Kawasaki pins defence growth on uncrewed aircraft and small turbofans

Kawasaki Heavy Industries is targeting defence aerospace as a main source of growth, according to a company presentation. Uncrewed aircraft and small turbofan engines sit at the centre of the strategy.

The Japanese group puts its defence business at Y510 billion ($3.2 billion) for the financial year ending 31 March 2027, roughly a fifth of group revenue. It aims to reach Y1 trillion by the middle of the next decade. Margins are projected to rise from around 5% at present to 10% from the 2027 financial year.

Kawasaki holds prime contractor roles on several programmes, including the C-2 transport, the P-1 maritime patrol aircraft and the T-4 trainer. In June 2026 it handed over the EC-2, a standoff electronic warfare aircraft, to the Japan Air Self-Defense Force, which is now testing it.

Future revenue is expected to come partly from what the company calls collaborative UAVs. These are designed to carry out missions such as electronic warfare and anti-ship strikes in contested areas while working alongside crewed platforms including the EC-2, the P-1 and airborne early warning and control aircraft. Smaller, expendable drones would take on jamming, deception and strike tasks in the same environments, while larger unmanned aircraft would support anti-submarine warfare.

Kawasaki sees artificial intelligence as important to these systems, including edge AI that would let units coordinate on missions in high-threat areas. To power uncrewed aircraft, it is continuing work on the KJ300/310 series of small engines, which it describes as the only small turbofans made in Japan able to supply enough electrical power for advanced applications.