Komatsu (6301) Q1 2025 earnings summary

Executive summary

• Net sales reached JPY 959.8 billion in Q1 FY2024, up 6.7% year-on-year, driven by favorable foreign exchange, improved selling prices, and steady mining equipment sales.

• Operating income rose 6.8% year-on-year to JPY 157.0 billion, with an operating margin of 16.4%.

• Net income attributable to Komatsu Ltd. increased 4.1% year-on-year to JPY 109.7 billion, marking a quarterly record high.

Financial highlights

• Construction, mining, and utility equipment segment sales grew 5.6% year-on-year to JPY 894.3 billion; segment profit up 2.8% to JPY 142.3 billion.

• Retail finance segment sales surged 33.2% year-on-year to JPY 30.5 billion; segment profit up 20.4% to JPY 7.6 billion.

• Industrial machinery and others segment sales increased 12.6% year-on-year to JPY 45.5 billion; segment profit soared 160.9% to JPY 5.0 billion.

• Total assets rose to JPY 6,037.9 billion, up JPY 401.2 billion from the previous fiscal year-end, mainly due to yen depreciation.

• Shareholders' equity ratio decreased 1.5 points to 52.3%.

Outlook and guidance

• Full-year FY2024 projections remain unchanged: net sales of JPY 3,861.0 billion, operating income of JPY 557.0 billion, and net income of JPY 347.0 billion; FX rates remain a key variable.

• FY2024 operating income ratio expected at 14.4%, down 1.3 points from FY2023.

• Global demand for construction, mining, and utility equipment projected to decrease 5–10% year-on-year in FY2024.

• Mining equipment demand expected to decrease 0–5% from FY2023.

• GHH acquisition to be consolidated from July, with negligible profit impact in the first year.