Komatsu's share price fell from ¥6,708 to ¥6,182 between 10/23 and 10/30, plunging on 10/29 to ¥6,300, down 7.56% from the previous day. In the second-quarter results for the fiscal year ending March 2027, released on 10/29, revenue rose 14.1% year on year and net profit rose 9.2%.
The share price fell from ¥6,708 to ¥6,182 between 23 October and 30 October, plunging on 29 October to ¥6,300, down 7.56% from the previous day. News reported on 29 October also indicated that the results could fall below consensus, leading to a period of wider price movements and higher trading volume.
The summary of the second-quarter results for the fiscal year ending March 2027, announced that day, showed revenue of ¥2.158 trillion, up 14.1% year on year, operating profit of ¥286.6 billion, up 3.5%, interim profit before tax of ¥271.0 billion, up 4.9%, and interim net profit attributable to owners of the company of ¥191.9 billion, up 9.2%. The weaker yen, higher construction equipment sales, and increased semiconductor-related revenue contributed.
Performance over the past 12 quarters has been somewhat weak and broadly flat. Net profit margin and ROE have declined, EPS growth has stalled relative to revenue growth, and the equity ratio has remained largely unchanged. Future performance checkpoints include higher construction equipment sales volumes, improved pricing, and broader adoption of ICT construction equipment. Geopolitical risks and fluctuations in resource markets are also cited as risk factors.