Komatsu (6301) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025/FY2026 declined 5.2% year-on-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 declined, with minimal impact from new US tariffs in Q1.

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

Financial highlights

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

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

• Shareholders' equity ratio declined to 53.1%, and net debt-to-equity ratio was 0.29x.

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

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

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%), EPS JPY 334.83.

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

• Price increases to be implemented from August orders, expected to impact profits by over JPY 10 billion in the second half.

• 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.