Currency, price and volume all pulled the same way
Komatsu Ltd. (TSE: 6301) published consolidated first-quarter results for FY3/2027 on July 29, 2026, covering April 1 to June 30, 2026 under U.S. GAAP. Net sales rose 14.7% to ¥1,043,143 million, operating profit 8.0% to ¥151,553 million, pre-tax profit 6.7% to ¥140,036 million and net profit attributable to Komatsu 5.4% to ¥96,153 million. Earnings per share reached ¥107.20 against ¥99.08.
The yen did much of the lifting. The quarter was translated at ¥158.5 to the dollar against ¥145.5 a year earlier, ¥184.6 to the euro against ¥162.5 and ¥112.6 to the Australian dollar against ¥92.6. Management attributes the sales increase in construction and mining equipment to that translation effect plus price improvement and higher volume; on the cost side, rising expenses meant the operating margin narrowed 0.9 points to 14.5% even as profit grew.
The Americas boom, the Middle East collapses
Construction and mining equipment lifted revenue 14.4% to ¥966,934 million and segment profit 6.4% to ¥130,123 million. Within it the regional spread was extreme. The Americas rose 32.7% to ¥504,602 million — North America up 29.5% on infrastructure and rental demand plus mining, Latin America up 37.2% as copper demand kept Chilean mining equipment moving. Africa gained 31.6% on gold and infrastructure work.
Against that, Middle East sales fell 54.6% to ¥11,212 million as regional conflict cut both general construction and mining machine sales, and Asia dropped 29.6% to ¥70,036 million after Indonesian coal-output limits sapped mining demand. Japan fell 12.0% to ¥60,035 million, with general-user and rental demand still depressed by labour shortages and higher material and personnel costs. Oceania, Asia and the CIS together were down 3.2%; Europe, Africa and the Middle East together still managed 8.4% growth.
The two smaller segments both improved. Retail Finance lifted revenue 7.4% to ¥32,695 million and profit 2.8% to ¥9,624 million on a weaker yen and a larger asset base. Industrial Machinery and Others grew revenue 21.7% to ¥52,895 million and profit 25.1% to ¥9,010 million on higher sales of large presses to the automotive industry and more excimer-laser maintenance work for semiconductor customers.
Digitisation keeps advancing
Komatsu reported an ICT-equipped machine ratio of 31.1% across Japan, the United States, Europe and Australia, and said cumulative deployments of its autonomous haulage system reached 1,060 trucks by the end of June. In June it launched two software-defined 13-tonne short-tail-swing excavators with 3D machine guidance as standard, and a remote-operation package for its 20-tonne class, while its Smart Construction platform went into full use on Singapore's Changi Airport Terminal 5 project.
Guidance lifted on smaller tariff and Middle East hits
Komatsu raised the full-year plan it published on April 28. Net sales go to ¥4,302,000 million from ¥4,118,000 million (+4.5%), operating profit to ¥555,000 million from ¥508,000 million (+9.3%), pre-tax profit to ¥508,000 million from ¥466,000 million (+9.0%) and net profit to ¥349,000 million from ¥318,000 million (+9.7%), lifting forecast earnings per share to ¥390.87 from ¥352.90. Management cited a smaller-than-assumed demand hit from the Middle East situation, a reduced US tariff impact after tariff-rate changes, and the latest market outlook. The exchange-rate assumption for the second to fourth quarters is unchanged at ¥150.0 per dollar, but the first quarter's weaker yen lifts the full-year average to ¥152.1.
Even after the upgrade the year is planned below the last: FY3/2026 delivered ¥4,132,751 million of sales, ¥567,323 million of operating profit and ¥376,391 million of net profit, so the new guidance implies a 2.2% profit decline. Total assets rose 5.6% to ¥6,782,589 million while shareholders' equity was flat, pushing the equity ratio down 2.9 points to 51.8%. The annual dividend forecast is unchanged at ¥190.00 per share.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 1,043,143 | 909,524 | +14.7% |
| Operating profit (¥ million) | 151,553 | 140,391 | +8.0% |
| Operating margin | 14.5% | 15.4% | −0.9 pt |
| Pre-tax profit (¥ million) | 140,036 | 131,295 | +6.7% |
| Net profit attrib. to owners of parent (¥ million) | 96,153 | 91,194 | +5.4% |
| Comprehensive income (¥ million) | 158,515 | 64,336 | +146.4% |
| EPS (¥) | 107.20 | 99.08 | +8.2% |
| Construction & Mining Equipment — revenue (¥ million) | 966,934 | 844,911 | +14.4% |
| Construction & Mining Equipment — segment profit (¥ million) | 130,123 | 122,250 | +6.4% |
| Retail Finance — revenue (¥ million) | 32,695 | 30,444 | +7.4% |
| Retail Finance — segment profit (¥ million) | 9,624 | 9,364 | +2.8% |
| Industrial Machinery & Others — revenue (¥ million) | 52,895 | 43,453 | +21.7% |
| Industrial Machinery & Others — segment profit (¥ million) | 9,010 | 7,203 | +25.1% |
| Equipment sales — Americas (¥ million) | 504,602 | 380,342 | +32.7% |
| Equipment sales — Europe, Africa & Middle East (¥ million) | 180,198 | 166,228 | +8.4% |
| Equipment sales — Oceania, Asia & CIS (¥ million) | 220,202 | 227,458 | −3.2% |
| Equipment sales — Japan (¥ million) | 60,035 | 68,232 | −12.0% |
| Total assets (¥ million) | 6,782,589 | 6,423,941 | +5.6% |
| Shareholders' equity (¥ million) | 3,515,432 | 3,510,768 | +0.1% |
| Equity ratio | 51.8% | 54.7% | −2.9 pt |
| FY3/2027 guidance — revenue (¥ million) | 4,302,000 | — | +4.1% |
| FY3/2027 guidance — operating profit (¥ million) | 555,000 | — | −2.2% |
| FY3/2027 guidance — pre-tax profit (¥ million) | 508,000 | — | −5.4% |
| FY3/2027 guidance — net profit (¥ million) | 349,000 | — | −7.3% |
| FY3/2027 guidance — EPS (¥) | 390.87 | 413.90 | −5.6% |
| Annual dividend per share (¥) | 190.00 | 190.00 | unchanged |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.