Komatsu reported another drop in construction equipment revenue and profit for its second quarter after seeing declining sales, rising costs and a $50 million U.S. tariff impact year-to-date.
In the second quarter of Komatsu’s fiscal year, construction, mining and utility equipment net sales were down 4.1% year-over-year to $5.8 billion. This was driven by declining sales volume, rising costs and appreciation of the Japanese yen versus other major currencies. These impacts were partially offset by improved sales prices.
Declining sales volumes came primarily from the Asian market, which saw a 40% year-over-year decline to $470 million. In North America, net sales rose less than 1% to $1.5 billion.
Second-quarter profit in Komatsu’s construction segment was down 11.8% year-over-year to roughly $770 million.
In the third quarter of 2025, 1,267 new financed Komatsu machines were sold in the U.S., according to Fusable’s EDA equipment finance data. Popular models included the PC88MR-11 excavator, PC360LC-11 excavator and WA270-8 wheel loader. EDA is owned by Fusable, parent company of Equipment World.
For the first six months of 2025, Komatsu’s construction net sales fell 4.8% year-over-year to $11.3 billion, while construction profit was down 13% to $1.6 billion in the same period.
Komatsu’s retail finance net sales fell 2.5% in the second quarter to $200 million, while industrial machinery and others net sales saw the only increase, up 23.9% to $410 million.
Total second-quarter net sales were down 2.6% year-over-year to $6.4 billion, driven primarily by the decline in construction, mining and utility equipment net sales.
Total operating income in the second quarter also fell 6.7% to roughly $950 million, and operating income ratio fell from 14.5% in last year’s second quarter to 13.9%. Net income came in at roughly $550 million, down 8.1% year-over-year.
Regarding rising U.S. tariffs, Komatsu reported a negative profit impact of roughly $50 million for the first six months of the year. However, Komatsu lowered its projected full year impact from new U.S. tariffs by 18.2% to $580 million, which is made up of a $230 million impact on inventories and a $350 million impact on the company’s profit.
Komatsu now forecasts its total 2025 net sales will decline 5.3% year-over-year to $25.2 billion. Construction net sales for the full year are expected to drop 6% to $23.1 billion, including a 3.7% decline in North American construction net sales to $6.4 billion.
Construction profit is forecast to 26.4% by the end of the year to $2.9 billion, driven by negative impacts of foreign currency exchange rates, declining sales volumes and rising U.S. tariffs.
Currency conversions as of November 13.
