Japanese machinery maker cited U.S. tariff refunds, a weaker yen and strong construction equipment demand, while the revised target stands about 26% above the Reuters-reported IBES consensus.
Kubota sharply raised its consolidated earnings outlook for the fiscal year ending December 2026, forecasting net profit of ¥289 billion, up from ¥210 billion and representing a 54.8% year-on-year increase to a record high. The Japanese agricultural machinery and construction equipment maker also lifted its revenue forecast by 8.6% to ¥3.28 trillion and expects operating profit to rise 50.7% to ¥400 billion. The company said a weaker yen and U.S. tariff refunds are boosting profitability, while construction machinery demand in North America remains firm and agricultural equipment demand in India is being supported by government rural programs. Kubota said interim results also showed underlying revenue and profit growth excluding currency effects, reflecting its push to improve profitability while maintaining sales. For the six months ended June 2026, revenue rose 16.2% to ¥1.69 trillion and net profit jumped 87.8% to ¥173.6 billion. Reuters, citing IBES data, said analysts had expected fiscal 2026 net profit of ¥228.8 billion, leaving Kubota's revised target roughly 26% above consensus.