Kawasaki Heavy Industries Ltd. (JP:7012)
:7012
Want to see JP:7012 full AI Analyst Report?
Top Page
Kawasaki Heavy Industries
(7012)
Select Model
Select Model
Rating:66Neutral
Price Target:
¥3,061.00
▼(-0.29% Downside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by improving fundamentals (revenue growth and profitability recovery) but held back by leverage and uneven free-cash-flow consistency. Technicals are supportive with the stock above major moving averages, and valuation looks favorable on a low P/E, partially offset by a modest dividend yield.
Positive Factors
Sustained Revenue Growth
Multi-year top-line expansion from ~¥1.50T to ~¥2.31T demonstrates durable demand across Kawasaki's end markets. Sustained revenue growth supports scale advantages, backlog conversion, and investment capacity, improving resilience over a 2–6 month horizon.
Negative Factors
Elevated Leverage
Sustained high gross debt and historically elevated debt-to-equity limit financial flexibility and raise refinancing and interest-rate sensitivity. Leverage constrains strategic optionality, increases fixed costs, and can magnify stress if cyclical revenues weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Multi-year top-line expansion from ~¥1.50T to ~¥2.31T demonstrates durable demand across Kawasaki's end markets. Sustained revenue growth supports scale advantages, backlog conversion, and investment capacity, improving resilience over a 2–6 month horizon.
Read all positive factors
Kawasaki Heavy Industries (7012) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.38T
Dividend Yield1.4%
Average Volume (3M)5.36M
Price to Earnings (P/E)21.9
Beta (1Y)2.26
Revenue Growth8.54%
EPS Growth23.14%
CountryJP
Employees39,689
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)129.40
Shares Outstanding839,609,000
10 Day Avg. Volume5,883,960
30 Day Avg. Volume5,358,010
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)2.76
Price to Sales (P/S)1.05
P/FCF Ratio54.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,818.57Price Target Upside24.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)135.04
Revenue Forecast (FY)¥2.54T
Kawasaki Heavy Industries Business Overview & Revenue Model
Company Description
Kawasaki Heavy Industries, Ltd., established in Tokyo, Japan, in 1878, is a global industrial conglomerate with operations spanning numerous key sectors. The company's extensive activities include developing aerospace systems, providing energy sol...
How the Company Makes Money
Kawasaki Heavy Industries makes money primarily by manufacturing and selling large-scale industrial products and transportation equipment, and by providing after-sales services over the operating life of those assets. Key revenue streams include: ...
Kawasaki Heavy Industries Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as record revenue and advancements in hydrogen and robotics. However, challenges in profitability and cash flow, as well as the impact of U.S. tariffs, balanced the positive aspects.Positive Updates
Record Revenue and Year-on-Year Increase in Business Profit
The company achieved record revenue and a year-on-year increase in business profit for the first quarter of fiscal year 2025, meeting performance forecasts.
Negative Updates
Decrease in Quarterly Profit Before Tax
Despite a year-on-year increase in business profit, there was a decrease in quarterly profit before tax due to foreign exchange gains contraction and other factors.
Read all updates
Q1-2025 Updates
Positive
Negative
Record Revenue and Year-on-Year Increase in Business Profit
The company achieved record revenue and a year-on-year increase in business profit for the first quarter of fiscal year 2025, meeting performance forecasts.
Read all positive updates
Company Guidance
In the first quarter of fiscal year 2025, the company reported record revenue of JPY 488.4 billion and a business profit of JPY 20.5 billion. However, quarterly profit before tax decreased to JPY 16.8 billion, primarily due to a JPY 3.2 billion negative impact from foreign exchange rates as the yen appreciated. Orders received totaled JPY 446.3 billion. Despite meeting the full year performance forecast, the company maintained its full year forecast unchanged, adjusting for U.S. tariff impacts and a revised exchange rate assumption of JPY 145 to the dollar and JPY 165 to the euro. The net debt-to-equity ratio was 78.7%, and a loss of JPY 45.8 billion was recorded in free cash flows. In segment analyses, Rolling Stock saw a business profit increase of JPY 5.1 billion due to improved profitability, while Aerospace Systems revised its business profit forecast upward by JPY 8.0 billion. The Energy Solution and Marine Engineering segment also raised its profit forecast by JPY 7.0 billion. Conversely, the Powersports and Engine segment faced downward revisions in both revenue and profit forecasts due to U.S. tariff costs and weakening demand. The company is also actively pursuing next-generation ventures, such as a commercial-scale liquefied hydrogen base and advancements in robotic-assisted surgery systems.Kawasaki Heavy Industries Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.31T | 2.13T | 1.85T | 1.73T | 1.50T |
| Gross Profit | 454.92B | 431.54B | 312.24B | 333.82B | 256.58B |
| EBITDA | 270.62B | 214.33B | 117.88B | 157.46B | 106.66B |
| Net Income | 108.16B | 88.00B | 25.38B | 53.03B | 21.80B |
Balance Sheet | |||||
| Total Assets | 3.32T | 3.02T | 2.68T | 2.46T | 2.17T |
| Cash, Cash Equivalents and Short-Term Investments | 115.41B | 132.78B | 84.15B | 138.42B | 108.51B |
| Total Debt | 861.19B | 889.51B | 845.23B | 785.26B | 666.84B |
| Total Liabilities | 2.38T | 2.29T | 2.03T | 1.86T | 1.65T |
| Stockholders Equity | 878.12B | 702.91B | 634.09B | 576.20B | 505.48B |
Cash Flow | |||||
| Free Cash Flow | 44.09B | 50.26B | -48.40B | -35.33B | 97.95B |
| Operating Cash Flow | 140.07B | 148.94B | 31.66B | 23.62B | 156.89B |
| Investing Cash Flow | -128.05B | -111.20B | -89.81B | -77.46B | -58.40B |
| Financing Cash Flow | -33.23B | 9.61B | 12.91B | 85.31B | -108.90B |
Kawasaki Heavy Industries Technical Analysis
Neutral
3070.00
Price Trends
3095.62
Negative
3102.30
Negative
2583.74
Positive
Market Momentum
-90.48
Positive
44.26
Neutral
39.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7012, the sentiment is Neutral. The current price of 3070 is above the 20-day moving average (MA) of 2933.20, below the 50-day MA of 3095.62, and above the 200-day MA of 2583.74, indicating a neutral trend. The MACD of -90.48 indicates Positive momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 39.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7012.
Kawasaki Heavy Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥1.24T | 21.24 | 12.13% | 1.21% | 7.54% | 13.65% | |
69 Neutral | ¥2.52T | 31.76 | 16.00% | 1.38% | 12.02% | 9.75% | |
69 Neutral | ¥3.01T | 17.22 | 10.09% | 0.97% | 5.35% | 26.51% | |
66 Neutral | ¥2.38T | 21.90 | 14.59% | 1.40% | 8.54% | 23.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥617.42B | 19.58 | 4.83% | 2.95% | 2.18% | 5504.89% | |
57 Neutral | ¥2.62T | 16.00 | 23.30% | 0.71% | 1.02% | 42.74% |
* Industrials Sector Average
JP:7012
Kawasaki Heavy Industries
2,834.00
729.14
34.64%
JP:6361
Ebara
5,506.00
3,319.04
151.76%
JP:7013
IHI
2,430.00
180.51
8.02%
JP:6594
Nidec
2,627.00
-260.50
-9.02%
JP:6302
Sumitomo Heavy Industries
5,040.00
2,251.23
80.72%
JP:6841
Yokogawa Electric
4,848.00
1,199.93
32.89%
Kawasaki Heavy Industries Corporate Events
Kawasaki Heavy Industries Overhauls Board to Strengthen Governance
May 12, 2026
Kawasaki Heavy Industries is reorganizing its board to strengthen governance and enhance the supervisory function of its directors. The company, a diversified heavy industry and infrastructure supplier, continues to align its leadership structure ...
Kawasaki Heavy Industries Raises Year-End Dividend, Lifts Annual Payout
May 12, 2026
Kawasaki Heavy Industries’ board has approved a higher year-end dividend from retained earnings for the fiscal year ended March 31, 2026, subject to shareholder approval. The company will raise the year-end dividend to ¥96 per share, li...
Kawasaki Heavy Sets Record Profit, Targets Higher Earnings Despite Tariff Headwinds
May 12, 2026
Kawasaki Heavy Industries reported business profit of 145.1 billion yen for the fiscal year ended March 31, 2026, a year-on-year increase of 1.9 billion yen and a new record, broadly in line with its earlier forecast. Strong results in aerospace s...
Kawasaki Heavy Industries lifts earnings, boosts equity and splits stock
May 12, 2026
Kawasaki Heavy Industries reported consolidated revenue of about ¥2.31 trillion for the year to March 31, 2026, up 8.5% year on year, with business profit and profit before tax both rising and profit attributable to owners of the parent climb...
Furukawa Takes Control of EarthTechnica From Kawasaki to Drive Crusher and Recycling Growth
Apr 1, 2026
Furukawa Co. has completed the acquisition of a 60% stake in EarthTechnica from Kawasaki Heavy Industries for ¥7.02 billion, with the remaining 40% to be purchased in April 2027, making EarthTechnica a consolidated subsidiary. The move paves ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.