Kubota (6326) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, declined 7.9% year-over-year to ¥1,454.9 billion, with operating profit down 31.0% to ¥143.0 billion and profit attributable to owners of the parent down 38.7% to ¥92.5 billion.

• U.S. market contracted in the first half due to recession concerns and tariffs, but conditions steadied from June.

• Domestic revenue rose 8.7% to ¥332.3 billion, while overseas revenue fell 11.9% to ¥1,122.6 billion, mainly due to lower Farm & Industrial Machinery sales in North America.

• Comprehensive income for the period was negative ¥19.0 billion, a sharp reversal from ¥402.2 billion in the prior year, mainly due to large exchange rate translation losses.

• Business structure reform and strict inventory control are being advanced, especially in the U.S.

Financial highlights

• FY 2025 2Q revenue: ¥1,454.9B, down 7.9% year-over-year; operating profit: ¥143.0B, down 31.0%.

• Profit attributable to owners: ¥92.5B, down 38.7% year-over-year.

• Operating profit margin fell to 9.8% from 13.1% year-over-year; net profit margin dropped to 6.4% from 9.5%.

• Earnings per share (basic) decreased to ¥80.60 from ¥128.33 year-over-year.

• North America revenue fell 18.4% year-over-year; Japan revenue rose 8.7%.

Outlook and guidance

• Full-year 2025 revenue forecast revised downward to ¥2,880.0 billion (down 4.5–5.6% YoY); operating profit forecast: ¥220.0B, down 21.4–30.3%.

• Profit attributable to owners forecast: ¥142.0B, down 27.6–38.4% year-over-year.

• Excluding FX, revenue expected to decrease by ¥41.0B and operating profit by ¥67.1B.

• U.S. market expected to stabilize; focus on mitigating tariff impact and flexible pricing.

• Assumptions include exchange rates of ¥145/USD and ¥161/EUR.