United Tractors (UNTR.JK): 2Q26 First Take - Weak Result as NPAT Miss on Impairment Expenses; Consensus Earnings D/G Looms

Research evidence excerpt

United Tractors (UNTR.JK): 2Q26 First Take - Weak Result as NPAT Miss on Impairment Expenses; Consensus Earnings D/G Looms

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29 Jul 2026 11:35:00 ET │ 13 pages

United Tractors (UNTR.JK)

2Q26 First Take - Weak Result as NPAT Miss on Impairment Expenses;

Consensus Earnings D/G Looms

CITI'S TAKE Neutral

Price (29 Jul 26 16:00) Rp24,500 UNTR reported 2Q26 NPAT of Rp314bn, down -51%qoq/-94%yoy,

Target price Rp27,500 substantially below Citi’s/consensus' FY26E expectations at 10%/8%

respectively. Reported earnings were weighed down by Rp3.3trn of one- Expected share price 12.2%

off charges recognized per 1H26, comprising ~Rp2.5trn Supreme return

Geothermal Energy impairment and the remainder largely related to Expected dividend yield 4.7%

Stargate's forest area utilization approval payment booked in 1Q26. Even Expected total return 16.9%

excluding these non-recurring items, underlying earnings would still have Market Cap Rp91,388,308M

missed at 43%/37% to that of Citi's/Street's FY26E estimates. US$5,060M

Consolidated revenue rose +4%qoq but remained down -13%yoy to

Rp29.7trn. Pama was decent but Komatsu demand continued to soften

on lower mining activity following tighter RKAB allocations, while TTA

volumes normalized after a strong 1Q26. Martabe resumed operations but Ryan DavisAC

the earnings recovery remained gradual. Balance sheet leverage increased +62-21-2924-9218

further to net-debt of Rp9.4trn (8.5% net-gearing) following the Doup ryan1.davis@citi.com

acquisition and ongoing buyback (4th-tranche in <1Y). More details to

follow as Citi is hosting UNTR management tomorrow (30/7) 5.30PM

SGT (register here).

Construction Machinery: Demand remains relatively soft — Komatsu unit sales fell

-20%qoq/-34%yoy to 887 units as mining demand remained subdued, with mining