KOMATSU LTD.
6301・Prime Market・Machinery
Business
Komatsu, founded in 1921, is a global leading manufacturer of construction and mining equipment. The company offers a wide range of products, from construction equipment such as hydraulic excavators, bulldozers, and dump trucks to mining equipment such as underground mining machinery and surface mining machinery, as well as forestry equipment and industrial machinery. It is a global enterprise with 211 consolidated subsidiaries and 39 equity-method affiliates, with overseas sales accounting for approximately 90% of total revenue. The Construction Equipment & Vehicles segment is the core business, accounting for approximately 92% of consolidated net sales, and the company is composed of three segments: Retail Finance, and Industrial Machinery & Others. Major customers include construction companies, mining companies, and infrastructure operators, with the company operating extensively across the Americas, Europe, Asia, Oceania, and other regions.
Business Model
Komatsu's revenue model is a hybrid model built on the manufacturing and sale of construction and mining equipment, combined with digital solutions such as KOMTRAX (operation management), Smart Construction, and AHS (Autonomous Haulage System), aftermarket services such as the Remanufacturing Business, and captive finance (Retail Finance business) linked to equipment sales. Expanding "value-in-use" — earning continuous revenue even after the initial equipment sale — is positioned as a core pillar of the medium-term management plan.
Company Strengths
Achieved 827,286 units connected via KOMTRAX, 1,016 cumulative units in operation for AHS (Autonomous Haulage System) (as of end of March 2026), and an ICT construction equipment penetration rate of 28.7% (Japan, US, Europe, Australia). The company has commercially deployed Smart Construction® and automation systems for mining, giving it a track record-based digital platform that competitors cannot easily replicate in a short period.
In FY2025, overseas sales were ¥3,708,168 million, accounting for approximately 90% of consolidated net sales, diversified across the Americas, Europe, Africa, Oceania, and other regions. Sluggish demand in Asia and China (Asia down 32.9% year on year) was offset by the Americas (up 6.7% year on year) and Europe, Africa and the Middle East (up 10.3% year on year), enabling overall net sales to increase 0.7% year on year.
R&D expenses in FY2025 were ¥121,177 million (up 9.7% year on year). The company has built up concrete achievements in technology development in the areas of electrification and automation, including the market introduction of electric mini excavators and electric hydraulic excavators, the start of demonstration testing of power-agnostic dump trucks, and collaboration with Applied Intuition on next-generation SDV architecture.
ENVALITH's Perspective
Performance Trend
Revenue maintained a growth trend, rising from ¥2,802,323 million in FY2022 to ¥3,543,475 million in FY2023, ¥3,865,122 million in FY2024, ¥4,104,395 million in FY2025, and ¥4,132,751 million in FY2026 (up 0.7% year on year in FY2026). On the other hand, operating profit fell to ¥567,323 million in FY2026 (down 13.7% year on year), and profit attributable to owners of the parent declined to ¥376,391 million (down 14.4% year on year), marking the first profit decline in two periods. External factors included a sharp drop in mining equipment demand due to the slump in Indonesian coal prices (Asia sales down 32.9%) and the downturn in the Chinese real estate market as the main causes. Despite efforts to improve selling prices, rising costs and declining sales volume squeezed profits, pushing the operating profit margin down 2.3 points from 16.0% in the previous period to 13.7%. For FY2027 (ending March 2027), both revenue and profit are forecast to decline (revenue of ¥4,118,000 million and operating profit of ¥508,000 million).
Growth Strategy
Pursuing the three pillars of innovation, growth, and management foundation reform under the new medium-term management plan "Driving value with ambition"
Achieved an ICT construction equipment ratio of 28.7% (Japan, US, Europe, Australia) and cumulative AHS (Autonomous Haulage System) shipments of 1,016 units. Strengthening the stable revenue base after machinery sales by continuing to expand Smart Construction® and expanding value-added services (service and data revenue).
Promoting the capture of demand for Construction Equipment (General) in the Americas, Europe, and Africa, and expanding sales of Mining Equipment in Latin America. Declining demand in Asia (Indonesia) due to weak coal prices is a challenge, making regional diversification and improvement of the product mix an urgent priority.
Strengthening the aftermarket and new product domains through the acquisition of SRC of Lexington (Remanufacturing Business, acquired February 2026) and Malwa Forest (Forestry Equipment, acquisition completed April 2026). Aiming to stabilize parts and service revenue.
Maintaining an annual dividend of ¥190 (the same amount forecast for both FY2026 (ending March 2026) and FY2027 (ending March 2027)), with a dividend payout ratio of 45.9% (FY2026, ending March 2026). In April 2026, resolved to conduct share buybacks and cancellations of up to ¥100.0 billion and 25 million shares, pursuing both improved capital efficiency and enhanced shareholder returns.
Planning to transition from the current US GAAP to IFRS from FY2029 (ending March 2029). The aim is to improve the international comparability of financial information in capital markets and enhance accessibility for global investors.
Last updated: July 19, 2026