Fiscal Year Ending March 2026 Financial Summary [US GAAP] (Consolidated)

Overview of Business Results

Consolidated net sales for the fiscal year ending March 2026 were 4.1328 trillion yen (up 0.7% YoY). The Construction Machinery and Vehicles segment experienced increased net sales due to improved selling prices despite a decline in sales volume. The Industrial Machinery and Other segment also saw higher net sales due to increased sales of large presses. Meanwhile, operating income was 567.3 billion yen (down 13.7% YoY), impacted by higher costs and decreased sales volume in the Construction Machinery and Vehicles segment. Income before income taxes was 537.3 billion yen (down 11.2% YoY), and net income attributable to owners of the parent was 376.4 billion yen (down 14.4% YoY).

Financial Position and Dividends

Total assets increased to 6.424 trillion yen compared to the prior year due to foreign exchange fluctuations and an increase in accounts receivable. Shareholders’ equity was 3.511 trillion yen, resulting in a shareholders’ equity ratio of 54.7%. Net cash provided by operating activities was 449.0 billion yen. The annual dividend remained unchanged at 190 yen per share, with a consolidated payout ratio of 45.9%. For the fiscal year ending March 2027, dividends are planned at the same level with an expected payout ratio of 53.8%.

Treasury Stock Acquisition and Cancellation

At the board meeting held on April 28, 2026, a resolution was passed to acquire treasury stock with an upper limit of 25,000,000 shares and an acquisition cost ceiling of 100 billion yen, as well as to cancel acquired shares. The acquisition period is from April 30, 2026, to September 30, 2026, and the planned cancellation date is October 30, 2026. These measures are implemented from the perspectives of capital efficiency and shareholder returns, with all acquired treasury stock scheduled for cancellation.

Earnings Outlook for Fiscal Year Ending March 2027

For the fiscal year ending March 2027, Komatsu projects net sales of 4.118 trillion yen (down 0.4% YoY), operating income of 508.0 billion yen (down 10.5% YoY), and net income attributable to owners of the parent of 318.0 billion yen (down 15.5% YoY). The Construction Machinery and Vehicles segment anticipates sales price improvements but expects declines in revenue and profit due to reduced demand and rising costs. The Retail Finance segment is forecasted to have increased revenue but decreased profit, while the Industrial Machinery and Other segment is also expected to see increased revenue and decreased profit.