Kawasaki Heavy Industries reported second-quarter sales growth of 7% year on year to JPY 541 billion, with a 7% business profit margin. For fiscal 2026 (ending March 2027), margin guidance was raised by 20 basis points to 7.2%, while sales guidance was unchanged.
Aerospace systems could benefit from Japan’s defense buildup, pricing reform, and long qualification cycles, supporting better revenue visibility and margins.
KHI has not shown a durable record of earning above WACC, and too much capital remains allocated to no-moat or highly competitive businesses.
Metric | 7012 | 7011 | ALO |
|---|---|---|---|
Price/Earnings (Normalized) | 12.60 | 22.96 | 15.34 |
Price/Book Value | 1.58 | 3.05 | 0.48 |
Price/Sales | 0.64 | 2.06 | 0.25 |
Price/Cash Flow | 7.59 | 16.84 | 4.14 |
Metric | 7012 | 7011 | ALO |
|---|---|---|---|
Quick Ratio | 0.62 | 0.88 | 0.64 |
Current Ratio | 1.26 | 1.27 | 0.94 |
Interest Coverage | 5.98 | 31.42 | 3.91 |
Metric | 7012 | 7011 | ALO |
|---|---|---|---|
Return on Assets (Normalized) | 3.79% | 4.11% | 1.61% |
Return on Equity (Normalized) | 14.23% | 11.00% | 5.72% |
Return on Invested Capital (Normalized) | 7.33% | 8.02% | 4.32% |
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