Komatsu (6301) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2024 rose 9.2% year-on-year to JPY 1.082 trillion, with Q2 net sales reaching a record high for the second quarter.

• Operating income for Q2 fell 2.3% year-on-year to JPY 146.4 billion, and net income decreased 8.1% to JPY 92 billion, despite positive currency effects and improved sales prices.

• For the first half, net sales increased 8% year-on-year to JPY 1,968.1 billion, operating income rose 2.2% to JPY 303.4 billion, but net income declined 1.9% to JPY 201.7 billion.

• Sales growth was driven by yen depreciation and improved selling prices, but profit margins were pressured by higher costs and unfavorable product/regional mix.

• Interim dividend per share is JPY 83, as planned.

Financial highlights

• Q2 net sales: JPY 1.082 trillion (+9.2% YoY); Q2 operating income: JPY 146.4 billion (-2.3% YoY); Q2 net income: JPY 92 billion (-8.1% YoY).

• First half net sales: JPY 1,968.1 billion (+8% YoY); operating income: JPY 303.4 billion (+2.2% YoY); net income: JPY 201.7 billion (-1.9% YoY).

• Operating income margin for Q2: 14.5% (-1.7 pts YoY); for first half: 15.4% (-0.9 pts YoY).

• Shareholders' equity ratio: 52.8%, down 1 point from previous year-end.

• Cash dividends per share increased to JPY 83 for the first half, up 11 yen year-over-year.

Outlook and guidance

• FY2024 net sales forecast revised up by JPY 127 billion to JPY 3.988 trillion, expected to reach a new record.

• Operating income forecast raised by JPY 16 billion to JPY 573 billion; net income forecast up by JPY 29 billion to JPY 376 billion.

• ROE expected at 12.6%; annual dividend per share forecast at JPY 167, payout ratio 41.2%.

• Construction, mining, and utility equipment sales to rise 1.8% YoY to JPY 3.679 trillion; segment profit to fall 5.7% to JPY 541 billion.

• Retail finance and industrial machinery segments both expected to see double-digit sales and profit growth.