Kawasaki Heavy Industries reports record Q2 revenue, maintains profit forecast

Kawasaki Heavy Industries (KHI) reported record revenue of 996.2 bn yen for the second quarter of FY2025, up 112.0 bn yen year-over-year. Business profit totaled 35.7 bn yen, despite impacts from yen appreciation and higher tariff costs. The full-year revenue forecast was raised to a record 2,340.0 bn yen, while the business profit forecast remains unchanged at 145.0 bn yen, reflecting H2-weighted performance, particularly in Aerospace Systems.

Key growth drivers included the Energy Solution & Marine Engineering (ES&M) segment, which saw increased revenue and business profit, and the Powersports & Engine (PS&E) segment, which achieved revenue growth despite higher tariffs. Aerospace Systems’ profit decreased due to increased production of commercial aircraft engines and MRO investments. Orders received hit 1,015.4 bn yen, reflecting strong demand in defense-related contracts and commercial aircraft engines.

KHI is actively engaged in developing a liquefied hydrogen supply chain, with construction starting in May 2025 for the Ohgishima LH2 Terminal in Kawasaki City and factory production of large liquefied hydrogen storage tanks launched in October 2025. Furthermore, KHI signed MoUs for hydrogen supply chain development with Japan-Germany and Japan-Australia partners, reinforcing its commitment to a low-carbon and decarbonized society.