Kawasaki Kisen Kaisha, Ltd. (“K LINE”) posted softer results for the first half of FY2025 as weaker product logistics and container shipping markets weighed on performance. However, the group lifted its full-year revenue guidance and highlighted continued financial strength and stable energy-related earnings.
For the six months ended September 30, 2025, operating revenue fell 7% to JPY 500.6 billion, while operating income dropped 29.7% to JPY 43.0 billion. Net profit attributable to owners declined 62.5% to JPY 68.6 billion, mainly due to lower equity earnings from Ocean Network Express (ONE). Operating margins contracted as container freight rates softened amid vessel oversupply in the global market.
Cash and deposits increased significantly, lifting total assets to JPY 2.23 trillion and raising the shareholders’ equity ratio to 75.6%. The company continued to strengthen its balance sheet while maintaining disciplined capital allocation.
Segment performance
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Dry Bulk: Revenue and profit declined on temporary market softness, though Cape-size and mid-size vessel rates improved from July. The company focused on cost control and efficient vessel operations.
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Energy Transport: Profit improved despite slightly lower revenue. LNG carriers, LPG carriers and other energy assets delivered stable earnings under long-term contracts.
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Product Logistics: Results weakened due to softer container markets and lower equity income from ONE. Car carrier activity remained solid across key trade lanes, and logistics volumes were steady.
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Other Businesses: Returned to profit.
Outlook
K LINE updated its full-year forecast, now expecting revenue of JPY 984.0 billion (+JPY 16.0 billion from earlier guidance). It anticipates ordinary income of JPY 100.0 billion for FY2025, down from the prior view on continued freight-rate pressure. The company plans to pay a total annual dividend of JPY 120 per share, reaffirming its focus on shareholder returns.
Management noted stable trends in energy transport and car carriers, while container markets remain cautious amid geopolitical uncertainty and global policy shifts. K LINE intends to drive efficiency, sustainable fleet renewal and long-term contract growth while keeping strict investment discipline.
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