Komatsu (6301) Q4 2025 earnings summary

Executive summary

• FY 2024 net sales rose 6.2% year-on-year to JPY 4,104.4 billion, with operating income up 8.2% to JPY 657.1 billion and net income up 11.7% to JPY 439.6 billion, driven by mining equipment and favorable FX rates.

• All business segments posted higher sales and profits, with Industrial Machinery & Others segment profit up 166.5% year-on-year.

• Q4 FY 2024 net sales increased 7.2% and net income rose 45.3% year-on-year.

• Management achieved targets for the previous mid-term plan, with record highs in sales and operating income.

• The final year of the mid-term plan focused on innovation, earnings power, and resilience.

Financial highlights

• Operating income margin improved to 16.0% in FY 2024, up 0.3 points year-on-year.

• Free cash flow increased by JPY 76.1 billion to JPY 306.5 billion.

• Shareholders' equity ratio rose to 55.0%.

• Annual dividend increased to JPY 190 per share, payout ratio at 40.1%.

• Net cash from operating activities increased to JPY 517.2 billion; cash and equivalents at year-end were JPY 385.6 billion.

Outlook and guidance

• FY 2025/2026 net sales projected to decrease 8.8% to JPY 3,745.0 billion, with operating income down 27.3% and net income down 29.7% year-on-year, mainly due to yen appreciation and US tariffs.

• Dividend per share to remain at JPY 190, with payout ratio rising to 56.7%.

• New medium-term plan launched, focusing on innovation, profitability, and business transformation.

• U.S. tariffs and FX volatility expected to negatively impact sales and profits.

• Global demand for major products and mining equipment projected to decrease by 0–5% in FY 2025.