Komatsu (6301) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 declined 5.2% year-over-year to JPY 909.5 billion, with operating income down 10.6% to JPY 140.4 billion and net income attributable to shareholders down 16.9% to JPY 91.2 billion, mainly due to yen appreciation, lower sales volume, and higher costs.

• Despite price increases, sales and profits fell as FX headwinds and volume declines outweighed gains.

• Minimal impact from new US tariffs in Q1; full-year guidance remains unchanged.

• Launched a three-year Strategic Growth Plan focused on innovation, growth, and business transformation.

Financial highlights

• Operating income ratio decreased by 1 percentage point to 15.4%.

• Construction, mining, and utility equipment segment sales fell 5.5% to JPY 844.9 billion; segment profit dropped 14.1% to JPY 122.3 billion.

• Retail finance sales were flat at JPY 30.4 billion, but segment profit rose 22.5% to JPY 9.4 billion.

• Industrial machinery and other sales decreased 4.6% to JPY 43.5 billion, while segment profit surged 43.5% to JPY 7.2 billion.

• Total assets increased to JPY 5,846.2 billion, with inventory assets up JPY 94 billion to JPY 1,500.7 billion.

Outlook and guidance

• Full-year FY2025 sales and profit guidance unchanged; net sales expected at JPY 3,745.0 billion (down 8.8%), operating income at JPY 478.0 billion (down 27.3%), and net income at JPY 309.0 billion (down 29.7%).

• Estimated Q1 FY2025 demand for major products declined 3% year-over-year; full-year demand outlook not revised.

• Price increases from August orders expected to offset some cost increases, with over JPY 10 billion impact anticipated.

• Tariff-related cost impact for the year expected at JPY 75–78.5 billion, about 1.5% of sales; U.S. tariff cost impact revised downward by 3.5 billion yen compared to April forecast.

• No changes to dividend projections; total annual dividend forecast at JPY 190 per share.