After reporting a 23% drop in its first-quarter revenue, Kubota reported a similar decline for its second quarter. However, the company forecasts a steady North American construction equipment market and plans to increase market share with updated machines.
Construction machinery revenue for the first six months of the year was down 21% to $1.8 billion vs. $2.3 billion for the same period last year.
Farm equipment and engines sales for the first half of 2025 saw a 6% year-over-year decline to $6.7 billion.
Kubota attributed its overseas sales declines in part to lower construction equipment sales in North America after dealers restocked their inventories last year. Another contributing factor in North America was declining tractor sales due to slowing residential construction and agriculture markets. However, Kubota did report its U.S. market decline had started to ease in June.
Kubota expects the North American construction equipment market to remain stable this year on both infrastructure and housing demand, and the company aims to increase market share over the remainder of the year by launching updated models of its compact track loaders.
Among all its business segments, Kubota’s sales volume was down $340 million year-over-year in its second quarter. Kubota reported the ongoing international tariff situation had generated a $28 million negative business impact in its second quarter.
Total revenue for the first half of 2025 was down 8% year-over-year to $9.8 billion. Operating profit fell 31% to $967 million, and total profit was down 29% to $794 million.
Kubota’s total North American revenue for the first half of the year – include from its Water & Environment segment – declined 18% year-over-year to $3.9 billion.
For its full year 2025 revenue, Kubota lowered its forecast to a year-over-year decline of 5% to $20 billion. The company expects operating profit to be down 30% to $1.5 billion and total profit down 38% to $960 million.
North American machinery sales for the full year 2025 are forecast to decline 11% to $7.5 billion.
Currency conversions as of August 12.
