Komatsu (6301) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose 14.7% year-on-year to JPY 1,043.1 billion, driven by strong performance in construction, mining, utility equipment, and industrial machinery, setting a record high for a first quarter.

• Operating income increased 8.0% year-on-year to JPY 151.6 billion, with a margin of 14.5% (down 0.9pp year-on-year); net income grew 5.4% to JPY 96.2 billion.

• Growth was supported by a weaker yen, improved selling prices, and higher sales volumes across major segments.

• Upward revisions were made to full-year sales and profit projections due to stronger-than-expected demand and reduced Middle East/tariff impacts.

• Achieved a key ESG milestone by being selected for the Dow Jones Best-in-Class World Index.

Financial highlights

• Construction, Mining, and Utility Equipment segment sales increased 14.4% year-on-year to JPY 966.9 billion; segment profit up 6.4% to JPY 130.1 billion.

• Retail Finance sales rose 7.4% to JPY 32.7 billion; segment profit up 2.8% to JPY 9.6 billion.

• Industrial Machinery and Others sales increased 21.7% to JPY 52.9 billion; segment profit up 25.1% to JPY 9.0 billion.

• Total assets at JPY 6,782.6 billion, up JPY 358.6 billion from prior year-end; inventories rose to JPY 1,715.2 billion.

• Free cash flow for Q1 was an outflow of JPY 1.6 billion; cash and cash equivalents increased by JPY 132.2 billion to JPY 571.9 billion.

Outlook and guidance

• FY2026 sales projected to rise 4.1% year-on-year to JPY 4,302 billion, revised upward by JPY 184 billion.

• Operating income forecast to decrease 2.2% to JPY 555 billion, but revised upward by JPY 47 billion.

• Net income expected to fall 7.3% to JPY 349 billion, revised upward by JPY 31 billion.

• Dividend per share maintained at JPY 190; payout ratio 48.6%.

• Upward revision reflects limited demand declines in regions affected by Middle East instability and reduced impact of U.S. tariffs.