KOMATSU LTD. Q2 FY2026 earnings call

• Market Position

  • Komatsu is the world's second-largest comprehensive construction machinery manufacturer with a global market share of 11.2%, second only to Caterpillar Inc. of the U.S.
  • The company is an early leader in utilization of equipment operation data for value-added services.

• Core Competitive Advantage: Data-Driven Aftermarket Business

  • Komatsu has standardly equipped its construction machinery with KOMTRAX, a system that uses GPS and sensors to remotely monitor operation status and fault information, since 2001.
  • Data from KOMTRAX enables proactive maintenance and parts replacement recommendations, generating stable recurring revenue.
  • Aftermarket revenue now makes up over half of core segment revenue, which is expected to act as a buffer during economic downturns.

• Long-Term Growth Driver: Mining Equipment Autonomy

  • High customer switching costs in the mining industry mean software updates and maintenance for autonomous equipment deliver predictable recurring revenue, aligned with mine operator priorities for safety, labor reduction, and consistent operation.
  • Komatsu commercially launched its Autonomous Haulage System (AHS) for unmanned mining dump trucks in 2008, with a cumulative installed base of 940 units as of the end of September 2025.
  • In September 2025, Komatsu entered a partnership with a U.S. company to develop AI-powered next-generation software-defined vehicles (SDVs) and automation platforms, expected to accelerate development of autonomous solutions.

• Domestic Market Support

  • Japanese government's national resilience policy is supporting domestic construction machinery demand. The government's next five-year plan starting FY2026 targets a total project scale of over 2.0 trillion yen, a 500 billion yen increase from the current plan.
  • Sustained public investment for aging infrastructure upgrades and disaster response is expected to generate stable demand for Komatsu's construction equipment and create a recession-resistant revenue stream.

1. Construction Machinery and Vehicles: This segment accounts for approximately 92% of total company revenue (FY2025 March fiscal year). As of the second quarter of FY2026 March fiscal year, 53% of this segment's revenue comes from aftermarket services including maintenance and inspection. It includes hydraulic excavators, bulldozers, and mining equipment. 2. Industrial Machinery and Others: This segment contributes approximately 5% of total company revenue, with products including excimer lasers for semiconductor lithography. 3. Retail Finance: This segment contributes approximately 2% of total company revenue, covering sales financing offerings.

No explicit quantitative earnings guidance is provided in this transcript. The company plans to share updated full guidance, performance outlooks, and medium-term management strategy details during a dedicated live online IR seminar on November 26, 2025.

No explicit discussion of operational risks, financial risks, or operational failures is provided in this transcript.

No question and answer session content is included in the provided transcript excerpt. All relevant strategic and operational details are covered in the prepared overview sections above.