Kubota (6326) Q2 2026 earnings summary

Executive summary

• Revenue for FY 2026 2Q rose by 16.2% year-over-year to ¥1,690.3 billion, driven by strong overseas sales, especially in Farm & Industrial Machinery, with North America and Machinery segments leading.

• Operating profit surged 64.7% year-over-year to ¥235.6 billion, aided by price adjustments, higher sales volumes in North America, effective fixed-cost management, favorable exchange rates, and U.S. tariff refunds.

• Profit attributable to owners increased 87.8% year-over-year to ¥173.7 billion.

• Growth was supported by all major regions and business segments.

Financial highlights

• FY 2026 2Q revenue: ¥1,690.3 billion (vs. ¥1,454.9 billion in FY 2025 2Q); operating profit: ¥235.6 billion (vs. ¥143.0 billion); profit before income taxes: ¥247.8 billion (vs. ¥151.5 billion).

• Net income for the period was ¥185.7 billion, up 58.2% year-over-year.

• Basic earnings per share rose to ¥152.96 from ¥80.60 year-over-year.

• Free cash flow improved to ¥122.0 billion, up ¥59.2 billion year-over-year.

• Interim dividend increased by ¥1 to ¥26 per share; full-year forecast at ¥52.00 per share.

Outlook and guidance

• FY 2026 full-year revenue forecast revised upward to ¥3,280.0 billion (+8.6% YoY), operating profit: ¥400.0 billion (+50.7% YoY).

• Profit attributable to owners forecasted at ¥289.0 billion (+54.8% YoY).

• OP margin expected to rise to 12.2% (+3.4 pts YoY), FCF forecast at ¥230.0 billion (+¥65.8 billion YoY).

• Assumptions include exchange rates of ¥157 = US$1 and ¥183 = €1.

• Additional ¥40.0 billion share buyback planned.