Komatsu H1 FY2027 Results: Revenue Up 14.1%, Construction Machinery 'Higher Sal
November 10,2026
On October 29, Komatsu officially released its complete H1 FY2027 operating data (April 1 to September 30, 2026, i.e., the second-quarter consolidated results for the fiscal year ending March 2027, under U.S. GAAP). Driven by the weaker yen, a recovery in equipment sales volumes across most overseas regions, and improved product pricing, the company achieved year-on-year growth in both revenue and profit in the first half (note: sales in the China market grew 8.9% year-on-year). Based on actual market demand performance, Komatsu also raised its full-year FY2027 earnings forecast.
Overall Consolidated Results: Double-Digit Revenue Growth, Slight Margin Decline
Financial data shows that Komatsu's first-half consolidated sales reached 2,158.6 billion yen (about 91.309 billion yuan, at 1 yen = 0.0423 yuan; exchange rate for media reference only, not official reporting basis), up 14.1% year-on-year from 1,891.6 billion yen in the same period last year; operating profit was 286.6 billion yen, up 3.5% year-on-year; operating margin was 13.3%, down 1.3 percentage points from 14.6% a year earlier, mainly affected by rising costs. Pre-tax interim net profit was 271.0 billion yen, up 4.9% year-on-year; net profit attributable to parent-company shareholders was 191.9 billion yen, up 9.2% year-on-year; basic EPS was 215.06 yen.
In terms of cash flow, net cash from operating activities was 139.3 billion yen, up 11.7 billion yen year-on-year; net cash from investing activities was -119.0 billion yen due to increased equipment and fixed-asset purchases; combined with share buybacks and dividend payments, the period-end balance of cash and cash equivalents was 381.3 billion yen, down from the beginning of the period. As of end-September 2026, Komatsu's consolidated total assets reached 6,527.2 billion yen, with an equity capital ratio of 53.2%, maintaining a sound financial structure.
Business Segments Diverge: Construction Machinery Leads Growth, Industrial Machinery Profit Surges
1. Construction Machinery & Vehicles (core construction equipment segment)
This segment achieved first-half sales of 1,999.6 billion yen, up 14.8% year-on-year; segment profit was 244.5 billion yen, up 1.0% year-on-year, with cost increases partly eroding profit gains. On the technology front, smart construction continued to advance: the ICT construction machinery penetration rate (ICT civil engineering mechanization rate) in Japan, the U.S., Europe and Australia rose to 30.1%; the mine autonomous haul truck transport system AHS had cumulative installations of 1,089 units as of end-September, continuously expanding mine automation deployment.
On technical cooperation, in July Komatsu reached a strategic partnership with U.S.-based AIM Intelligent Machines to jointly advance autonomous dozer and hydraulic excavator construction technology, linking the Smart Construction platform with autonomous driving technology to accelerate unmanned job-site deployment.
On the product front, multiple localized models were launched for emerging markets, including the 7-ton-class hydraulic excavator PC75-10M0 developed for Southeast Asia, and the PC200-11M2 and PC210-11M2 hydraulic excavators for emerging markets, improving the product matrix across regions.
2. Retail Finance Segment
Retail finance first-half sales were 65.4 billion yen, up 7.3% year-on-year; segment profit was 17.4 billion yen, up 2.9% year-on-year. Benefiting from yen exchange-rate movements and business asset expansion, financing-related business maintained steady growth.
3. Industrial Machinery and Other
Industrial machinery and other segment sales were 114.5 billion yen, up 7.1% year-on-year; segment profit was 21.1 billion yen, up 27.0% year-on-year. The growth mainly came from increased revenue related to the semiconductor industry, with forging and optical-related businesses contributing profit increments.
Global Regional Performance: Americas and Africa Grow Sharply, Middle East and Japan Under Pressure
From the regional statistics of external customer sales revenue, demand performance varied significantly across global regions:
Americas market: overall sales jumped 28.7% year-on-year. North America, boosted by infrastructure and rental equipment demand plus higher mining equipment sales, grew 24.8%; Central and South America, benefiting from strong copper-industry mining investment and released mining equipment demand, surged 33.9% year-on-year, with the weaker yen further amplifying revenue scale.
Europe, Africa, Middle East: overall sales up 10.8% year-on-year. Europe grew 11.3% on infrastructure investment; Africa, driven by gold mining and infrastructure projects, rose 31.7%; affected by the geopolitical situation, the Middle East saw construction and mining equipment demand decline, with sales down 37.2% year-on-year.
Oceania, Asia (ex-Japan), CIS: regional sales slightly down 0.8%. Oceania's mining equipment sales fell back but still grew 5.6% after hedging; other parts of Asia, affected by Indonesia's coal mining controls, saw demand decline with sales down 15.1% year-on-year; China's sales this half were 40.331 billion yen, up 8.9% year-on-year, with the increase mainly from mining equipment and key infrastructure orders, while real-estate-related engineering demand remained weak, showing a structurally divergent market. The CIS region grew 23.8% year-on-year.
Japan domestic market: constrained by rising labor costs, material prices and ongoing labor shortages, rental and end-user demand remained sluggish, with domestic sales down 3.9% year-on-year.
Raised Full-Year Forecast, Unchanged Exchange-Rate Assumptions
Based on stronger construction machinery demand across most global regions in the first half than previously estimated, combined with foreign-exchange gains from the actual yen depreciation, Komatsu revised upward its FY2027 (2026.4-2027.3) full-year forecast:
Consolidated sales raised from 4,302.0 billion yen to 4,450.0 billion yen, up 3.4%;
Operating profit raised from 555.0 billion yen to 585.0 billion yen, up 5.4%;
Pre-tax net profit raised to 548.0 billion yen; net profit attributable to parent-company shareholders raised to 382.0 billion yen, corresponding to expected EPS of 429.63 yen.
Second-half exchange-rate assumptions remain unchanged: 1 USD = 150.0 yen, 1 EUR = 174.0 yen, 1 AUD = 106.0 yen; the updated full-year average rate assumptions are 1 USD = 154.5 yen, 1 EUR = 179.1 yen, 1 AUD = 109.2 yen.
The financial report also disclosed that the company continues to advance its three-year medium-term management plan "Driving value with ambition," with three pillars of creating value through innovation, balancing growth and profitability, and reforming the management foundation, aiming to become "a solution partner that realizes safe, high-productivity, clean job sites," and continuously promoting the coordinated development of equipment hardware and digital construction service businesses.
The report cautioned that actual operating results will still be affected by multiple factors such as global macroeconomic conditions, construction machinery demand fluctuations, foreign exchange rates, and changes in laws and policies of various countries, and actual results may differ from forecasts.
Source : www.51cm.org
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