Kawasaki Heavy Industries, Ltd.
7012・Prime Market・Transportation Equipment
Governance
As a company with an Audit and Supervisory Committee, it has 7 outside directors (a majority) out of 12 total directors, and has established a Nomination Advisory Committee and a Compensation Advisory Committee. The board features a diverse composition including 4 women and 2 foreign nationals, aiming to strengthen management oversight functions.
Risk Management
The company has established an enterprise risk management (ERM) framework, with risks deliberated and selected by the Board of Directors four times a year. In response to misconduct related to submarine repairs and marine engines, the Special Compliance Promotion Committee is leading recurrence prevention measures centered on three pillars: "building systems that prevent misconduct," "strengthening misconduct detection," and "reforming organizational culture and awareness."
Shareholder Returns
Stable dividend policy based on a mid- to long-term consolidated payout ratio target of 30%. In FY2025, an interim dividend of ¥75 and a year-end dividend of ¥96 (total ¥171) were implemented, resulting in a payout ratio of 26.4%. The FY2027 forecast is an annual dividend of ¥40 (on a post-stock-split basis), with a payout ratio of 30.4%.
Dividend Policy
In addition to future earnings outlook, the Company comprehensively considers financial conditions such as free cash flow and the net debt-to-equity ratio (net D/E ratio), and sets a mid- to long-term consolidated payout ratio target of 30% relative to profit attributable to owners of the parent, with an emphasis on stable dividends. Dividends are paid twice a year, at the interim and year-end (the Articles of Incorporation designate the end of the second quarter and the fiscal year-end as the dividend record dates). FY2025 results: interim dividend of ¥75 per share and year-end dividend of ¥96 per share (total ¥171), total dividends of ¥28,706 million, payout ratio of 26.4%. FY2026 forecast: annual dividend of ¥40 per share (on a basis reflecting the 1-for-5 stock split effective April 1, 2026), payout ratio of 30.4%. Note that a 5-for-1 stock split of common shares was implemented effective April 1, 2026.
ESG
The company has obtained SBTi certification with targets of net zero for Scope 1 and 2 (domestic consolidated subsidiaries) by 2030 and net zero for Scope 3 by 2050, while advancing the construction of a liquefied hydrogen supply chain and demonstration of CO2 separation and capture technology (KCC). On the human capital front, it has set targets of exceeding 50% in the engagement index and exceeding 20% in the ratio of diverse talent appointed to department manager level by FY2030, and is implementing multifaceted ESG initiatives including the formulation of a DE&I policy and promotion of paternity leave uptake among male employees.
Last updated: June 19, 2026