KOMATSU LTD. Q3 FY2025 earnings call

Takeshi Horikoshi shared financial results for Q3 and 9 months of FY 2025. Kiyoshi Hishinuma explained projection for fiscal '25 business results and major market conditions, including demand trends for various products and regions

For the third quarter of FY 2025, sales in the Construction, Mining & Utility Equipment business increased by 3% year-on-year to JPY 945.8 billion, segment profit decreased by 17.9% to JPY 120.7 billion. In Retail Finance, revenues increased by 6.2% year-on-year to JPY 32.1 billion and segment profit increased by 29.9% to JPY 9.1 billion. Sales in the Industrial Machinery & Others business increased by 11.8% year-on-year to JPY 55.8 billion, and segment profit increased by 47.7% to JPY 10.7 billion. For the 9 months period of FY 2025, sales in the Construction, Mining & Utility Equipment business decreased by 2.2% year-on-year to JPY 2.688 trillion, segment profit decreased by 14.7% to JPY 362.6 billion. In Retail Finance, revenues increased by 1.1% year-on-year to JPY 93.1 billion, segment profit increased by 19.1% to JPY 26 billion. Sales in the Industrial Machinery & Others business increased by 10.9% year-on-year to JPY 162.7 billion, segment profit increased by 81.1% to JPY 27.3 billion

Full year outlook for fiscal '25 remains unchanged from October projection. Demand for 7 major products in Q3 of fiscal '25 was preliminary estimate showing 3% year-on-year increase, full year outlook 0% to minus 5% year-on-year. Demand trends in different markets like North America, Europe, Southeast Asia, Japan, etc., with respective changes and outlooks

Risks include sluggish demand in Indonesia for mining and construction equipment, impact of tariffs on costs, uncertainty in Southeast Asian market demand, yen exchange rate fluctuations affecting results

UBS Securities' Sasaki asked about Q3 results recap and Indonesia situation, and got responses from Horikoshi and Hishinuma. Nomura Securities' Maekawa inquired about mining demand, tariffs, selling prices, etc., and received answers. Goldman Sachs' Adachi asked about mining exposure, order intake, costs, and got responses. Nikkei's Otake asked about North America situation, price increases impact, FX effect, and got answers. Citigroup Securities' McDonald asked about free cash flow, SGP, etc., and got responses. SMBC Nikko's Taninaka asked about selling price increase offsetting cost, precious metals impact on aftermarket, and got answers. Nikkei's Kugai asked about rare earth export control impact and yen depreciation impact, and got responses