Kubota Reports Lower Construction, Farm Equipment Sales in 2025
A decline in operating profit was partly due to $420 million in U.S. tariff costs.
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Kubota reported declines in machinery revenue and total operating profit in its recent 2025 earnings report, driven in part by a tough North American market and rising U.S. tariffs.
The company’s Farm & Industrial Machinery segment — encompassing its agriculture and construction equipment business — saw a 0.3% year-over-year revenue decline to $17 billion in the company’s 2025 fiscal year. Revenue from Kubota’s North American market was down 4.6% to $7.7 billion.
In North America, Kubota reported declining tractor sales driven by unfavorable market conditions and deliberate inventory reductions. Construction equipment sales also dropped in North America.
Operating profit in Kubota’s Farm & Industrial Machinery business was down 21.6% to $1.6 billion, driven by unfavorable market conditions, rising tariff costs from the U.S., and an unfavorable sales mix (sales shifting away from high-margin equipment). The rise in tariffs was partially offset by price adjustments and fixed-cost reductions.
Revenue from Kubota’s global construction equipment sales for the year were down 3.4% to $4 billion, while farm equipment and engine sales were up 0.7% to $13 billion.
Total revenue among all Kubota’s business segments was up 0.1% in the full year to $19.5 billion, but operating profit was down 15.9% year-over-year to $1.7 billion. The company reported a negative impact on its operating profit of roughly $420 million in U.S. tariff costs.
For the company’s 2026 fiscal year, Kubota forecasts total revenue will increase 4.3% to $20.4 billion and operating profit will increase 13% to $1.9 billion. Farm & Industrial Machinery sales are also expected to increase in 2026, including a rise in construction equipment sales driven by new compact track loader models.
Kubota estimates the negative impact of U.S. tariffs at $190 million in its 2026 fiscal year.
Currency conversions as of February 18, 2026.
