Kawasaki Heavy reports Q1 profit surge; raises FY27 forecast to 115 billion yen

Kawasaki Heavy Industries Ltd. announced on Friday that its first‑quarter profit rose sharply, and it has lifted its profit outlook for fiscal 2027 while keeping its revenue forecast unchanged. The Japanese heavy‑equipment maker, which trades on the Tokyo Stock Exchange under the ticker 7012.T, posted the results for the quarter ending March 31, 2024.

The company’s earnings growth comes amid a rebound in global demand for construction and industrial machinery. After a slow 2023, customers in Asia and Europe are increasing orders for cranes, excavators and offshore platforms. Kawasaki has also benefited from a steady supply of key components, which has helped it avoid the production bottlenecks that hit many manufacturers last year.

In Q1, profit attributable to owners of the parent jumped to 15.66 billion yen from 4.24 billion yen a year earlier. Basic earnings per share climbed to 18.74 yen from 5.07 yen. Business profit rose to 35.75 billion yen, up from 20.51 billion yen. Revenue grew to 543.58 billion yen, a rise from 488.44 billion yen. Looking ahead, Kawasaki keeps its 2027 revenue forecast at 2.56 trillion yen, a 10.8 % year‑over‑year increase. It has lifted its business profit guidance to 180 billion yen, up 24 % from last year’s 170 billion yen. Profit attributable to owners of the parent is now expected to hit 115 billion yen, a 6.3 % rise over the previous forecast of 110 billion yen. Basic earnings per share are projected at 133.12 yen, up from 131.61 yen. The stock fell 3.21 % to JPY 2,776.50 after the announcement.

The upgraded outlook signals confidence in the company’s product mix and market recovery. Investors will watch how Kawasaki’s guidance translates into actual sales as construction spending picks up. The firm’s steady revenue forecast suggests it expects demand to stay robust, while the higher profit targets reflect improved margins and efficient production. The news may bolster market sentiment for other Japanese industrial manufacturers facing similar supply‑chain challenges.