Rental income steady, costs climb
Kawasaki Co., Ltd. (TSE: 3045), based in Kishiwada, Osaka Prefecture, reported non-consolidated results for FY8/2026, the twelve months from September 1, 2025 to August 31, 2026, on October 14, 2026 under Japanese GAAP. Net sales rose 0.7% to ¥2,307 million, while operating profit fell 8.1% to ¥474 million, ordinary profit 8.0% to ¥473 million and net profit 7.3% to ¥313 million. Earnings per share were ¥147.02, against ¥157.58.
Three businesses
The leasing and warehousing business, the company's main earner, kept its tenants in place, persuaded one tenant that had planned to leave to stay and fitted LED lighting, and began leasing a newly rented yard site in Kishiwada in the fourth quarter. Its sales edged up 0.2% to ¥1,404 million, but segment profit fell 5.6% to ¥555 million.
Apparel sales rose 0.3% to ¥539 million as membership and sales on its own e-commerce site grew strongly, helped by its shareholder-benefit programme, but higher minimum wages, raw-material costs and larger inventory write-downs left an operating loss of ¥19 million, slightly wider than a year earlier. The hotel business lifted sales 3.5% to ¥363 million on accommodation demand around the Osaka-Kansai Expo, but rising wages and food costs in its restaurants, where the company passed on only part of the increase to keep customers, widened its loss to ¥62 million from ¥53 million.
Balance sheet, dividend and outlook
Total assets fell 2.1% to ¥7,887 million as buildings depreciated and ¥271 million of long-term debt was repaid, while net assets rose 3.6% to ¥5,962 million, lifting the equity ratio to 75.6% from 71.4%. Operating cash flow was ¥540 million and cash and equivalents ended the year at ¥497 million, down from ¥659 million. The annual dividend was held at ¥50, paid in two ¥25 instalments, and the same is planned for FY8/2027.
For FY8/2027 the company forecasts net sales of ¥2,340 million (+1.4%), operating profit of ¥419 million (−11.4%), ordinary profit of ¥419 million (−11.5%) and net profit of ¥270 million (−13.7%). It expects a full year of rent from the Kishiwada yard and plans to acquire a new warehouse, while watching hotel demand after the Expo.
| Metric | FY8/2026 | FY8/2025 | Change |
|---|---|---|---|
| Net sales (¥ million) | 2,307 | 2,291 | +0.7% |
| Operating profit (¥ million) | 474 | 516 | −8.1% |
| Ordinary profit (¥ million) | 473 | 514 | −8.0% |
| Net profit (¥ million) | 313 | 338 | −7.3% |
| EPS (¥) | 147.02 | 157.58 | −6.7% |
| Apparel — revenue (¥ million) | 539 | 537 | +0.3% |
| Apparel — segment profit (¥ million) | -19 | -19 | loss widened |
| Leasing & warehousing — revenue (¥ million) | 1,404 | 1,402 | +0.2% |
| Leasing & warehousing — segment profit (¥ million) | 555 | 588 | −5.6% |
| Hotel — revenue (¥ million) | 363 | 350 | +3.5% |
| Hotel — segment profit (¥ million) | -62 | -53 | loss widened |
| Total assets (¥ million) | 7,887 | 8,058 | −2.1% |
| Net assets (¥ million) | 5,962 | 5,755 | +3.6% |
| Equity ratio | 75.6% | 71.4% | +4.2 pt |
| FY8/2027 guidance — revenue (¥ million) | 2,340 | — | +1.4% |
| FY8/2027 guidance — operating profit (¥ million) | 419 | — | −11.4% |
| FY8/2027 guidance — ordinary profit (¥ million) | 419 | — | −11.5% |
| FY8/2027 guidance — net profit (¥ million) | 270 | — | −13.7% |
| Annual dividend per share (¥) | 50.00 | 50.00 | unchanged |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.