Komatsu Ltd S/Adr (KMTUY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Horikoshi, the CFO. I'll explain the summary of the financial results for Q1 fiscal 2025. Page 4 shows the highlights for the first three-month period of fiscal 2025. The exchange rates are 145.5 yen to the U.S. dollar, 162.5 yen to the euro, and 92.6 yen to the Australian dollar. Compared to the same period last year, the yen appreciated against the U.S. dollar, euro, and Australian dollar. Net sales decreased by 5.2% year-on-year to 909.5 billion yen and operating income decreased by 10.6% to 140.4 billion yen. The operating income ratio was down by 1 point to 15.4%. Net sales and operating income decreased respectively despite the promotion of price increases due to the appreciation of the yen year-over-year as well as the decrease in sales volume and increasing costs. The impact of additional tariffs imposed by the U.S. in Q1 on tariff costs was minimal. Net income decreased by 16.9% year-on-year to 91.2 billion yen. On page 5, I'll talk about segment sales and profits. Net sales in the construction, mining, and utility equipment segment decreased by 5.5% from the corresponding period a year ago to 844.9 billion yen. Segment profit decreased by 14.1% to 122.3 billion yen, and the segment profitability decreased by 1.4 points to 14.5%. Retail finance sales remained about flat year-on-year at 30.4 billion yen, while segment profit increased by 22.5% to 9.4 billion yen. Industrial machinery and other sales decreased by 4.6% year-on-year to 43.5 billion yen, while segment profit increased by 43.5% to 7.2 billion yen. I'll explain the factors behind the changes in each segment later. Page 6 shows the sales by region for the construction mining and utility equipment segment. Net sales in the segment decreased by 5.5% from the corresponding period a year ago to ...