Komatsu Forecasts 27% Profit Decline Amid Tariff Uncertainty

Komatsu Ltd., Japan’s top construction machinery maker, forecast a 27% drop in operating profit for the current fiscal year, citing a stronger yen and higher costs tied to new U.S. tariffs, Kantaro Komiya reported for Reuters.

Komatsu’s 2024/25 results surpassed analysts' average expectations of 605.7 billion yen. I Photo: Komatsu

The company expects operating profit of 478 billion yen ($3.33 billion) for the business year ending March 2026, down from 657.1 billion yen in the prior year, which marked an 8.2% gain.

Komatsu’s 2024/25 results surpassed analysts' average expectations of 605.7 billion yen, according to LSEG data, with revenues at 4.1 trillion yen and net income of 439.6 billion yen.

Komatsu, the world's second-largest heavy equipment maker after Caterpillar, earns more than a quarter of its revenue from North America, leaving it particularly vulnerable to the effects of President Donald Trump’s trade policies.

The company also announced plans to repurchase up to 4.3% of its shares, valued at 100 billion yen, and to cancel them.