Kubota (6326) Q1 2025 earnings summary

Executive summary

• Revenue declined 8.1% year-over-year to 712.6 billion yen, with overseas sales down 11.8% and Japan up 6.9%.

• Operating profit fell 40.2% year-over-year to 61.6 billion yen, with margin dropping to 8.6%.

• Profit attributable to owners of the parent decreased 43.3% year-over-year to 41.3 billion yen.

• Domestic revenue rose 6.9% to 164.7 billion yen, while overseas revenue fell 11.8% to 547.9 billion yen, mainly due to lower Farm & Industrial Machinery sales in North America.

Financial highlights

• Revenue: 712.6 billion yen (down 8.1% year-over-year); Japan: 164.7 billion yen (+6.9%), Overseas: 547.9 billion yen (-11.8%).

• Operating profit: 61.6 billion yen (down 40.2% year-over-year); margin: 8.6%.

• Profit before income taxes: 63.1 billion yen (down 40.5% year-over-year); margin: 8.9%.

• Free cash flow improved by 10.3 billion yen year-over-year to -27.5 billion yen.

• Basic EPS for the quarter was 35.97 yen, down from 62.06 year-over-year.

Outlook and guidance

• Full-year 2025 revenue forecast is 3,050.0 billion yen (+1.1% year-over-year), with operating profit expected at 280.0 billion yen (-11.3%) and profit attributable to owners of the parent at 196.0 billion yen (-14.9%).

• Forecasts assume exchange rates of 145 yen/USD and 152 yen/EUR; potential U.S. tariff policy changes are not incorporated.

• Dividend forecast remains at 50.00 yen per share for the year.