Kubota Raises Profit Forecast by 79 Billion Yen to Record High on Weak Yen and Tariff Refunds
Kubota raised its full-year profit forecast by 79 billion yen to a record high, citing yen depreciation and US tariff refunds. The interim consolidated results for the fiscal year ending June 2026 showed sales of 1.6902 trillion yen, up 16.2% from the same period in 2024, and net profit of 173.6 billion yen, up 87.8%. Despite sluggish tractor demand in North America, construction machinery sales remained firm on public and private investment, while India's agricultural machinery demand grew on government support. Kubota also said it achieved profit growth even excluding currency effects.
The depreciation of the yen and US tariff refunds were the main factors boosting profits.
In North America, its key market, tractor demand remained sluggish, particularly in the residential sector, but demand for construction machinery stayed firm, supported by public and private construction investment. In India, government rural support policies drove growth in agricultural machinery demand. Kubota produces a large number of tractors and other products in Japan for export, and the weak yen had a favourable impact on profits. The company is also pursuing a business transformation that maintains sales while improving profit margins, and said that even excluding currency effects, its interim results showed increased sales and profits on an actual operating basis.
The interim consolidated results for the fiscal year ending June 2026, released on the same day, showed sales of 1.6902 trillion yen, up 16.2% from the same period in 2024, and net profit of 173.6 billion yen, up 87.8%.