Komatsu Raises Sales Forecast to ¥4.45 Trillion as Demand Strengthens Across Several Regions
Key Facts
Komatsu raised its forecast for the fiscal year ending March 31, 2027, citing first-half demand in multiple regions that exceeded its initial estimates and its expectation that demand will remain above the level assumed at the start of the year. The company forecast annual sales of ¥4.45 trillion, compared with its previous estimate of ¥4.302 trillion, and operating profit of ¥585 billion, up from ¥555 billion. Komatsu said the revisions reflect strong demand and a greater-than-expected impact from the yen's weakness in the second quarter. The update puts construction and mining equipment at the center of the forecast revision, with a clear divergence between revenue growth and operating profit in the latest quarter. First-half results remain a key indicator for the company as it expects demand to stay above its previous estimates for the rest of the fiscal year.
In the fiscal second quarter, which ran from July to September 2026, sales rose 13.6% year over year to ¥1.1155 trillion. Operating profit, however, fell 1.2% to ¥135.1 billion, while net profit attributable to Komatsu rose 13.3% to ¥95.8 billion. The results show that sales growth did not fully translate into operating profit during the period, despite the increase in net profit. The company attributed the decline in segment profit to higher costs outweighing the positive effects of the weaker yen, higher sales volumes and improved selling prices. In its results presentation, it said, "The positive effects of the weaker yen, higher sales volume and improved selling prices were not enough to offset negative factors, including higher costs."
In the first half, sales in the construction, mining and utility equipment segment rose 14.8% to ¥1.9996 trillion, while segment profit increased 1.0% to ¥244.5 billion. The figures show sales growing much faster than segment profit, as the company cited cost pressures on profitability in the second quarter. The Americas stood out among the growth regions: equipment sales to external customers there rose 28.7% to about ¥1.028 trillion. The increase included North America, where sales grew 24.8%, and Latin America, which posted growth of 33.9%. This regional performance supports the company's rationale for raising its forecast, alongside the continuing impact of the weaker yen on reported results.
In North America, Komatsu said sales benefited from steady demand, particularly from the infrastructure and rental sectors, as well as higher mining equipment sales and the impact of the weaker yen. In Latin America, higher mining equipment sales amid steady copper demand supported sales. These drivers show that both construction and mining equipment contributed to regional growth, rather than the increase relying on a single market or activity. In another segment, sales of industrial machinery and others rose 7.1% in the first half to ¥114.5 billion, and its profit increased 27.0% to ¥21.1 billion. The company attributed the segment's improvement to higher sales of maintenance services for the semiconductor industry, despite lower sales to the automotive industry.
Komatsu said its policy aims to maintain a consolidated payout ratio of at least 40%, while taking into account results, investment plans and cash flows. The company said this minimum is part of its dividend policy, while dividend decisions remain dependent on its financial position and investment plans. In the stock market, Komatsu's shares, listed under the ticker KMTUY, closed at $43.05 on October 28, 2026. The company scheduled the announcement of its fiscal 2026 third-quarter results for late January 2027. The report will provide the next update on demand and costs following the annual forecast revision.