Slides
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Financial Results for FY 2025 February 12, 2026
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Results
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©2026 Kubota Corporation All Rights Reserved. 3 2025 Highlights 2025 Highlights: ◼ A major shift to capital efficiency ◼ Appropriate response to U.S. tariffs by passing through to prices Improvement of BS and CF through the review of retail finance in North America: Implemented a review of the retail finance program ahead of other companies. FCF* increased significantly to 164.0 billion yen due to the curbing of the increase in finance receivables Offset additional tariff costs: In addition to the review of the above retail finance program, offset additional tariff impact by price adjustments and reducing fixed costs * Free cash flow
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©2026 Kubota Corporation All Rights Reserved. 4 Financial Results for FY 2025 Excluding the impact of foreign exchange rates, revenue increased by 16.0 billion yen and operating profit declined by 49.0 billion yen. FY 2025 FY 2024 Full Year Full Year Amount ％ Revenue 3,018.9 3,016.3 +2.6 +0.1 8.8% 10.5% 265.5 315.6 -50.2 -15.9 9.3% 11.1% 282.1 335.3 -53.2 -15.9 6.2% 7.6% 186.7 230.4 -43.8 -19.0 1USD (JPY) 150 152 1EUR (JPY) 169 164 Changes Operating profit Profit before income taxes Profit attributable to owners of the parent （Unit: billions of yen） FY 2025 FY 2024 Full Year Full Year Amount ％ Machinery 2,628.6 2,636.9 -8.3 -0.3 Farm Equipment and Engines 2,003.3 1,989.3 +14.0 +0.7 Construction Machinery 625.3 647.6 -22.3 -3.4 Water & Environment 374.4 362.6 +11.7 +3.2 Other 15.9 16.8 -0.9 -5.1 Changes （Unit: billions of yen） ▶ Breakdown of revenue by business segment
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©2026 Kubota Corporation All Rights Reserved. Revenue changes by region and business segment 5 *Excl. foreign exchange effects (Unit: billions of yen) FY 2025 Full Year FY 2024 Full Year Changes Changes* FY 2025 Full Year FY 2024 Full Year Changes Changes* Japan 354.8 311.9 +43.0 +43.0 North America 1,195.9 1,253.6 -57.7 -41.2 Europe 345.8 330.0 +15.8 +8.4 Asia and Others 732.1 741.4 -9.3 -6.1 2,628.6 2,636.9 -8.3 +4.0 2,628.6 2,636.9 -8.3 +4.0 Water & Environment 374.4 362.6 +11.7 +12.3 -17.6-22.3647.6625.3 +21.6+14.01,989.32,003.3 Machinery by region by business segment Construction Machinery Farm Equipment and Engines Market Situation Retail Situation Wholesales and Production Situation Machinery Japan The agricultural machinery market grew year-on-year due to improved farmers' incomes from rising rice prices. Demand for agricultural machinery renewal, which had been stagnant for a long time, has increased, and the market as a whole has been revitalized. To capture the expanding market with certainty, collaboration with the manufacturing division worked well to ensure stable supply. As a result, retail sales exceeded the previous year and we successfully captured solid demand. A flexible production system enabled us to respond to the surge in demand, and we minimized the loss of sales opportunities. Wholesale steadily improved in line with strong demand. North America While the overall tractor market was soft, the 40–120 HP range remained relatively moderate. The market varies depending on the segment. The construction machinery market settled after the disruption caused by additional tariffs and grew year-on-year, supported by stable housing demand and public investment. Tractor retail sales decreased year-on-year, but the impact of retail financing measures was limited. The new model MX gained a high reputation in the livestock market and supported sales. Construction machinery sales remained at the same level as the previous year and the business maintains stability. While inventory optimization progressed in the tractor business, the launch of the new model MX was going well. Inventory levels for construction machinery were replenished, and wholesale volume started shifting to demand-level. Europe The tractor market was sluggish. Although the construction machinery market was weak in the first half of the year, it turned to a recovery trend in the second half due to various government policy effects. The bottom of the market was clearly seen in the year. Retail sales of both tractor and construction machinery were lower than the previous year. Tractor sales were supported by good sales of the E-Kubota series. Tractor sales remained at the same level as the previous year. In construction machinery business, we increased inventories accoding to the market recovery and are more aggressive to the market compared to last year. Asia except Japan The Thai market was affected by declining rice prices and flooding. The Indian market grew strongly, supported by tax incentives (GST cuts). Despite facing challenges from a contracting market in Thailand, we showed a solid presence in the market by the launch of new model. Retail sales in India grew by the PROMAXX series earning a high reputation. In Thailand, production of new models woked positilively but the impact of decline in existing models was bigger. Indian market grew better than expected by strong economy and we could not keep up the production of PROMAXX in accordance with the strong demand. Water & Environment Demand for seismic reinforcement of core infrastructure driven by the National Resilience Plan continued to remain strong. In the air-conditioning market, demand for heat-mitigation measures also increased. Strengthened proposal activities aimed at securing orders for O&M and PPP (public-private partnership) projects. ー
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©2026 Kubota Corporation All Rights Reserved. 315.6 265.5 - 1.4 - 34.4 - 3.2 - 23.4 - 65.0 +20.1 +57.1 100.0 150.0 200.0 250.0 300.0 350.0 400.0 FY 2024 Full Year FY 2025 Full Year (Unit: billions of yen) +77.2 6 Profit analysis (YoY change -50.2 billion yen) -91.6 Operating Profit (compared with 2024) Effects of exchange rates Material cost (Net) Volume / Product mix, etc. Changes in sales incentive ratio Sales price adjustment Fixed costs, etc. Tariff impact Our effortsCost Increase
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©2026 Kubota Corporation All Rights Reserved. 220.0 265.5 +27.1 +15.6 - 30.0 +3.6 +17.8 +3.4 +8.1 100.0 150.0 200.0 250.0 300.0 350.0 400.0 FY 2025 (2Q Forecast) FY 2025 (Actual) (Unit: billions of yen) +32.8 7 Compared with the 2025 2Q forecast of 220.0 billion yen, operating profit increased by 45.5 billion yen. The impact of additional tariffs was offset through internal efforts. Yen depreciation and higher sales volume contributed to further profit growth -30.0 Operating Profit (compared with 2025 2Q forecast) Effects of exchange rates Material cost (Net) Volume / Product mix, etc. Changes in sales incentive ratio Sales price adjustmentFixed costs, etc. Tariff impact Our effortsCost Increase
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©2026 Kubota Corporation All Rights Reserved. As of As of Dec. 31, 2025 Dec. 31, 2024 Cash and cash equivalents 277.0 295.1 - 18.2 - 19.9 Trade receivables 1,001.7 985.2 + 16.5 + 6.1 Finance receivables 2,221.3 2,192.5 + 28.8 + 1.7 Inventories 688.9 692.3 - 3.4 - 21.2 Intangible assets 940.4 861.8 + 78.5 + 70.5 Other 1,075.7 991.7 + 84.0 Total assets 6,204.9 6,018.7 + 186.2 Bonds and borrowings 2,242.1 2,278.1 - 36.0 - 53.5 Trade payables 296.4 274.7 + 21.6 + 20.0 Other 793.4 726.1 + 67.4 Total liabilities 3,331.9 3,278.9 + 53.0 Shareholder Equity 2,623.0 2,477.3 + 145.7 Noncontrolling interests 250.0 262.5 - 12.4 Total equity 2,873.0 2,739.8 + 133.3 Total liabilities and equity 6,204.9 6,018.7 + 186.2 Changes excl. the effects of currency fluctuation （Unit: billions of yen） Changes 8 FCF 164.2 billion yen (YoY +91.0) Statement of Financial Position Cash Flows, Statement of Financial Position OCF increased due to the review of the North American retail finance program to control the increase in finance receivables and reduce the working capital burden. Capital expenditures decreased as major investments tapered off. FCF improved by 91.0 billion yen compared to the previous year. Bonds and borrowings decreased as FCF improvement OCF 282.1 OCF 327.9 ICF -208.9 ICF -163.7 FCF 73.2 FCF 164.2 FY 2024 Full Year FY 2025 Full Year (billions of yen) OCF: Cash Flows from Operating Activities ICF: Cash Flows from Investing Activities
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Forecast
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©2026 Kubota Corporation All Rights Reserved. 10 Focus for 2026 Expanded Sales Volume: Sales are expected to increase due to improvements in market conditions across major regions such as North America, Europe, Thailand, and India, as well as the positive impact of new model introductions. Improved Operating Margin: Fixed-cost increases will continue to be controlled, and operations will be managed without excessive reliance on incentives. Tariff costs and inflation is steadily passed through to prices. Creation of 170.0 billion yen in FCF: Based on the policy of the new mid-term business plan, operations will continue to be managed with a strong focus on capital efficiency. FCF will be secured through reductions in retail finance receivables in North America and maintaining lower inventory levels.
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©2026 Kubota Corporation All Rights Reserved. 11 FY 2026 FY 2025 (Forecast) (Actual) Amount ％ Revenue 3,150.0 3,018.9 +131.1 +4.3 9.5% 8.8% 300.0 265.5 +34.5 +13.0 10.1% 9.3% 317.0 282.1 +34.9 +12.4 6.7% 6.2% 210.0 186.7 +23.3 +12.5 1USD (JPY) 145 150 1EUR (JPY) 165 169 Profit attributable to owners of the parent Profit before income taxes （Unit: billions of yen） Changes Operating profit FY 2026 FY 2025 (Forecast) (Actual) Amount ％ Machinery 2,746.0 2,628.6 +117.4 +4.5 Farm Equipment and Engines 2,091.0 2,003.3 +87.7 +4.4 Construction Machinery 655.0 625.3 +29.7 +4.7 Water & Environment 388.0 374.4 +13.6 +3.6 Other 16.0 15.9 +0.1 +0.5 （Unit: billions of yen） Changes Financial Forecast for FY 2026 Excluding the impact of foreign exchange rates, revenue increased by 225.0 billion yen and operating profit increased by 65.0billion yen. ▶ Breakdown of revenue by business segment
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©2026 Kubota Corporation All Rights Reserved. Revenue changes by region and business segment 12 *Excl. foreign exchange effects (Unit: billions of yen) FY 2026 (Forecast) FY 2025 (Actual) Changes Changes* FY 2026 (Forecast) FY 2025 (Actual) Changes Changes* Japan 340.0 354.8 -14.8 -14.8 North America 1,260.0 1,195.9 +64.1 +108.8 Europe 381.0 345.8 +35.2 +45.5 Asia and Others 765.0 732.1 +32.9 +70.1 2,746.0 2,628.6 +117.4 +209.6 2,746.0 2,628.6 +117.4 +209.6 Water & Environment 388.0 374.4 +13.6 +15.0 Machinery by region by business segment 655.0 2,091.0 Construction Machinery Farm Equipment and Engines 625.3 +29.7 +50.9 +158.7+87.72,003.3 Market Situation Retail Situation Wholesales and Production Situation Machinery Japan Although rice prices remain stable, it is projected to decrease year-on-year due to a reaction to the significant renewal demand seen in the previous year. Stable demand is expected in the medium to long term. Although a rebound from last year’s strong demand is anticipated, take initiatives in each region to support a stable retail foundation. By closely monitoring market trends, healthy inventory levels are maintained while a flexible production structure is ensured. We prepare ourselves for swift response in case of rising demand. North America The tractor market is stable across all horsepower segments. In the construction machinery market, demand from the housing-related sector is stable due to lower interest rates and public investment. Stable growth is expected as a whole. Tractor sales are expected to remain at the same level as the previous year while continuing the retail financing measures implemented last year. Construction machinery sales are expected to grow, supported by the steady market penetration of CTL's new models. Tractor inventory levels has been optimized, and tractors sales are in line with retail demand. Construction machinery sales is performing well, with new model launches progressing smoothly, enabling wholesale volumes to exceed last year’s level. Europe The tractor market is expected to hit the bottom and remain around the same level as the previous year. The construction machinery market continues to improve mainly in public works. A solid demand environment is expected. Tractor sales are expected to increase year-on-year, driven by medium-sized tractors. The expansion of the lineup such as OEM models, is expected to contribute to our growth in construction machinery business. Both tractor and construction machinery sales remain steady. For construction machinery, planned operations will be carried out while preparing for next year’s regulatory requirements. Asia except Japan The recovery of rice prices in Thailand is slow but the market is expected to enter a recovery phase in the second half from the impact of flooding. Indian market continues to expand on the back of a robust economic environment. In Thailand, sales are expected to increase due to the penetration of new models introduced last year. In India, solid sales are expected to continue, driven primarily by the highly acclaimed PROMAXX series. Wholesale volumes of agricultural machinery are expected to increase both in Thailand and India according to a recovery of retail sales. In India, we increase production capacity for the PROMAXX series in order to meet the strong demand. Water & Environment Driven by the promotion of the National Resilience Plan, demand for seismic reinforcement of core infrastructure continues. A solid market is forming, particularly for ductile iron pipes. Active proposal efforts for O&M and PPP (public–private partnership) projects are being pursued, aiming to achieve stable growth in orders. ー
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©2026 Kubota Corporation All Rights Reserved. 265.5 300.0 - 30.0 +38.7 - 4.8 - 29.3 - 25.0 +3.0 +82.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 FY 2025 (Actual) FY 2026 (Forecast) (Unit: billions of yen) 13 Operating Profit Forecast (compared with 2025) Profit analysis (YoY change +34.5 billion yen) +85.0-59.1 Our effortsCost Increase Effects of exchange rates Material cost (Net) Volume / Product mix, etc. Changes in sales incentive ratio Sales price adjustment Fixed cost, etc. Tariff impact Despite increased tariff impact due to their full-year effect and higher fixed costs, these cost increases are offset by price adjustments and other measures, resulting in higher profits. U.S. tariff FY 2025 65.0 billion yen FY 2026 90.0 billion yen
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©2026 Kubota Corporation All Rights Reserved. 14 Core KPIs FY 2026 OP margin forecast 9.5% (YoY +0.7 pts) FY 2026 FCF forecast 170.0 billion yen (YoY +5.8) Offset cost increases of tariffs and inflation by price adjustments and higher sales volumes, and secure increased profits. Exceeds improved 2025 FCF level by continuing the reduction of finance receivables and improvement of working-capital efficiency driven by tighter inventory management. Promoting the improvement of the operating profit margin and the reduction of borrowings by compression of finance receivables etc. FY 2026 ROIC forecast 4.8% (YoY +0.6 pts) OCF 327.9 OCF 330.0 ICF -163.7 ICF -160.0 FCF 164.2 FCF 170.0 FY 2025 FY 2026 (Forecast) (billions of yen) OP 265.5 OP 300.0 OP margin 8.8% OP margin 9.5% FY 2025 FY 2026 (Forecast) (billions of yen) ROIC 4.2% ROIC 4.8% FY 2025 FY 2026 (Forecast) (billions of yen)
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©2026 Kubota Corporation All Rights Reserved. 156.5 238.5 230.4 186.7 210.0 8.8% 11.8% 9.9% 7.3% 8.1% FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 (Forecast) Profit attributable to owners of the parent (billions of yen) ROE 15 ■CAPEX ■Shareholder Return ■R&D expenses ■ROE 169.4 147.0 215.4 177.2 160.0 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 (Forecast) Capital expenditures (billions of yen) 88.3 100.1 111.9 106.9 109.0 3.3% 3.3% 3.7% 3.5% 3.5% FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 (Forecast)R&D expenses (billions of yen) the ratio of R&D expenses to revenue 50.6 (42) 52.5 (44) 56.6 (48) 58.2 (50) 56.9 (50) 20.3 20.0 30.0 50.0 19.6 70.9 72.5 86.6 108.2 76.5 40.6% 46.3% 36.3% 47.0% 41.0% FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Retirement of own shares (billions of yen) Total amount of dividend paid (billions of yen) (Dividend per common share (yen)) Shareholder return ratio Other indicators
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©2026 Kubota Corporation All Rights Reserved. 16 Lastly ◼Realizing Transformation with the new management team ◼Achieve sustainable growth and maximize capital efficiency ◼Promoting financial reforms that continue to increase corporate value
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©2026 Kubota Corporation All Rights Reserved. 18 Appendix: Financial Services (Management-based internal control) Statement of Financial Position Financial services Equipment operations Financial services Equipment operations 2,577.7 3,627.2 2,569.7 3,449.0 Cash and cash equivalents 51.0 226.0 27.5 267.6 Trade receivables 27.2 974.5 27.3 957.9 Finance receivables 2,221.3 - 2,192.5 - Inventories - 688.9 - 692.3 Property, plant, and equipment 19.7 920.6 20.7 841.2 Other 258.6 817.2 301.7 690.0 2,113.7 1,218.2 2,125.8 1,153.1 Total interest-bearing liabilities 1,960.8 281.3 2,006.7 271.4 Other 152.9 936.9 119.1 881.7 464.0 2,409.0 443.9 2,295.9 Total equity (Unit: billions of yen) As of Dec. 31, 2025 As of Dec. 31, 2024 Total assets Total liabilities Delinquency rate of retail finance receivables As of Dec. 31, 2025 As of Dec. 31, 2024 Amount Amount Amount ％ 2,257.6 2,224.3 +33.3 +1.5 Over 90 days delinquent payment 23.8 18.7 +5.1 +27.3 1.1% 0.8% - + 0.2P (Unit: billions of yen) Changes Balance of receivables Delinquency rate
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©2026 Kubota Corporation All Rights Reserved. 19 Appendix: Operating Profit by Reportable Segment (Management-based internal control) * ’ Adjustment’ includes mainly foreign exchange gains and lossesat the parent company. Due to the organizational reform effective January 1, 2026, some expenses that were previously included in the ‘Adjustment’ have been allocated to each business segment. As a result, we have reclassified the segment profits for FY 2025. FY 2026 FY 2025 (Forecast) (Actual) Revenue 2,746.0 2,628.6 +117.4 Operating profit 294.0 226.1 +67.9 OP margin 10.7% 8.6% +2.1P Revenue 388.0 374.4 +13.6 Operating profit 29.0 27.6 +1.4 OP margin 7.5% 7.4% +0.1P Revenue 16.0 15.9 +0.1 Operating profit 1.0 0.8 +0.2 OP margin 6.3% 5.2% +1.1P Operating profit - 24.0 11.0 -35.0 Revenue 3,150.0 3,018.9 +131.1 Operating profit 300.0 265.5 +34.5 OP margin 9.5% 8.8% +0.7P Total Adjustment* (Unit: billions of yen) YoY Machinery Other Water & Environment
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©2026 Kubota Corporation All Rights Reserved. 20 ■ YoY growth rate of retail sales units in tractor market by horsepower ■ YoY growth rate of retail sales units in mini-excavator market (0-6t) ■ YoY growth rate of retail sales units in compact track loader market ■ YoY growth rate of retail sales units in skid steer loader market Source: AEM (Association of Equipment Manufacturers) ■New privately owned housing units started (Seasonally adjusted annual rate) Source: U.S. Census Bureau 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 (Thousand units) Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. 0-40hp -17.0% -12.0% -19.4% -7.6% -14.0% 40-120hp -8.4% -9.8% -12.3% -11.5% -10.6% 120-160hp -2.6% +29.1% -6.8% -25.8% -2.5% 0-40hp -14.0% -5.6% -0.5% -19.5% -9.0% 40-120hp -13.1% -5.7% +5.5% -8.2% -4.9% 120-160hp -28.2% -27.7% -28.4% -11.5% -24.5% 2024 2025 Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. -14.2% -13.7% -16.9% +1.7% -10.5% -6.6% +4.5% +11.3% -3.4% +1.3% 2024 2025 Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. -6.9% +6.4% -6.0% +9.6% +1.5% -4.3% +9.3% +18.8% +9.1% +8.6%2025 2024 Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. +3.0% -12.1% -12.3% -7.2% -7.7% -1.6% -1.2% +3.2% +9.0% +3.3%2025 2024 Appendix: Supplementary data of the U.S. Source: AEM (Association of Equipment Manufacturers) Source: AEM (Association of Equipment Manufacturers) Source: AEM (Association of Equipment Manufacturers)
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©2026 Kubota Corporation All Rights Reserved. 21 This document may contain forward-looking statements that are based on management’s expectations, estimates, projections, and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company's markets, particularly government agricultural policies, levels of capital expenditures both in public and private sectors, foreign currency exchange rates, the occurrence of natural disasters, continued competitive pricing pressures in the marketplace, as well as the Company's ability to continue to gain acceptance of its products. Safe Harbor