Komatsu (6301) investor relations material

Executive summary

• Net sales for FY2025 rose 0.7% year-over-year to JPY 4,132.8 billion, marking a record high for the fifth consecutive year, driven by improved selling prices despite lower volumes.

• Operating income declined 13.7% to JPY 567.3 billion, with the operating income ratio falling 2.3 points to 13.7%.

• Net income attributable to shareholders declined 14.4% to JPY 376.4 billion; ROE dropped to 11.3%.

• Comprehensive income surged 55.0% to JPY 670.4 billion, mainly from favorable foreign currency translation.

• FY2026 outlook projects a 0.4% decrease in net sales and a 10.5% drop in operating income.

Financial highlights

• Free cash flow was JPY 249.7 billion, down JPY 56.8 billion from the previous year.

• Shareholders' equity ratio at 54.7%, net D/E ratio at 0.26 times.

• Cash and cash equivalents at year-end were JPY 439.7 billion, up JPY 54.1 billion year-over-year.

• Net cash from operating activities was JPY 449.0 billion, down JPY 68.2 billion from the previous year.

• Basic EPS was JPY 413.90, down from JPY 473.44.

Outlook and guidance

• FY2026 net sales projected at JPY 4,118 billion, a 0.4% decrease year-over-year; operating income forecasted to decline 10.5% to JPY 508 billion; net income to fall 15.5% to JPY 318 billion.

• ROE expected at 9.1%; dividend per share to remain at JPY 190, with a projected payout ratio of 53.8%.

• Segment profits are forecast to decline across all major business lines due to rising costs, lower demand in some regions, and higher fixed expenses.

• Share buyback of up to JPY 100 billion or 25 million shares approved, with all repurchased shares to be cancelled.