Kawasaki Heavy Industries, Ltd.
7012・Prime Market・Transportation Equipment
Aerospace Systems
KHI's core growth segment covering defense, commercial aviation, and space
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (external customers) | ¥613,691 million | ¥567,838 million | ↑ |
| Business profit | ¥62,484 million | ¥55,826 million | ↑ |
| Business profit margin | 10.2% | 9.8% | ↑ |
| Orders received | ¥810,900 million | ¥882,800 million | ↓ |
Business Details
This segment manufactures and sells aircraft, aircraft engines (including Commercial Aero Engine Shared Production Parts), and Space-related Equipment. Major customers include the Ministry of Defense (Defense Aircraft & Helicopters) and commercial aircraft engine manufacturers. Against a backdrop of fundamental strengthening of defense capabilities and recovery in air passenger demand, the segment achieved higher revenue and profit, positioning it as the segment with the highest profit contribution within the Kawasaki Heavy Industries Group as a whole.
Recent Overview
Higher revenue and profit driven by growth in Ministry of Defense and commercial aircraft orders; orders received declined due to a comparison against a large prior-year order
In FY2026 (ending March 2026), revenue increased by ¥45,853 million year on year to ¥613,691 million, and business profit increased by ¥6,658 million year on year to ¥62,484 million, driven by an increase in shared production parts for the Ministry of Defense and commercial aircraft. Meanwhile, although orders for commercial aircraft and commercial aero engine shared production parts increased, orders received decreased by ¥71,900 million year on year to ¥810,900 million compared to the prior year, which had included a large order from the Ministry of Defense. For FY2027 (ending March 2027), revenue is projected at ¥720,000 million and business profit at ¥72,000 million.
Key Products
Growth Drivers
- Continued expansion of defense-related orders and sales based on the Ministry of Defense's fundamental strengthening of defense capabilities policy
- Increased demand for commercial aero engine shared production parts driven by the recovery in air passenger demand
- Revenue visibility from a high level of order backlog (orders forecast of ¥600,000 million for FY2027, ending March 2027)
- Expansion of production capacity through enhanced production systems and supply chain restructuring
- Acquisition of new order opportunities through engagement with priority areas of defense capability strengthening
Risks
- Risk of recurrence of operational issues with commercial aircraft engines (a loss was recorded in the prior fiscal year)
- Risk of delays in establishing supply chains and increased production capacity to meet robust demand
- Risk of fluctuation in orders received due to changes in defense budget policy or procurement plans (orders received decreased in the fiscal year under review due to the comparison against a large order in the prior year)
- Impact on earnings from foreign exchange fluctuations (yen appreciation)
- Compliance risks related to the submarine repair and marine engine matters, and the challenge of restoring trust across the Group as a whole
Last updated: June 19, 2026