Komatsu (6301) investor relations material

Executive summary

• Net sales 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 down 16.9% to JPY 91.2 billion, mainly due to yen appreciation and lower sales volume.

• Sales and profits were negatively impacted by the appreciation of the yen, despite improved selling prices partially offsetting lower volumes and higher costs.

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

• Tariff impacts in Q1 were minimal, but ongoing U.S. tariff policy and FX volatility remain key factors.

Financial highlights

• Operating income ratio decreased to 15.4%, down 1 point year-over-year.

• Shareholders' equity ratio declined by 1.9 points to 53.1%.

• Total assets rose to JPY 5,846.2 billion, mainly from increased inventory assets.

• Comprehensive income fell sharply to JPY 64.3 billion from JPY 288.2 billion, mainly due to foreign currency translation losses.

• Cash and cash equivalents increased to JPY 448.9 billion, up JPY 63.3 billion from the previous fiscal year-end.

Outlook and guidance

• Full-year FY2025/FY2026 guidance maintained: net sales JPY 3,745 billion (-8.8%), operating income JPY 478 billion (-27.3%), net income JPY 309 billion (-29.7%).

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

• Price increases to be implemented from August orders, expected to offset at least half of cost increases in H2.

• U.S. tariff cost impact revised downward, with a 30 billion yen reduction in payment basis and 3.5 billion yen less impact on profit and loss compared to April forecast.

• Guidance does not reflect the impact of planned share repurchases and cancellations.