Komatsu saw year-over-year increases in its construction, mining and utility equipment net sales and profit in its fiscal year 2024. However, the company forecasts net sales declines for 2025, including the impact of tariffs from President Donald Trump.
Komatsu reported $28.5 billion in net sales for its fiscal year 2024, up 6.2% from 2023 fiscal year. Net income for the year was up 9.6% year-over-year to $4.6 billion.
Net sales for Komatsu’s construction, mining and utility equipment division came in at $26.4 billion, a 5.1% year-over-year increase. Construction profit in the full year was up 4.3% to $4.2 billion.
Global sales volume of Komatsu’s construction, mining and utility equipment was down about $650 million year-over-year. This loss was mostly offset by a $620 million increase in total selling prices on new equipment.
In North America, Komatsu’s construction, mining and utility equipment division brought in $7.1 billion, a 3.4% year-over-year increase. Excluding the effects of foreign exchange rates, Komatsu’s North American construction net sales were down 2.3%.
Komatsu’s North America business made up 27% of its construction, mining and utility net sales in 2024, down from 28% in its previous fiscal year.
Komatsu’s Oceania region saw the largest year-over-year construction net sales increase in the company’s 2024 fiscal year, rising 24.2% to $3.2 billion.
For its fiscal year 2025, Komatsu forecasts construction, mining and utility equipment net sales to fall 9.4% to $23.9 billion. In North America, Komatsu is expecting to bring in $6.2 billion in construction, mining and utility equipment net sales, a 13.5% year-over-year decrease.
Total net sales are expected to decline 8.8% in fiscal year 2025 to just over $26 billion.
During the earnings call, Komatsu estimated that additional tariffs recently placed by the Trump administration on other countries, particularly China, Canada and Mexico, would generate an additional $550 million in costs during its fiscal year 2025. This figure estimates a $350 million loss of sales in the company’s construction, mining and utility equipment business.
