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Do we like Kawasaki Heavy Industries?

Japanese maker of motorcycles, rail cars, ships, aerospace, robots and hydrogen energy equipment, based in Tokyo and Kobe.

Our score: 5 out of 10. Mixed. It does serious hydrogen and clean-energy work, but 2024–25 misconduct scandals involving Japan's defence ministry count against it.

Kawasaki Heavy is a big Japanese industrial group. It makes motorcycles, trains, ships, aircraft parts and submarines, and it is putting a lot into hydrogen energy.

The hydrogen push is the good bit. In January 2026 it signed a deal with Japan Suiso Energy to build the world's largest liquefied hydrogen carrier. It has also started hydrogen engine and power-generation trials.

The bad bit is the submarine scandal. A Japanese Defense Ministry report found fictitious transactions used to fund crew supply demands, plus gifts to ministry officials. The earliest case dates back to 1985.

The ministry also suspended the company from designated government contracts for 2.5 months, from December 2025 to March 2026, over submarine diesel generator inspection misconduct. It said safety and performance weren't affected. Kawasaki also found misconduct in marine engine testing. That's why we land in the middle.

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