Kawasaki Heavy Industries (7012): FY3/26 results first impression: positive

研报英文原文证据摘录

Kawasaki Heavy Industries (7012): FY3/26 results first impression: positive

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Kawasaki Heavy Industries (7012)

FY3/26 results first impression: positive

Maintain Rating: BUY | PO: 3,760 JPY | Price: 3,391 JPY

13 May 2026

Firm finish, and better-than-expected FY3/27 guidance Equity

Our impression of KHI’s FY3/26 results is positive. FY3/26 business profit (BP) of

¥145.1bn was broadly in line with our estimate (¥148.0bn), while guidance came in Kenjin Hotta >>

Research Analyst

stronger than expected at ¥170.0bn (vs. BofAe ¥178.1bn / consensus ¥170.8bn), above BofAS Japan

our expectation of ~¥160bn. Overall, we remain positive given the combination of kenjin.hotta@bofa.com

earnings inflection and attractive valuation, and maintain our Buy rating. Yuri Nishizaki >>

BofAS Japan

We were surprised by the ¥30bn BP guidance for the Powersports & Engine segment. yuri.nishizaki@bofa.com

We had forecast ¥24.6bn with downside risk, while investor expectations were likely

below ¥20bn. The stronger FY3/27 outlook reflects a solid FY3/26 finish (BP ¥22.7bn vs.

our ¥18.4bn / CoE ¥20.5bn), driven by cost control and 4WD model changes, with volume Stock Data

growth (+7% YoY revenue) expected to support margins into FY3/27. While management

sounded confident in meeting this target, we think there is risk that it could be a bit of a Price 3,391 JPY

high bar. Price Objective 3,760 JPY

Date Established 30-Mar-2026

In FY3/27, defense-related revenues are expected to grow c.18% YoY, driving ~40% of Investment Opinion C-1-8

the overall YoY BP increase (ex-eliminations) based on our estimates and supporting 52-Week Range 1,614-3,766 JPY

earnings in Aerospace Systems (AS) and Energy Solutions & Marine Engineering Market Value (mn) 2,847,114 JPY

(ES&ME) segments.