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- 2-4-1 Latest Business Results & Forecasts
Latest Business Results & Forecasts
Recent Performance and Forecasts
Consolidated Performance (Actual)
| Fiscal Year Ended February 2024 | Fiscal Year Ending February 2025 | Change | Percentage Change | |
|---|---|---|---|---|
| Sales | 212,627 | 213,230 | +602 | +0.3% |
| Operating Profit | 35,296 | 37,142 | +1,845 | +5.2% |
| Ordinary Profit | 35,455 | 35,608 | +153 | +0.4% |
| Net Income Attributable to Owners of Parent Net Income | 26,149 | 26,113 | △36 | -0.1% |
- Total unit sales decreased by 11.8%, declining in both Europe and North America
- For the fiscal year ending February 2025, the final year of the Third Mid-Term Management Plan, the Group's sales volume fell below the previous fiscal year, primarily due to slowing demand for construction machinery in the European market.
- Sales volume in North America decreased by 5.1%
- The housing market continued to adjust, with new home starts affected by persistently high mortgage rates and housing prices. Additionally, uncertainty increased due to concerns over the impact of tariff increases. Sales volume decreased compared to the previous fiscal year, impacted by a decline in sales of key products during the fourth quarter.
- European unit sales: -15.1%
- The sluggish economic environment persisted, dampening investment appetite not only for construction machinery but across the board. While crawler loader sales remained steady, sales of mini excavators and hydraulic excavators were sluggish, albeit with variations by country. Consequently, unit sales fell significantly below the previous fiscal year.
- Despite lower unit sales, yen depreciation and price increases contributed to record-high sales, operating profit, and ordinary profit
- As a result, although unit sales for the current fiscal year fell below the previous fiscal year, net sales reached a record high of ¥213.23 billion (up 0.3% from the previous fiscal year) due to the impact of yen depreciation and product price increases. Regarding profits, despite negative factors such as rising parts procurement costs, write-downs of raw material inventory assets,and depreciation expenses and labor costs at the Aoki Plant, which began operations in September 2023. However, positive factors such as the weak yen and product price increases led to an operating profit of ¥37,142 million (up 5.2% year-on-year) and an ordinary profit of ¥35,608 million (up 0.4% year-on-year).Regarding the write-down of raw material inventory assets, sales of battery-powered shovels significantly underperformed expectations. As a result, related parts such as batteries, which had been procured in advance anticipating sales expansion, became stagnant inventory. This led to a reduction of ¥2,659 million in their book value. , Parent Company Net income attributable to shareholders of the parent company decreased 0.1% to ¥26,103 million due to the recording of ¥9,495 million in tax expenses.
Consolidated Earnings Forecast (Revised and Announced OCtober 10, 2025)
| Fiscal Year Ending February 2025 (Actual) | Fiscal Year Ending February 2026 (Forecast) | Change | Percentage Change | |
|---|---|---|---|---|
| Sales | 213,230 | 223,000 | +9,769 | +4.6% |
| Operating Profit | 37,142 | 38,000 | +857 | +2.3% |
| Ordinary Profit | 35,608 | 37,300 | +1,691 | +4.8% |
| Net Income Attributable to Owners of Parent Net Income | 26,113 | 26,400 | +286 | +1.1% |
- North American unit sales increased by +5.4%
- Although uncertainty surrounding the U.S. administration's tariffs and trade policies led to some customers delaying purchases in the first quarter, strong sales to rental companies in the second quarter, driven by increased crawler loader sales, resulted in higher first-half unit sales compared to the same period last year.In the second half, while some cost increases due to U.S. tariff policies were passed on to sales prices, the U.S. construction market remains robust, and unit sales are expected to exceed the previous fiscal year.
- European unit sales: +0.7%
- Although there are differences by country, signs of a bottoming out in product demand have emerged, with sales volumes for both shovels and crawler loaders exceeding the same period last year in the first half. However, sales volumes are expected to decline in the second half due to market weakness in France and inventory adjustments by distributors in Italy. Full-year sales volumes are projected to slightly exceed those of the previous fiscal year.
- Total unit sales up 4.0%; revenue and profit both expected to increase
- As a result, for the fiscal year ending February 2026, unit sales are projected to increase by 4.0% compared to the previous fiscal year, with consolidated net sales expected to rise by 4.6% to ¥223.0 billion.Regarding profits, operating income is projected to be ¥38.0 billion (up 2.3% from the previous fiscal year), ordinary income ¥37.3 billion (up 4.8%), and net income attributable to owners of parent ¥26.4 billion (up 1.1%).Both sales and each stage of profit are expected to exceed the previous fiscal year due to increased sales volume and the passing on of cost increases caused by U.S. tariff policies (price increases in the second half). The deterioration in the ratio of each stage of profit to sales in the second half is primarily due to the greater impact of tariff costs.