Kubota (6326) Q1 2026 earnings summary

Executive summary

• Revenue rose 13.7% year-over-year to ¥810.0 billion, with operating profit up 59.1% to ¥98.0 billion and profit attributable to owners up 77.2% to ¥73.3 billion, driven by strong growth in both domestic and overseas markets.

• Growth was fueled by strong machinery sales, especially in North America and Europe, and robust demand in farm equipment and construction machinery.

• Operating profit benefited from higher sales volumes, price revisions in North America, and favorable exchange rates.

• Comprehensive income for the period was ¥91.9 billion, a significant turnaround from a loss in the prior year.

Financial highlights

• Revenue: ¥810.0 billion (+13.7% year-over-year); operating profit: ¥98.0 billion (+59.1%); profit before income taxes: ¥102.8 billion (+62.8%); profit attributable to owners: ¥73.3 billion (+77.2%).

• Machinery segment revenue up 14.9%.

• Basic earnings per share: ¥64.45 (up from ¥35.97 year-over-year).

• Excluding foreign exchange effects, revenue grew by ¥65.0 billion and operating profit by ¥12.5 billion.

• Free cash flow improved by ¥14.8 billion year-over-year, despite a negative FCF of ¥12.7 billion.

Outlook and guidance

• Full-year 2026 revenue forecast: ¥3,150.0 billion (+4.3% year-over-year); operating profit forecast: ¥300.0 billion (+13.0%); profit attributable to owners forecast: ¥210.0 billion (+12.5%).

• Assumptions include exchange rates of ¥145/USD and ¥165/EUR.

• No changes to previously announced forecasts; geopolitical risks and tariff changes may impact results.

• North American and European markets show resilience in higher horsepower segments and construction machinery.

• Indian market continues to expand, while Thailand faces challenges from crop prices and input costs.