Kawasaki Kisen Kaisha (K Line) has announced its unaudited financial results for the first quarter of FY2026, covering the three months ended 30 June 2026.
Operating revenue increased by 17.1% to ¥286.842 billion from ¥244.918 billion in the same period last year.
Operating income declined by 1.3% to ¥19.581 billion from ¥19.842 billion.
Ordinary income rose by 10.9% to ¥24.046 billion, compared with ¥21.684 billion a year earlier.
Profit attributable to owners of the parent declined by 21.9% to ¥23.394 billion from ¥29.947 billion.
Earnings per share stood at ¥37.42, compared with ¥47.40 during the first quarter of the previous financial year.
| Financial indicator | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Operating revenue | ¥286.842 billion | ¥244.918 billion | 17.1% |
| Operating income | ¥19.581 billion | ¥19.842 billion | -1.3% |
| Ordinary income | ¥24.046 billion | ¥21.684 billion | 10.9% |
| Profit attributable to owners of parent | ¥23.394 billion | ¥29.947 billion | -21.9% |
| Earnings per share | ¥37.42 | ¥47.40 | – |
Comprehensive income reached ¥42.242 billion, compared with a comprehensive loss of ¥6.265 billion in the same quarter last year.
Dry bulk returns to profit
K Line’s Dry Bulk segment recorded revenue of ¥90.361 billion, up 27.8% from ¥70.731 billion.
The segment generated a profit of ¥9.008 billion, compared with a loss of ¥363 million a year earlier.
Capesize rates remained firm, supported by active movements of iron ore, bauxite and other commodities.
Rates for medium-sized and smaller vessels also increased. K Line attributed this trend to stronger coal transport demand linked to the Middle East situation and robust grain cargo volumes.
The group focused on managing its market exposure, reducing operating costs and improving vessel efficiency.
Energy transport revenue and profit increase
The Energy Resource Transport segment generated revenue of ¥29.883 billion, representing an increase of 27.1% from ¥23.515 billion.
Segment profit rose by 21.5% to ¥3.248 billion from ¥2.674 billion.
K Line said its LNG carriers, LPG carriers, thermal coal carriers, VLCCs, drillship and floating production, storage and offloading operations performed steadily under medium- and long-term contracts.
Market rates and exchange-rate movements also supported the segment’s performance.
Product Logistics profit declines
Product Logistics revenue increased by 10.7% to ¥166.005 billion from ¥150.010 billion.
However, segment profit declined by 55.3% to ¥10.892 billion from ¥24.378 billion.
K Line’s car carrier operations faced longer voyages due to port congestion and the security situation in the Middle East. Alternative routing also reduced fleet capacity utilisation and increased fuel and other operating costs.
Domestic logistics and port operations remained firm. Container terminal handling, towage activity and warehousing volumes all maintained stable levels.
In international logistics, weaker air cargo activity for some automobile-related shipments was offset by higher semiconductor volumes.
ONE contributes ¥1.1 billion in equity earnings
K Line said containership freight rates increased as supply and demand tightened amid port congestion, front-loading and inventory building.
However, higher fuel prices increased operating costs at Ocean Network Express.
According to K Line, ONE recorded higher revenue but lower profit year on year.
K Line recognised ¥2.661 billion in equity earnings from unconsolidated subsidiaries and affiliates during the quarter. ONE accounted for ¥1.1 billion of this amount.
Fuel prices rise sharply
K Line’s average fuel oil price increased to US$787 per metric tonne from US$550 a year earlier. This represented an increase of 43.3%.
The average exchange rate was ¥159.89 per US dollar, compared with ¥145.32 during the first quarter of FY2025.
K Line maintains full-year outlook
K Line maintained the financial forecast announced on 24 July 2026 for the year ending 31 March 2027.
The company expects annual operating revenue of ¥1.07 trillion and operating income of ¥85 billion.
Ordinary income and profit attributable to owners of the parent are both forecast at ¥135 billion.
| Financial indicator | Current FY2026 forecast | Previous forecast from May |
|---|---|---|
| Operating revenue | ¥1.07 trillion | ¥1.02 trillion |
| Operating income | ¥85 billion | ¥83 billion |
| Ordinary income | ¥135 billion | ¥100 billion |
| Profit attributable to owners of parent | ¥135 billion | ¥95 billion |
The forecast assumes an average exchange rate of ¥153.50 per US dollar and a fuel oil price of US$718 per metric tonne.
K Line expects dry bulk transportation demand to remain firm despite geopolitical risks and uncertainty surrounding China’s economy.
The Energy Resource Transport segment is expected to maintain stable earnings through medium- and long-term contracts.
The Product Logistics outlook remains uncertain due to the Middle East situation and US trade policies.
Assets and net assets decline
K Line reported total assets of ¥2.29 trillion as of 30 June 2026, down from ¥2.344 trillion at the end of March.
Cash and deposits declined to ¥217.81 billion from ¥322.548 billion.
Total liabilities increased to ¥512.837 billion from ¥502 billion.
Net assets decreased to ¥1.777 trillion from ¥1.842 trillion, while the shareholders’ equity ratio declined to 75.9% from 76.9%.
Dividend forecast remains unchanged
K Line maintained its annual dividend forecast at ¥120 per share.
The company plans to pay an interim dividend of ¥60 per share and a year-end dividend of ¥60 per share.
During the first quarter, K Line repurchased 26.574 million shares. The transaction increased treasury stock by ¥68.702 billion.
The repurchases form part of a share buyback programme with an upper limit of ¥130 billion, approved by the company’s board in May 2026.
