Komatsu Reports Income Decline in 2025 Due to Tariffs, Despite Higher Sales

North American construction equipment sales were a bright spot in 2025, rising 9.5% to $4 billion.

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May 14, 2026 - 10:05
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Komatsu Reports Income Decline in 2025 Due to Tariffs, Despite Higher Sales

Komatsu finished its 2025 fiscal year with net sales of construction, mining and utility equipment up globally and in North America, though tariffs have kept operating income down year-over-year.

Global construction, mining and utility equipment net sales were up 0.2% in the full year to $24.1 billion, but global operating income for the segment fell 18% to $3.1 billion. Komatsu attributed the higher net sales to improved selling prices outweighing declining sales volumes, though profit was negatively impacted by rising tariff costs.

For North America, net sales of construction, mining and utility equipment were up 2.2% in the fiscal year to $6.6 billion. Construction equipment was the highlight, rising 9.5% to $4 billion.

In the first three months of 2026, Komatsu sold 1,259 new financed machines in the U.S., according to Fusable’s EDA equipment finance data. Popular models included the PC88MR-11 mini excavator, the WA320-8 wheel loader and the PC138SULC-11 excavator. (EDA is owned by Fusable, parent company of Equipment World.)

Net sales for the full fiscal year, among all Komatsu’s business segments, was up 0.7% to $26.2 billion, while operating income in the quarter fell 13.7% to $3.6 billion.

Looking ahead to its current 2026 fiscal year, Komatsu forecasts a net negative impact of $240 million from tariffs. Instability in the Middle East, on the other hand, is forecast to bring down global sales by $570 million and cost Komatsu $120 million in additional costs.

Net sales for the full fiscal year 2026 are forecast to decline 0.4% to $26.1 billion, while operating income is expected to drop 10.5% to $3.2 billion. The company also forecasts a 2.2% rise in construction equipment sales in North America to $4.1 billion.

Currency conversions as of May 13, 2026.

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