Kubota (6326) Q3 2025 earnings summary

Executive summary

• Revenue for FY 2025 Q3 was ¥2,204.3 billion, down 3.2% year-over-year, with domestic revenue up 9.8% and overseas revenue down 6.5%.

• Operating profit declined 22.0% year-over-year to ¥214.7 billion, mainly due to lower sales in North America and Farm & Industrial Machinery, and a deteriorated sales mix.

• Profit attributable to owners dropped 28.3% year-over-year to ¥142.0 billion.

• Free cash flow improved significantly year-over-year, reaching ¥101.2 billion, mainly from tighter control of financial receivables in North America.

Financial highlights

• Total assets as of September 30, 2025, were ¥5,831.7 billion, down ¥186.9 billion from the prior fiscal year-end.

• Net cash provided by operating activities increased by ¥60.1 billion year-over-year to ¥210.7 billion.

• Net cash used in investing activities was ¥109.6 billion, a decrease in outflow of ¥22.6 billion year-over-year.

• Net cash used in financing activities rose to ¥167.1 billion, mainly due to increased repayments of bonds and borrowings.

• Cash and cash equivalents at period-end were ¥222.1 billion, down ¥73.0 billion from the start of the period.

Outlook and guidance

• Full-year 2025 revenue is forecast at ¥2,880.0 billion, up 4.5% year-over-year.

• Operating profit is projected at ¥220.0 billion (down 30.3% year-over-year), and profit attributable to owners at ¥142.0 billion (down 38.4% year-over-year).

• No changes to previously announced forecasts; assumptions include exchange rates of ¥145/USD and ¥161/EUR.

• Free cash flow is projected to improve further, driven by retail finance program reviews and better working capital management.