Kubota CorporationTSE: 6326

Earnings release for the six months ended June 30, 2025

Aug 5, 2025 at 5:14 AM UTC · Issued by Kubota Corporation

FOR IMMEDIATE RELEASE August 5, 2025

Contact: IR Section Corporate Control Dept.

2-47, Shikitsuhigashi 1-chome, Naniwa-ku, Osaka 556-8601, Japan Phone: +81-6-6648-2645

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 [IFRS]

Kubota Corporation hereby reports its consolidated results for the six months ended June 30, 2025.

Consolidated Financial Highlights

Consolidated financial results for the six months ended June 30, 2025

Results of operations (Unit: millions of yen, except per share amounts)

	Six months ended June 30, 2025	Change (%)	Six months ended June 30, 2024	Change (%)
Revenue	¥ 1,454,933	(7.9)	¥ 1,579,599	3.9
Operating profit	¥ 143,028	(31.0)	¥ 207,344	12.3
Profit before income taxes	¥ 151,451	(30.1)	¥ 216,727	13.0
Profit for the period	¥ 117,380	(28.5)	¥ 164,058	17.1
Profit attributable to owners of the parent	¥ 92,479	(38.7)	¥ 150,804	17.1
Comprehensive (loss) income for the year	(¥ 19,007)	-	¥ 402,169	30.5
Earnings per share attributable to owners of the parent:
Basic	¥ 80.60		¥ 128.33
Diluted

Financial position (Unit: millions of yen)

	June 30, 2025	Dec. 31, 2024
Total assets	¥ 5,665,540	¥ 6,018,665
Total equity	¥ 2,652,903	¥ 2,739,766
Equity attributable to owners of the parent	¥ 2,400,442	¥ 2,477,314
Ratio of equity attributable to owners of the parent to total assets	42.4%	41.2%

Notes:

1. Change (%) represents the percentage change from the same period in the prior year. 2 Amounts less than one million yen are rounded.

Cash dividends

(Unit: yen)

	Cash dividends per common share
	Interim	Year-end	Total
Year ending Dec. 31, 2025	¥ 25.00	¥ 25.00 (forecast)	¥ 50.00 (forecast)
Year ended Dec. 31, 2024	¥ 25.00	¥ 25.00	¥ 50.00

Note:

Revisions to the forecast of cash dividends since the latest announcement: None

Kubota Corporation and Its Subsidiaries

Forecasts of operations for the year ending December 31, 2025

(Unit: millions of yen, except per share amounts)

	Year ending Dec. 31, 2025	Change (%)
Revenue	¥ 2,880,000	(4.5)
Operating profit	¥ 220,000	(30.3)
Profit before income taxes	¥ 236,000	(29.6)
Profit attributable to owners of the parent	¥ 142,000	(38.4)
Earnings per share attributable to owners of the parent - basic	¥ 124.32

Notes:

Change (%) represents the percentage change from the prior year.
Please refer to the accompanying materials, "1. Review of operations and financial results (3) Forecasts for the year ending December 31, 2025" on page 6 for further information related to the forecasts of operations.

Other information

Changes in significant subsidiaries during the six months ended June 30, 2025 (changes in specified subsidiaries in the changes in scope of consolidation): None
Changes in accounting policies and changes in accounting estimates
1. Changes in accounting policies required by International Financial Reporting Standards (hereinafter
  IFRS
  ): None
2. Changes in accounting policies due to reasons other than a) above: None
3. Changes in accounting estimates: None

Number of common shares issued

:	1,150,896,846
:	1,150,896,846
:	13,831,408
:	1,486,694
:	1,147,390,025
:	1,175,082,182

Number of common shares issued including treasury shares as of June 30, 2025 Number of common shares issued including treasury shares as of December 31, 2024
Number of treasury shares as of June 30, 2025 Number of treasury shares as of December 31, 2024
Weighted-average number of common shares outstanding during the six months ended June 30, 2025 Weighted-average number of common shares outstanding during the six months ended June 30, 2024

Information on the status of the quarterly review by the independent auditor

This release is not subject to the quarterly review by the independent auditor.

Method of obtaining supplementary materials on the financial results

Kubota Corporation plans to hold a result briefing for institutional investors and securities analysts on August 5, 2025. The supplementary material will be published on the Company s website on the same day.

< Cautionary statements with respect to forward-looking statements >

This document may contain forward-

sumptions.

These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore,

actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company's markets, particularly government agricultural policies, levels of capital expenditures both in public and private sectors, foreign currency exchange rates, the occurrence of natural disasters, continued competitive pricing pressures in the marketplace, as well as the Company's ability to continue to gain acceptance of its products.

Kubota Corporation and Its Subsidiaries

Index to Accompanying Materials

Review of operations and financial results

(1) Summary of the results of operations for the six-month period

(2) Financial position

........

(3) Forecasts for the year ending December 31, 2025

2. Other information

...............

(1) Changes in significant subsidiaries

(2) Changes in accounting policies

3. Condensed consolidated financial statements

Condensed consolidated statement of financial position
7
Condensed consolidated statement of profit or loss
9
Condensed consolidated statement of comprehensive income
10
Condensed consolidated statement of changes in equity 11
Condensed consolidated statement of cash flows
12
Significant matters serving as the basis for condensed consolidated financial statements preparation 12
Notes to the going concern assumption 12
Consolidated segment information
13
Consolidated revenue by product group
14

Review of operations and financial results
Kubota Corporation and Its Subsidiaries
Effective from the beginning of this current consolidated fiscal year, Kubota Corporation changed the business reporting structure due to the organizational reform, which was implemented on January 1, 2025. Consequently, certain corporate expenses that were formerly included in the "Adjustment" have been included in each business segment. To reflect this change in this Earnings release, year-on-year comparisons are calculated based on the figures after the reclassification.
1. Summary of the results of operations for the six-month period
  For the six months ended June 30, 2025, revenue of Kubota Corporation and its subsidiaries (hereinafter, the "Company") decreased by ¥124.7 billion (7.9%) from the same period in the prior year to ¥1,454.9 billion.
  Domestic revenue increased by ¥26.6 billion (8.7%) from the same period in the prior year to ¥332.3 billion because of increased revenue from Farm & Industrial Machinery and Water & Environment.
  Overseas revenue decreased by ¥151.3 billion (11.9%) from the same period in the prior year to ¥1,122.6 billion because of decreased revenue from Farm & Industrial Machinery.
  Operating profit decreased by ¥64.3 billion (31.0%) from the same period in the prior year to ¥143.0 billion mainly due to decreased sales in mostly North America of Farm & Industrial Machinery and an increase in net foreign exchange losses. Profit before income taxes decreased by ¥65.3 billion (30.1%) from the same period in the prior year to ¥151.5 billion. Profit for the period decreased by ¥46.7 billion (28.5%) to ¥117.4 billion, reflecting income tax expenses of ¥34.8 billion and share of profits of investments accounted for using the equity method of ¥0.7 billion. Profit attributable to owners of the parent decreased by ¥58.3 billion (38.7%) from the same period in the prior year to ¥92.5 billion.
  Revenue from external customers and operating profit by each reportable segment were as follows:
  1. Farm & Industrial Machinery
    Farm & Industrial Machinery is composed of farm equipment, agricultural-related products, engines, and construction machinery.
    Revenue in this segment decreased by 9.7% from the same period in the prior year to ¥1,267.4 billion, which accounted for 87.1% of consolidated revenue.
    Domestic revenue increased by 12.1% from the same period in the prior year to ¥174.1 billion mainly due to increased sales of farm equipment and agricultural-related products.
    Overseas revenue decreased by 12.4% from the same period in the prior year to ¥1,093.3 billion. In North America, the sales of CE decreased because of a backlash of the inventory replenishment in the previous year and the sales of tractor also decreased due to a slowdown in both the residential and the agricultural market. In Europe, although the sales decreased due to the market shrinkage, the degree of the shrinkage is easing and the CE market has begun to bottom out. In Thailand, the sales decreased due to the shrinkage of the dryland market caused by the crop price decline although the sales in the rice market were steady. In India, the sales of tractor increased thanks to the sufficient crop yields and water storage.
    Operating profit in this segment decreased by 27.6% from the same period in the prior year to ¥148.3 billion mainly due to the losses caused by sales decrease mainly in North America and an increase in net foreign exchange losses.
    Kubota Corporation and Its Subsidiaries
  2. Water & Environment
    Water & Environment is composed of pipe system business (ductile iron pipes, plastic pipes, and other products), industrial products business (reformer and cracking tubes, spiral-welded steel pipes, air-conditioning equipment, and other products), and environment business (environmental control plants, pumps, and other products).
    Revenue in this segment increased by 7.2% from the same period in the prior year to ¥179.6 billion, which accounted for 12.3% of consolidated revenue.
    Domestic revenue increased by 5.9% from the same period in the prior year to ¥150.3 billion due to increased sales mainly in environment business and industrial products business.
    Overseas revenue increased by 14.0% from the same period in the prior year to ¥29.3 billion due to increased sales in industrial products business mainly.
    Operating profit in this segment increased by 78.8% from the same period in the prior year to ¥19.2 billion due to sales price increase and sales increase.
  3. Other
  Other is mainly composed of a variety of other services.
  Revenue in this segment decreased by 7.0% from the same period in the prior year to ¥8.0 billion and accounted for 0.6% of consolidated revenue.
  Operating profit in this segment decreased by 38.5% from the same period in the prior year to ¥0.6 billion.
2. Financial position
  1. Assets, liabilities, and equity
    Total assets as of June 30, 2025, were ¥5,665.5 billion, a decrease of ¥353.1 billion from the prior fiscal year-end.
    Assets decreased due to a decrease in cash and cash equivalents mainly.
    Total liabilities also decreased from the prior fiscal year-end due to a decrease in bonds and borrowings mainly. Equity decreased due to a decrease in other components of equity because of the fluctuations mainly in foreign exchange rates.
    The ratio of equity attributable to owners of the parent to total assets stood at 42.4%, 1.2 percentage points higher than the prior fiscal year-end.
  2. Cash flows

Net cash provided by operating activities during the six months ended June 30, 2025, was ¥142.8 billion, an

increase of ¥13.4 billion in net cash inflow compared with the same period in the prior year. This increase resulted mainly from a decrease in working capital and finance receivables, although the profit for the period decreased.

Net cash used in investing activities was ¥80.0 billion, a decrease of ¥45.9 billion in net cash outflow compared with the same period in the prior year. This resulted mainly from a decrease in expenditures related to acquisition and sales of property, plant, and equipment, and a decrease in the expenditure for acquisition of intangible assets.

Net cash used by financing activities was ¥142.9 billion, a decrease of ¥189.7 billion in net cash inflow compared with the same period in the prior year mostly due to an increase in repayments of bonds and borrowings and a decrease in funding.

As a result of the above and after taking into account the effects of exchange rate changes, cash and cash equivalents as of June 30, 2025, were ¥200.9 billion, a decrease of ¥94.3 billion from the beginning of the current period.