Kubota's revenue fell in the first nine months of 2025 as the company faces declining equipment sales and over $100 million in tariff expenses.
Kubota’s total revenue for the first nine months was down 3.2% to $14.3 billion, while operating profit fell 22% year-over-year to $1.4 billion.
The decline in operating profit was attributed to falling sales in Kubota’s Farm & Industrial Machinery sector – which covers its farm equipment, agriculture-related products, engines and construction equipment – and an overall $387 million decline in sales mix compared to 2024. This was partially offset by $75 million in savings from reductions in sales incentives and $231 million gained from price increases.
Rising U.S. tariffs over the last nine months, totaling $114 million year-to-date, also impacted year-to-date operating profit.
Overseas (excluding Japan) Farm & Industrial Machinery revenue for the first nine months of the year fell 6.8% year-over-year to $10.8 billion, driven in North America by declining construction equipment sales following 2024 inventory replenishment and a slowing market pulling down tractor sales. Operating profit in the sector also dropped 25.4% year-to-date to $1.4 billion.
Comprehensive income for the first nine months of the year was down even further, dropping 67.9% to $520 million compared to $1.6 billion in the first nine months of 2024.
Total North American revenue, including from Kubota’s Water & Environment sector, fell 11% year-over-year to $5.7 billion.
Kubota forecasts its full 2025 revenue will be down 4.5% year-over-year to $18.7 billion and that operating profit will drop 30.3% to $1.4 billion.
