Calepin des entreprises international 2026 VA.pdf — page 112

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KAWASAKI HEAVY INDUSTRIES (KHI)
Business trends
	
 Kawasaki Heavy Industries (KHI) posted revenues of 2.129 trillion yen (€13 billion) during fiscal year 2024-2025 
(ended March 31st), up 15.1% year-on-year in local currency. In particular, revenues in the Aerospace Systems 
division rose by 43.3%, driven by increased orders from Japan’s Ministry of Defense, Boeing (aerostructures 
and components for passenger aircraft), for which KHI is a subcontractor, and civil engine manufacturers.
	
 The group’s military activities are concentrated in two divisions: Aerospace Systems (military aircraft and 
helicopters) and Energy Solution & Marine Engineering (submarines). In the coming years, KHI intends 
to benefit from an increased level of orders in its domestic market. Japan’s Ministry of Defense intends to 
spend between 40 and 43 trillion yen (between €283 and €305 billion) on defence between April 2023 and 
March 2028, compared to 27.5 trillion yen (€213 billion) between April 2018 and March 2023.
Home market
	
 KHI generated 41% of its revenues in its domestic market in 2024-2025, including almost all of its defence 
activities. The group is a key supplier to the Japan Self-Defense Forces as prime contractor for the C-2 tactical 
transport aircraft and P-1 maritime patrol aircraft programmes. KHI is also the co-builder, alongside Mitsubishi 
Heavy Industries (MHI), of the Taigei-class attack submarines, powered by lithium-ion batteries. Both groups 
are tasked with building four submarines each (eight units in total).
	
 In October 2024, Japan’s Acquisition, Technology & Logistics Agency (ATLA) ordered 17 CH-47J/JA Chinook 
Block II heavy transport helicopters from KHI (to be assembled locally under licence from Boeing) for 
232 billion yen (€1,419 million), including 12 and 5 helicopters for the Japan Ground and Air Self-Defense 
Forces respectively.
	
 In December 2024, Japan’s Ministry of Defense presented its budget for the 2025 fiscal year (which begins 
on April 1st). It includes the acquisition of several items of equipment from KHI, in particular two P-1 maritime 
patrol aircraft for 84.8 billion yen (€518 million), one RC-2 electronic intelligence (ELINT) aircraft for 45.7 billion 
yen (€279 million) and Middle Range MPM anti-tank missiles for 5.6 billion yen (€34 million).
	
 The second Taigei-class lithium-ion-powered attack submarine built by KHI, named Raigei (SS-516), entered 
service with the Japan Maritime Self-Defense Force in March 2025. This submarine is the first of its class to 
be equipped with the new 12V 25/31 diesel engine supplied by the group. KHI is building a third submarine 
(SS-518, not yet named), which is scheduled to enter service in 2027.
Export markets
	
 KHI generated 59% of its revenues from exports in 2024-2025, mainly in the civil sector. In defence, KHI intends 
to win new markets by offering the Soryu-class conventionally-powered attack submarine, the C-2 tactical 
transport aircraft and the P-1 maritime patrol aircraft to foreign armed forces, although yet unsuccessfullly.
	
 The Italian Air Force has expressed interest in acquiring the group’s P-1 maritime patrol aircraft to regain the 
anti-submarine capabilities it lost when its Br 1150 Atlantic aircraft (Breguet) were withdrawn from service in 
2017. If acquired, these aircraft would be equipped with Italian systems (Leonardo’s ATOS mission system or 
Fincantieri’s MU90 Impact light torpedo).
Technology and Innovation
	
 The group’s R&D expenditure amounted to 49 billion yen (€299 million) in 2024-2025, representing 2.3% of 
revenues.
	
 In May 2025, KHI presented a naval version of its anti-drone laser weapon at the DSEI Japan exhibition in 
Chiba. Japan’s Acquisition, Technology & Logistics Agency could soon initiate a programme to develop such 
a weapon, for which the group hopes to be selected.
STRATEGIC HIGHLIGHTS