[Construction Machinery] Komatsu Surges After Earnings Release

English summary

1. Komatsu released Q2 results: 26Q2 revenue JPY 1,043.1 billion, +14.7% YoY, net profit attributable to shareholders JPY 96.0 billion, +5.4% YoY, marking the first positive profit growth in the past four quarters. Revenue growth was driven by the yen depreciation effect (accounting for 70% of the increase) plus higher prices and volumes (30% of the increase). The decline in profit margin was mainly due to higher production costs and increased fixed costs. 2. By region, revenue in North America/Latin America/Europe/Africa/Oceania/China/Asia increased +29.5%/+37.2%/+11.6%/+31.6%/+16.1%/+20.7%/-30% YoY, respectively. The Americas and Africa were the main growth engines, benefiting from non-residential construction, rental demand, and mining investment. Latin America performed strongly, with revenue still growing 25% excluding currency effects. China also resumed growth, validating the real domestic prosperity. The Middle East declined more than 50%. 3.…