Komatsu Ltd S/Adr (KMTUY) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Horikoshi, the CFO. I'll explain the overview of Komatsu's business results for Fiscal 25 Q2. Page 4 shows highlights for the three months ended September 30, 2025. Exchange rates were 147.3 yen to the USD, 171.3 yen to the euro, and 96 yen to the Australian dollar. Compared with the same period last year, the yen appreciated against the dollar and Australian dollar while depreciating against the euro. Net sales decreased by 2.6% year-on-year to 982.1 billion yen. Operating income decreased by 6.7% to 136.7 billion yen. The operating income ratio was 13.9%, down 0.6 percentage points from the previous year. Net income attributable to Komatsu Limited decreased by 8.1% year-on-year to 84.5 billion. Page 5 presents the sales and segment profit of each business segment for Q2 on a 3-month basis. In the construction, mining, and utility equipment segment, net sales decreased by 4.1% year-on-year to 897.3 billion, while segment profit decreased by 11.8% to 119.7 billion yen. The segment profit ratio declined by 1.2 points to 13.3%. The retail finance segment recorded net sales of 30.5 billion, down 2.5% year-on-year, while segment profit increased by 4.9% to 7.5 billion. The industrial machinery and other segment achieved net sales of 63.5 billion yen, up 23.9% year-on-year, and segment profit increased approximately 3.3 times to 9.4 billion. I will explain the factors behind these changes in each segment later. Page 6 presents sales by region for the construction mining and utility equipment segment in the second quarter of fiscal 25. Net sales in the construction mining and utility equipment segment decreased by 4.1% year-on-year to 895 billion yen. In Asia, both mining and construction equipment sales declined due to falling coal prices and reduced public invest...