Record Komatsu Sales Jump 13.6%, While EPS Misses Estimates
Key Facts
Komatsu posted record sales of ¥1,115.5 billion in the second quarter of fiscal 2026, up 13.6% year over year, but core earnings per share fell short of analysts’ estimate. EPS was ¥107.86 for the three months ended September 30, compared with an estimate of ¥113.75, a 5.18% miss, according to Investing.com. The results showed a divergence between revenue growth and pressure on operating earnings, as the company announced on October 29 that it had raised its outlook for the fiscal year ending March 31, 2027. After the results were announced, the company’s Tokyo-listed shares fell 9.29% to ¥6,182, according to Investing.com. KMTUY shares also closed at $38.87 on October 30, according to EL7 data.
Quarterly sales topped the ¥982.1 billion recorded in the corresponding period of the previous fiscal year, adding ¥133.4 billion to revenue. By contrast, operating income fell 1.2% to ¥135.1 billion, and its margin declined 1.8 percentage points to 12.1%, according to Komatsu’s results presentation. Net income attributable to the company rose 13.3% year over year to ¥95.8 billion, painting a different picture from the declines in operating income and EPS below estimates. In the Construction, Mining and Utility Equipment segment, first-half profit rose 1.0% to ¥244.5 billion, but fell 4.5% to ¥114.3 billion in the second quarter alone. The divergence in the main segment’s performance was therefore between the first-half total and the latest quarter.
Komatsu attributed the decline in profit in its Construction, Mining and Utility Equipment segment to higher costs outweighing the benefits of the weaker yen, higher sales volume and improved selling prices. The company said the projected tariff impact for fiscal 2026 includes gross costs of ¥44.8 billion and recoveries of ¥27 billion, resulting in a net negative impact of ¥17.7 billion. These figures put the burden from costs and tariffs alongside revenue growth in assessing the quarter’s results. In North America, demand for the company’s seven main equipment categories rose 14% year over year in the second quarter. Komatsu said data center investment is supporting demand in the rental sector, and that demand from the mining and energy sectors remains firm.
Komatsu raised its fiscal 2026 sales forecast to ¥4,450 billion, up ¥148 billion from its July estimate, and expects the figure to rise 7.7% year over year. It also raised its operating income forecast to ¥585 billion, up ¥30 billion from the previous estimate, with expected annual growth of 3.1%. The company lifted its forecast for net income attributable to the company to ¥382 billion, up ¥33 billion from the July estimate, with expected annual growth of 1.5%. The company expects North American demand to grow between 5% and 10% year over year during the fiscal year. Komatsu scheduled the release of its fiscal 2026 third-quarter results for late January 2027.
Komatsu announced an interim dividend of ¥95 per share at the end of the second quarter, in line with its dividend forecast published on April 28, 2026. It said its forecasts for the year-end dividend and total annual dividends were unchanged from the previous estimate. The dividend decision comes alongside the company’s raised forecasts for fiscal-year sales, operating income and net income, despite the decline in the second-quarter operating margin. The next disclosure listed on the investor relations calendar is scheduled for late January 2027. The company plans to announce its fiscal 2026 third-quarter results then.