Komatsu raises full-year profit forecast; shares close 7.6% lower in Tokyo

Komatsu lifted its projections for the year ending 31 March 2027, which it calls fiscal 2026, on 29 October 2026, according to its results presentation. It now expects operating income of JPY 585.0bn, JPY 30.0bn above its July projection of JPY 555.0bn, and net sales of JPY 4,450.0bn, JPY 148.0bn more than the JPY 4,302.0bn projected in July and up 7.7% on the previous year. Net income attributable to Komatsu is now seen at JPY 382.0bn, up JPY 33.0bn from JPY 349.0bn in July. The projected operating income ratio is 13.1%, above the 12.9% in the July projection but 0.6 percentage points lower than the previous year.

The new forecast assumes JPY 150 to the US dollar from the third quarter, and the dividend forecast stays at JPY 190 a share for the year.

In the July-September quarter, net sales rose 13.6% year on year to JPY 1,115.5bn, but operating income fell 1.2% to JPY 135.1bn and the operating income ratio dropped 1.8 percentage points to 12.1%. Net income attributable to Komatsu rose 13.3% to JPY 95.8bn. Segment profit in Construction, Mining & Utility Equipment, which booked JPY 1,032.6bn of sales in the quarter, fell 4.5% to JPY 114.3bn. Komatsu said rising costs and other negative factors more than cancelled out the benefit of the weaker yen, higher volumes and better selling prices. The segment's sales to outside customers grew 14.9%, or 5.9% excluding exchange-rate effects.

Over the six months to 30 September 2026, net sales rose 14.1% to JPY 2,158.6bn and operating income 3.5% to JPY 286.6bn, according to the company's interim results statement under US accounting standards. In the presentation's year-on-year bridges for the equipment segment's profit, US tariffs were a JPY 39.7bn negative in the half and are projected as a JPY 44.8bn negative for the full year, against IEEPA tariff refunds of JPY 12.8bn and JPY 27.0bn. Industrial Machinery & Others lifted second-quarter segment profit 28.4% to JPY 12.1bn, which Komatsu put down mainly to more high-margin maintenance work for semiconductor customers.

Komatsu shares closed the regular Tokyo session at JPY 6,300 at 15:30 JST (07:30 CET) on 29 October 2026, down JPY 515, or 7.56%, from the previous close of JPY 6,815, according to Kabutan. Komatsu published its results at 14:30 JST (06:30 CET), during the afternoon session. The stock had opened at JPY 6,715 and reached a high of JPY 6,827 at 14:09 JST (06:09 CET). Its low for the day, JPY 6,201, came at 15:18 JST (07:18 CET), 9.0% below the previous close by Polstob's calculation.

The raised operating income forecast was below a market consensus of JPY 605.9bn, Traders Web reported, adding that selling took hold after the release. Kabutan, carrying a Minkabu Press report, put the consensus for net income at about JPY 395bn and said the shortfall appeared to prompt disappointment selling.