Komatsu (6301) Q3 2026 earnings summary

Executive summary

• Q3 FY2025 net sales rose 3.5% year-on-year to JPY 1,023.9 billion, but operating profit fell 12.7% to JPY 142 billion and net income dropped 13.1% to JPY 94.1 billion.

• For the nine months ended December 2025, net sales declined 1.4% year-on-year to JPY 2,915.5 billion, operating income decreased 10.1% to JPY 419 billion, and net income fell 13% to JPY 269.8 billion.

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

• Industrial machinery sales rose, driven by demand in the auto and semiconductor sectors.

Financial highlights

• Q3 operating income ratio declined by 2.5 points to 13.9%; net income margin also decreased.

• Nine-month operating income ratio dropped 1.4 points to 14.4%.

• Free cash flow for the nine-month period was positive at JPY 115.7 billion.

• Net income attributable to shareholders declined 13% to JPY 269.8 billion; EPS was JPY 295.82.

• Total assets increased to JPY 6,307.9 billion, and shareholders' equity rose to JPY 3,359.3 billion.

Outlook and guidance

• Full-year FY2025 projections remain unchanged: net sales of JPY 3,888.0 billion (down 5.3% year-on-year), operating income of JPY 500.0 billion (down 23.9%), and net income of JPY 320.0 billion (down 27.2%).

• Dividend forecast unchanged at JPY 190 per share for FY2026.

• Global demand for construction, mining, and utility equipment is expected to decrease 0–5% for FY2025, with mining equipment demand projected to fall 10–15%.

• North American and European demand steady; Southeast Asia and Japan face declines.