (Management's Analysis of Financial Position, Operating Results and Cash Flows); Amended Annual Securities Report (203rd term) (Business Risks)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 訂正有価証券報告書－第203期(2025/04/01－2026/03/31) | S100YU10 | 2026-08-07 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YU10,, |
| 有価証券報告書－第202期(2024/04/01－2025/03/31) | S100VWDC | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VWDC,, |
| 有価証券報告書－第201期(2023/04/01－2024/03/31) | S100TOSU | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TOSU,, |
| 有価証券報告書－第200期(2022/04/01－2023/03/31) | S100R4RQ | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R4RQ,, |
| 有価証券報告書－第199期(令和3年4月1日－令和4年3月31日) | S100O7VN | 2022-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100O7VN,, |
| 有価証券報告書－第198期(令和2年4月1日－令和3年3月31日) | S100LI2X | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LI2X,, |

## Key alliances (from the filing's material contracts)

| Partner | Type | Description | Source |
| --- | ---: | ---: | ---: |
| 伊藤忠 | Capital alliance | 子会社カワサキモータース㈱と伊藤忠商事の資本業務提携 | S100YU10 |
| Lockheed Martin Corporation | Co-development | P-3C対潜哨戒機の製造権・販売権の許諾を受ける技術援助契約 | S100YU10 |
| The Boeing Company | Co-development | CH-47ヘリコプタの製造権・販売権の許諾を受ける技術援助契約 | S100YU10 |
| Honeywell International Inc. | Co-development | T55ターボシャフトエンジンの組立・修理等の技術支援を受ける | S100YU10 |
| Everllence SE | Co-development | 2サイクル陸舶用ディーゼルエンジンの製造権・販売権の許諾 | S100YU10 |
| Leonardo UK Ltd. | Co-development | EH-101ヘリコプタの製造権・販売権の許諾を受ける技術援助契約 | S100YU10 |
| Rolls-Royce Power Engineering Ltd. | Co-development | 舶用ガスタービンモジュールの製造権・販売権の許諾 | S100YU10 |
| Safran Helicopter Engines | Co-development | RTM322エンジンの修理・オーバーホール等の技術支援を受ける | S100YU10 |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).