Komatsu (6301) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY2025 decreased 2.6% year-on-year to JPY 982.1 billion; operating income fell 6.7% to JPY 136.7 billion, and net income dropped 8.1% to JPY 84.5 billion.

• For the first half, net sales declined 3.9% year-on-year to JPY 1,891.6 billion, operating income fell 8.7% to JPY 277.1 billion, and net income decreased 12.9% to JPY 175.7 billion.

• Comprehensive income surged 124.3% year-on-year, mainly due to foreign currency translation adjustments.

• The company revised its FY2025 outlook upward from April but still projects a 5.3% decrease in net sales and a 23.9% drop in operating income year-on-year.

• Launched a three-year Strategic Growth Plan in April 2025, focusing on innovation, profitability, and business transformation.

Financial highlights

• Operating income ratio for Q2 was 13.9%, down 0.6 points year-on-year; for the first half, it was 14.6%, down 0.8 points.

• Free cash flow for the first half was an inflow of JPY 33.5 billion, limited by increased inventories.

• Shareholders' equity ratio declined to 54.3%, and net D/E ratio was 0.29x.

• Basic EPS for the first half was JPY 191.80, down from JPY 215.93.

• Cash dividends per share increased to 95 yen for the first half, up 12 yen year-on-year.

Outlook and guidance

• Full-year FY2025 net sales revised upward by JPY 143 billion from April, but projected to decrease 5.3% year-on-year to JPY 3,808–3,888 billion.

• Operating profit forecast revised up by JPY 22 billion, but still expected to fall 23.9% to JPY 500 billion; net income projected to decrease 27.2% to JPY 320 billion.

• Cash dividend per share for FY2025 projected at 190 yen, with a projected payout ratio of 54%.

• Tariff costs for FY2025 projected at JPY 90 billion (payment basis), with profit and loss impact at JPY 55 billion.

• Revised exchange rate assumptions: USD1 = JPY 143.2, EUR1 = JPY 164.9, AUD1 = JPY 92.7.