After showing little change in consolidated revenue and only a slight increase in construction equipment revenue in 2024, Kubota has reported a tough start to 2025 with declines in first-quarter profit and construction revenue.
Global construction machinery revenue in the first quarter was down 22.7% to $890 million, compared to $1.2 billion in Kubota’s previous first quarter.
Revenue from Kubota’s farm and industrial machinery division – which includes its farm equipment, construction equipment and engines businesses – was down 10.3% to $4.2 billion. North American sales fell within Kubota’s expectations, though the company said a drop in construction equipment sales was caused by last year’s inventory replenishment.
Kubota’s farm and industrial machinery global operating profit fell 38% in the first quarter to $428 million.
Kubota’s total first-quarter revenue, which includes revenue from its water and environment business, came in at $4.9 billion, down 8.1% year-over-year from $5.4 billion.
Total revenue from Kubota’s North American market came in at $1.9 billion, down 21% from $2.3 billion in last year’s first quarter.
Operating profit in the first quarter dropped 40.2% to $425.5 million from $711 in Kubota’s previous first quarter, which the company attributed mainly to decreased sales in its farm and industrial machinery business in North America. Total profit was also down, dropping 39.2% to $332.2 million.
For its full year 2025, Kubota forecasts total revenue to rise 1.1% to $21.1 billion and operating profit to fall 11.3% year-over-year to $1.9 billion. Profit before income taxes is forecast to drop 11.4% to $2.1 billion.
