Kubota (6326) Q4 2025 earnings summary

Executive summary

• Major shift toward capital efficiency, with a focus on improving balance sheet and cash flow through retail finance review in North America.

• Revenue increased by 0.1% year-over-year to 3,018.9 billion yen, driven by domestic growth but offset by overseas declines.

• Operating profit fell 15.9% to 265.5 billion yen due to higher US tariffs, lower Farm & Industrial Machinery sales, and a weaker sales mix.

• Profit attributable to owners of the parent dropped 19.0% to 186.7 billion yen.

• Management emphasizes sustainable growth, capital efficiency, and ongoing financial reforms.

Financial highlights

• FY 2025 revenue was 3,018.9 billion yen, up 0.1% year-over-year; operating profit declined 15.9% to 265.5 billion yen.

• Domestic revenue rose 8.3% to 685.2 billion yen, while overseas revenue declined 2.1% to 2,333.7 billion yen.

• Free cash flow (FCF) increased significantly to 164.2 billion yen, up 91.0 billion yen year-over-year.

• Net cash provided by operating activities increased to 327.9 billion yen, up 45.8 billion yen from the prior year.

• Earnings per share (basic) decreased to 163.44 yen from 197.61 year-over-year.

Outlook and guidance

• FY 2026 revenue forecast at 3,150.0 billion yen (+4.3%), operating profit at 300.0 billion yen (+13.0%), and profit attributable to owners at 210.0 billion yen (+12.5%).

• Operating margin expected to rise to 9.5% (+0.7 pts YoY); FCF forecast at 170.0 billion yen.

• Growth is expected in both Farm & Industrial Machinery (overseas recovery) and Water & Environment segments.