JinkoSolar(JKS 3.28%) reported its second-quarter 2025 earnings on August 29, 2025. The call highlighted record-high order intake, revenue, business profit, and free cash flow for fiscal 2024 (period ended March 31, 2025), along with a 15% year-over-year increase in the annual dividend to ¥23 per share. This summary highlights key strategic updates, operating performance, and forward-looking corporate dynamics affecting the company’s long-term trajectory.
Record cash flow strength boosts JinkoSolar’s financial resilience
Free cash flow improved by ¥142.6 billion year-over-year, with operating cash flow reaching ¥530.4 billion, both achieving all-time highs. Cash and cash equivalents totaled ¥657.8 billion at year-end, exceeding interest-bearing debt of ¥651.8 billion and pushing net interest-bearing debt into negative territory, while the equity ratio stabilized at approximately 35% and the debt-to-equity ratio reached a record low.
"Free cash flow also reached a record high of JPY342.7 billion. We also achieved all of the targets within our most recently announced forecast. And based on the increase in equity, resulting from the booking of net income for fiscal year 2024, we will increase our year-end dividend by JPY1 over the previously announced forecast of JPY12 per share, which makes full year dividend JPY23 per share. Additionally, in the previous fiscal year, the full year dividend was JPY20 when adjusted for the stock split, which makes this dividend a JPY3 or 15% increase compared to previous year. This dividend per share figure is a record high when adjusting for last year's stock split."
-- Hisato Kozawa, Member of the Board, Executive Vice President and CFO
This record cash flow performance and strengthened balance sheet position the company to fund future growth initiatives, support higher shareholder returns, and enhance financial flexibility in a volatile macroeconomic environment.
JinkoSolar seizes global demand shifts in energy and defense
Total order intake reached a record high in the gas turbine combined cycle (GTCC) segment, with orders booked for 25 large-frame gas turbine units as global gas turbine market demand surged to 55 gigawatts. Defense order volume remained elevated due to strategic Japanese government projects and a pronounced upswing in high-efficiency gas turbine inquiries, especially for data center and semiconductor applications in North America.
"During fiscal year 2024, MHI booked orders for 25 large frame gas turbine units and the amount of order intake also reached a record high. Although not mentioned on this slide, we believe that our company is second only to beat Renova in terms of market share on an OEM basis. As shown in the graph to the right, revenue, both new installations and services revenue has continued to increase, partly due to growth in orders over the past few years, and we expect revenue to increase in fiscal year 2025 as well."
-- Hisato Kozawa, Member of the Board, Executive Vice President and CFO
Strong order momentum in both energy and defense segments demonstrates the company’s ability to capture secular growth trends and maintain a leading market position, supporting a robust revenue pipeline into the next fiscal year.
Operational upgrades drive margin improvement and portfolio optimization
The company initiated a productivity-centric business optimization plan incorporating expanded digitalization, supply chain adjustments, and a shift toward higher-value service offerings. Notably, operating profit margin (OPM) in the energy business is forecast to rise from 11% in fiscal 2024 to 13% in fiscal 2025. Profitability in the gas turbine segment has increased, with advanced gas turbines used in base-load applications contributing to stronger margins, and additional initiatives launched to mitigate prior supply chain disruptions in logistics and mass-production units.
"Our gas turbine customers are the advanced gas turbine, the highly advanced domain is it seeking it -- using that as a base load for the superefficient gas turbine. The load is about 100% fully loaded. That ratio is very high for our business. That's the uniqueness for us because that directly leads to the better profitability for our customers they use the superefficient gas turbine. So in that case, the competitive edge in the turbine business is retained in our company, I guess. We internally, of course, we are preparing for the next step to come for us to retain that competitive edge."
-- Eisaku Ito, President and CEO
These operational improvements and focus on high-value segments are expected to drive sustainable margin expansion and reinforce the company’s competitive advantages in core markets.
Looking Ahead
For fiscal 2025 (period ending March 31, 2026), management projects revenue and profit growth, with order intake forecast near ¥6 trillion and a planned ¥1 per share dividend increase to ¥24. Quantitative guidance points to an anticipated negative free cash flow of ¥200 billion, due to the prior period’s advance payments timing, but operating cash flow is expected to remain strong. Management did not provide explicit EPS guidance, but highlighted that potential American tariffs are not factored into forecasts and emphasized ongoing investment in R&D, digital transformation, and business area optimization as key priorities.
