JinkoSolar reports record cash flow

JinkoSolar (NYSE: JKS) announced its Q2 2025 earnings on August 29, 2025. The order volume, revenue, operating income, and free cash flow for the fiscal year ending March 31, 2025, all reached record highs, and the annual dividend also increased by 15% year-on-year to 23 yen. This summary focuses on the important strategic updates, business performance, and future outlook that will impact the company's long-term trajectory.

The strength of record cash flow strengthens JinkoSolar's financial foundation

Free cash flow improved by 142.6 billion yen year-on-year, and operating cash flow reached 530.4 billion yen, both recording all-time highs. Cash and cash equivalents amounted to 657.8 billion yen at the end of the fiscal year, exceeding interest-bearing liabilities of 651.8 billion yen, resulting in a negative net interest-bearing debt. Additionally, the equity ratio stabilized at approximately 35%, and the D/E ratio recorded its lowest ever.

"The free cash flow also reached a record high of 342.7 billion yen. In addition, we achieved all the targets set in the most recent performance forecast. Considering the increase in equity capital due to the recording of net income for the fiscal year 2024, we will raise the year-end dividend from the previous forecast of 12 yen to an increase of 1 yen, making the annual dividend 23 yen. Furthermore, the annual dividend for the previous fiscal year was 20 yen after adjusting for stock splits, so this represents an increase of 3 yen or 15% compared to the previous year. This dividend per share will be the highest ever when adjusted for last year's stock split."

-- Hisato Ozawa, Director, Executive Vice President, and CFO

This record cash flow and strengthened financial condition have enabled the company to secure funding for future growth initiatives, enhance shareholder returns, and improve financial flexibility in a volatile macroeconomic environment.

JinkoSolar Captures Global Demand Shift in Energy and Defense Sectors

The total order volume for the Gas Turbine Combined Cycle (GTCC) segment reached a record high, securing orders for 25 large gas turbines as global demand for gas turbines surged to 55 gigawatts. The order volume in the defense sector also remained at a high level due to a notable increase in inquiries for high-efficiency gas turbines for Japan's strategic projects, especially for data centers and semiconductors in North America.

"In the fiscal year 2024, our company received orders for 25 large gas turbines, setting a record for the highest order amount in history. Although not mentioned in this slide, we believe we are in second place in OEM-based market share, following Beat Renova. As shown in the graph on the right, due to the increase in orders over the past few years, both new installations and service revenues continue to grow, and we expect an increase in revenue for the fiscal year 2025 as well."

-- Hisato Ozawa, Director, Executive Vice President, and CFO

The strong order momentum in the energy and defense segments demonstrates the company's ability to capture global growth trends and maintain its position as a market leader, supporting a solid revenue pipeline for the coming fiscal year.

Profit Margin Improvement and Portfolio Optimization through Business Improvement

The company has launched a productivity-focused business optimization plan that includes the expansion of digitization, supply chain adjustments, and a shift towards providing higher value-added services. Notably, the operating profit margin (OPM) of the energy business is expected to rise from 11% in fiscal 2024 to 13% in fiscal 2025. Profitability in the gas turbine sector is improving, with advanced gas turbines for baseload applications contributing to higher profit margins. Additionally, further measures have been initiated to alleviate past supply chain disruptions in logistics and mass production units.

"Our gas turbine customers are seeking advanced gas turbines, utilizing super-efficient gas turbines as baseload. The load is approximately 100% full operation. This ratio is very high in our business. This is our characteristic, and it directly leads to high profitability for customers using super-efficient gas turbines. Therefore, we believe that our competitive advantage in the turbine business is maintained. Of course, internally, we are making preparations for the next steps to maintain that competitive advantage."

-- Eizaku Ito, President and CEO

Through these business improvements and a focus on high value-added segments, sustainable profit margin expansion and enhanced competitive advantage in key markets are expected.

Future Outlook

For the fiscal year 2025 (ending March 31, 2026), the management expects growth in sales and profits, with order volume projected at approximately 6 trillion yen and a planned increase in dividends of 1 yen per share to 24 yen. In terms of quantitative guidance, due to the impact of the timing of advance payments from the previous period, free cash flow is expected to be a negative 200 billion yen, but operating cash flow is forecasted to remain robust. While management has not provided clear EPS guidance, they emphasize that potential U.S. tariffs are not factored into their forecasts and highlight continued investment in R&D, digital transformation, and optimization of business areas as key priorities.