Komori
Financial results presentation6301KOMATSU LTD.Machinery

FY2025 Financial Results Briefing (Materials)

In FY2025, revenue increased slightly, supported by improved selling prices, while operating income and net income declined due to lower volumes, product mix, higher costs resulting from U.S. tariffs and other factors. For FY2026, the Company expects lower revenue and lower earnings, assuming the impact of the situation in the Middle East and tariffs, among other factors.

Worth reading
82Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
898
¥100 million (year-on-year change in FY2025 operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFY2025 (including the FY2026 earnings outlook)12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales41,328 Hundreds of millions of yen+0.7%
Operating profit5,673 Hundreds of millions of yen-13.7%
Net income3,764 Hundreds of millions of yen-14.4%
Operating profit margin13.7 %
Full-year earnings forecast
Net Sales
41,180 Hundreds of millions of yen
Segment profit
5,140 Hundreds of millions of yen
Operating profit
5,080 Hundreds of millions of yen
Profit before income taxes for the period
4,660 Hundreds of millions of yen
Net income
3,180 Hundreds of millions of yen
Dividend per share
¥190
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Management targets are progressing broadly as planned
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Construction Machinery & Vehicles revenue45 Hundreds of millions of yen
    FactorsForeign exchange effects
  • Construction Machinery & Vehicles revenue-758 Hundreds of millions of yen
    FactorsVolume variance
  • Construction Machinery & Vehicles revenue791 Hundreds of millions of yen
    FactorsSales price differential
  • Construction Machinery & Vehicles segment profit-25 Hundreds of millions of yen
    FactorsForeign exchange effects
  • Construction Machinery & Vehicles segment profit791 Hundreds of millions of yen
    FactorsSales price differential
  • Construction Machinery & Vehicles segment profit-726 Hundreds of millions of yen
    FactorsVolume, product mix and other variances
  • Construction Machinery & Vehicles segment profit-816 Hundreds of millions of yen
    FactorsCost variance
  • Construction Machinery & Vehicles segment profit-301 Hundreds of millions of yen
    FactorsFixed-cost variance
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • 150 JPY/USD
    AssumptionsUSD exchange rate
  • 174 JPY/EUR
    AssumptionsEUR exchange rate
  • 106 JPY/AUD
    AssumptionsAUD exchange rate
  • 10 %
    AssumptionsSection 122 additional tariff rate
  • 25% on derivative products, 50% on steel and aluminum products
    AssumptionsSteel and aluminum tariffs
  • 300 Hundreds of millions of yen
    AssumptionsIEEPA tariff refunds
New initiatives
  • Development of software-defined vehicles for next-generation mining equipment in collaboration with Applied Intuition
  • Commercialization of autonomous operating technology for construction machinery in collaboration with ティアフォー
  • Operation of a power-agnostic truck at a copper mine in Sweden
  • Demonstration testing of a hydraulic excavator equipped with a hydrogen fuel cell
  • Acquisition of the business of SRC of Lexington in the United States
  • Strengthening of the sales and service structure in Africa
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative AHS units deployed1,000 Units
  • CO2 reduction rate from production-48 % vs. 2010
  • CO2 reduction rate during product operation-23 % vs. 2010
  • Renewable energy usage ratio36 %
Segment results
  • Construction Equipment & Vehicles
    Net Sales38,060 Hundreds of millions of yen
    Year-on-Year Change in Revenue (%)0.2
    Segment profit4,911 Hundreds of millions of yen
    Profit year-on-year change_pct-18
  • Retail Finance
    Net Sales1,261 Hundreds of millions of yen
    Year-on-Year Change in Revenue (%)2.4
    Segment profit366 Hundreds of millions of yen
    Profit year-on-year change_pct24.4
  • Industrial Machinery & Others
    Net Sales2,388 Hundreds of millions of yen
    Year-on-Year Change in Revenue (%)6.8
    Segment profit379 Hundreds of millions of yen
    Profit year-on-year change_pct38.5
Medium-term management plan targets
  • Revenue growth
    TargetGrowth rate above the industry average
    Actual results+0.7%
  • Operating margin
    TargetIndustry-leading level
    Actual results13.7%
  • FCF
    Target¥1 trillion cumulative over 3 years (excluding M&A-related expenditures)
    Actual results¥263.2 billion
  • ROE
    Target10% or higher
    Actual results11.3%
Financial targets
  • ROE
    Target10% or higher
    Actual results11.3%
  • ROA (Retail Finance business)
    Target1.5%〜2.0%
    Actual results2.4%
  • Net debt-to-equity ratio (Retail Finance business)
    Target6x or lower
    Actual results4.45
  • Consolidated payout ratio
    Target40% or more
    Actual results45.9%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • -901 Hundreds of millions of yen
    DetailsLower revenue due to the situation in the Middle East and other factors
  • ¥188 100 million loss
    DetailsHigher costs due to the situation in the Middle East and other factors
  • ¥378 100 million loss
    DetailsHigher costs due to U.S. tariffs
Annual Dividend
Annual¥190 per share
Payout ratio
Consolidated payout ratio45.9 %
Target40% or more
Acquisition of treasury shares
1,000 Hundreds of millions of yen
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY2025 (including the FY2026 earnings outlook)
Net Sales41,328 Hundreds of millions of yen (YoY +0.7%)
Operating profit5,673 Hundreds of millions of yen (YoY -13.7%)
Net income3,764 Hundreds of millions of yen (YoY -14.4%)
Operating profit margin13.7 %
Full-year earnings forecastNet Sales 41,180 Hundreds of millions of yen / Segment profit 5,140 Hundreds of millions of yen / Operating profit 5,080 Hundreds of millions of yen / Profit before income taxes for the period 4,660 Hundreds of millions of yen / Net income 3,180 Hundreds of millions of yen / Dividend per share ¥190
Self-assessment against the planManagement targets are progressing broadly as planned
Segment resultsSegment Construction Equipment & Vehicles / Net Sales 38,060 Hundreds of millions of yen / Year-on-Year Change in Revenue (%) 0.2 / Segment profit 4,911 Hundreds of millions of yen / Profit year-on-year change_pct -18, Segment Retail Finance / Net Sales 1,261 Hundreds of millions of yen / Year-on-Year Change in Revenue (%) 2.4 / Segment profit 366 Hundreds of millions of yen / Profit year-on-year change_pct 24.4, Segment Industrial Machinery & Others / Net Sales 2,388 Hundreds of millions of yen / Year-on-Year Change in Revenue (%) 6.8 / Segment profit 379 Hundreds of millions of yen / Profit year-on-year change_pct 38.5
Breakdown of Factors Affecting the ChangeSubject Construction Machinery & Vehicles revenue / Factors Foreign exchange effects / Amount 45 Hundreds of millions of yen, Subject Construction Machinery & Vehicles revenue / Factors Volume variance / Amount -758 Hundreds of millions of yen, Subject Construction Machinery & Vehicles revenue / Factors Sales price differential / Amount 791 Hundreds of millions of yen, Subject Construction Machinery & Vehicles segment profit / Factors Foreign exchange effects / Amount -25 Hundreds of millions of yen, Subject Construction Machinery & Vehicles segment profit / Factors Sales price differential / Amount 791 Hundreds of millions of yen, Subject Construction Machinery & Vehicles segment profit / Factors Volume, product mix and other variances / Amount -726 Hundreds of millions of yen, Subject Construction Machinery & Vehicles segment profit / Factors Cost variance / Amount -816 Hundreds of millions of yen, Subject Construction Machinery & Vehicles segment profit / Factors Fixed-cost variance / Amount -301 Hundreds of millions of yen
Key KPIsIndicator name Cumulative AHS units deployed / Value 1,000 Units / Year on year against the same period last year Not disclosed, Indicator name CO2 reduction rate from production / Value -48 % (vs. 2010) / Year on year against the same period last year Not disclosed, Indicator name CO2 reduction rate during product operation / Value -23 % (vs. 2010) / Year on year against the same period last year Not disclosed, Indicator name Renewable energy usage ratio / Value 36 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAssumptions USD exchange rate / Value 150 JPY/USD, Assumptions EUR exchange rate / Value 174 JPY/EUR, Assumptions AUD exchange rate / Value 106 JPY/AUD, Assumptions Section 122 additional tariff rate / Value 10 %, Assumptions Steel and aluminum tariffs / Value 25% on derivative products, 50% on steel and aluminum products, Assumptions IEEPA tariff refunds / Value 300 Hundreds of millions of yen
Risk amount incorporated into the outlookDetails Lower revenue due to the situation in the Middle East and other factors / Amount -901 Hundreds of millions of yen, Details Higher costs due to the situation in the Middle East and other factors / Amount ¥188 100 million (loss), Details Higher costs due to U.S. tariffs / Amount ¥378 100 million (loss)
Medium-term management plan targetsItem Revenue growth / Target Growth rate above the industry average / Actual results +0.7%, Item Operating margin / Target Industry-leading level / Actual results 13.7%, Item FCF / Target ¥1 trillion cumulative over 3 years (excluding M&A-related expenditures) / Actual results ¥263.2 billion, Item ROE / Target 10% or higher / Actual results 11.3%
Financial targetsIndicator ROE / Target 10% or higher / Actual results 11.3%, Indicator ROA (Retail Finance business) / Target 1.5%〜2.0% / Actual results 2.4%, Indicator Net debt-to-equity ratio (Retail Finance business) / Target 6x or lower / Actual results 4.45, Indicator Consolidated payout ratio / Target 40% or more / Actual results 45.9%
Annual DividendAnnual ¥190 per share / Interim Not disclosed / End of period Not disclosed
Payout ratioConsolidated payout ratio 45.9 % / Target 40% or more
Acquisition of treasury sharesAmount 1,000 Hundreds of millions of yen / Number of Shares Not disclosed / Period Not disclosed
New initiativesDevelopment of software-defined vehicles for next-generation mining equipment in collaboration with Applied Intuition, Commercialization of autonomous operating technology for construction machinery in collaboration with ティアフォー, Operation of a power-agnostic truck at a copper mine in Sweden, Demonstration testing of a hydraulic excavator equipped with a hydrogen fuel cell, Acquisition of the business of SRC of Lexington in the United States, Strengthening of the sales and service structure in Africa
Items this document does not state (12)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, revenue increased as the benefit from improved selling prices outweighed the impact of lower volumes, while lower volumes, product mix and cost variances, including U.S. tariffs, weighed on earnings. The FY2026 outlook incorporates the situation in the Middle East, higher crude oil prices, supply chain disruptions, U.S. tariffs and higher procurement prices, among other factors.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
FY2025 Financial Results Briefing (Materials) | KOMATSU LTD. (6301) timely disclosure | Komori