Komatsu Ltd S/Adr (KMTUY) Q4 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

I am Hiroshi Hosotani, CFO. I will now provide an overview of the business results for the fiscal year 2025. Page 4 shows the highlights of business results for fiscal 25. Foreign exchange rates were 150.5 yen to the US dollar, 173.8 yen to the euro, and 99.2 yen to the Australian dollar. Compared to the previous fiscal year, the Japanese yen appreciated against the US dollar and Australian dollar, but depreciated against the euro. Net sales increased by 0.7% to 4 trillion 132.8 billion yen. Operating income decreased by 13.7% to 567.3 billion. The operating income ratio was 13.7% down 2.3 points. Net income attributable to Komatsu decreased by 14.4% to $376.4 billion. Net sales reached a record high for the fifth consecutive year. ROE was 11.3%, down 2.9 points from the previous year. we plan to pay an annual cash dividend of 190 yen per share, the same as the previous year, resulting in a consolidated payout ratio of 45.9%. Page 5 shows segment sales and profits for fiscal 25. Net sales in the construction mining and utility equipment segment increased by 0.2% to 3,806,000,000. Sales exceeded the projection announced in October as demand was higher than expected. Segment profit decreased by 18% to 491.1 billion yen. The segment profit ratio was 12.9%, down 2.9 points. Retail finance sales increased by 2.4% to 126.1 billion yen. Segment profit increased by 24.4% to 36.6 billion yen. Industrial machinery and other sales increased by 6.8% to 238.8 billion yen. Segment profit increased by 38.5% to 37.9 billion. I will 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 for fiscal 25. Sales to outside customers for the segment increased by 0.2% to $3,796.1 billion. Det...