Kawasaki Heavy Industries (TYO:7012) posted better-than-expected earnings for the 2026 fiscal year as it navigated market volatility triggered by US trade tariffs.
The Tokyo-headquartered company manufactures motorcycles, engines, heavy equipment, aerospace and defense equipment, rolling stock and ships.
Net profit attributable to owners for the fiscal year ended March 31 rose 23% to 108.2 billion Japanese yen from 88 billion yen a year earlier, according to a Tokyo bourse filing on Tuesday.
Earnings per share increased year on year to 129.41 yen from 105.08 yen.
Kawasaki's profit topped its forecast of 90 billion yen.
Revenue climbed 8.5% to 2.311 trillion yen, missing its 2.34 trillion yen forecast.
In December 2025, Kawasaki planned to raise the prices of its motorcycles by up to 17% to offset US tariffs on non-U.S. engines and components, Bloomberg TV reported at the time, citing CEO Yoshinori Kanehana.
Kawasaki said its precision machinery and robot segment recovered from the impact of US tariffs, with the unit's profit rising 7.3% year on year, offsetting the decline in the powersports and engine segment's business profit.
Meanwhile, profit from the company's aerospace systems and energy solution segment rose 6.6%, while that of marine engineering edged up 11%.
Reflecting its annual performance, Kawasaki raised its final dividend to 96 yen per share, up from the previously projected 91 yen. Shareholders of record as of March 31 can expect payment by June 26.
For the 2026-2027 fiscal year, the company expects attributable profit to rise 1.7% year on year to 110 billion yen, or 131.61 yen per share. Revenue is forecast to climb 11% to 2.560 trillion yen.
