Slides
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Financial Results for FY 2026 2nd Quarter August 4, 2026
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Results
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©2026 Kubota Corporation All Rights Reserved. 12 Financial Results for FY 2026 2nd Quarter Revenue increased by ¥235.3 billion and operating profit increased by ¥92.5 billion. Even excluding foreign exchange effects, both revenue and operating profit exceeded the previous year, supported by sales growth and the continued benefits of price adjustment and fixed-cost management. ▶ Breakdown of revenue by business segment FY 2026 FY 2025 2Q 2Q Amount ％ Revenue 1,690.3 1,454.9 +235.3 +16.2 13.9% 9.8% 235.6 143.0 +92.5 +64.7 14.7% 10.4% 247.8 151.5 +96.3 +63.6 10.3% 6.4% 173.7 92.5 +81.2 +87.8 1USD (JPY) 158 149 1EUR (JPY) 185 162 Changes Operating profit Profit before income taxes Profit attributable to owners of the parent （Unit: billions of yen） FY 2026 FY 2025 2Q 2Q Amount ％ Machinery 1,496.9 1,267.4 +229.6 +18.1 Farm Equipment and Engines 1,125.4 995.0 +130.3 +13.1 Construction Machinery 371.5 272.3 +99.2 +36.4 Water & Environment 186.2 179.6 +6.6 +3.7 Other 7.2 8.0 -0.8 -9.7 （Unit: billions of yen） Changes Changes with local currency basis Revenue +¥139.0 bn / Operating profit +¥42.1 bn
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©2026 Kubota Corporation All Rights Reserved. Revenue changes by region and business segment 13 *Excl. foreign exchange effects (Unit: billions of yen) FY 2026 2Q FY 2025 2Q Changes Changes* FY 2026 2Q FY 2025 2Q Changes Changes* Japan 196.8 174.1 +22.7 +22.7 North America 700.5 560.5 +140.0 +97.2 Europe 215.0 166.4 +48.6 +24.0 Asia and Others 384.6 366.4 +18.2 -9.5 1,496.9 1,267.4 +229.6 +134.5 1,496.9 1,267.4 +229.6 +134.5 Water & Environment 186.2 179.6 +6.6 +5.1 Machinery by region by business segment Construction Machinery Farm Equipment and Engines +73.2+99.2272.3371.5 +61.2+130.3995.01,125.4 Market Situation Retail Situation Wholesales and Production Situation Machinery Japan Due to expectations of lower rice prices and rising production costs, the agricultural machinery market is gradually shifting from last year's strong demand into a moderate correction phase. Although agricultural machinery market is stabilizing, cumulative sales remained strong and stayed above the previous year. Responded to robust demand and maximized sales opportunities by appropriately managing production and shipments. North America Affected by the situation in the Middle East, sentiment in the 0–40 HP tractor range weakened, and the 40–100 HP range also slowed on worsening farm profitability, but livestock-related demand was relatively firm. The construction machinery market held firm, led by public and private construction investment. Tractor sales declined in the residential segment, but agricultural use remained relatively firm. Construction machinery exceeded the previous year on strong public and private construction demand. Tractors increased as inventories normalized from last year's adjustment phase. For construction machinery, we strategically built up inventory ahead of new model launches. Europe The tractor market held at the previous year's level despite continued weakness in agricultural product prices. The construction machinery market was on a recovery trend, supported by expanding infrastructure investment. For tractors, we captured growth in the basic-machine market through expanded sales of the E-Kubota series, but overall sales declined. Construction machinery remained firm on recovering demand. Tractor shipments recovered as inventories normalized. Construction machinery captured the market recovery and stayed above the previous year's level. Asia and Others Thailand Against a backdrop of weak farm incomes, the market stayed at a low level and the challenging business environment continued. Amid the continued difficult market environment, we minimized the decline in sales through new model launches and sales- promotion activities. Carried out flexible production adjustments in line with demand trends, securing profitability and healthy inventory levels. Asia and Others India The market continued to grow strongly, supported by government rural-support measures and favorable agricultural conditions. Retail sales expanded on the market's strong growth and progressed steadily. Steadily capturing demand in this growth market, both sales and production expanded. Water & Environment Supported by national resilience initiatives and replacement demand for aging infrastructure, demand for pipeline renewal remained solid. Strengthened proposal activities centered on O&M and PPP (public-private partnership) projects to win projects that lead to future growth. —
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©2026 Kubota Corporation All Rights Reserved. 143.0 235.6 +50.4 +25.9 +24.9 - 12.9 - 19.4 - 28.2 +9.8 +42.1 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 FY 2025 2Q FY 2026 2Q (Unit: billions of yen) +51.9 14 -60.5 Operating Profit (compared with FY 2025 2nd Quarter) Effects of exchange rates +50.8 Our effortsCost Increase Operating profit increased year-on-year, as tariff-related and other cost increases were offset through our efforts and tariff refunds. Notably, the positive impact of price adjustment and incentive optimization indicates stable progress in enhancing profitability. Market factors Material cost (Net) Volume Changes in sales incentive ratio Sales price adjustment Fixed costs, etc. Tariff impact Product mix, etc.
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©2026 Kubota Corporation All Rights Reserved. OCF 142.8 OCF 190.6 ICF -80.0 ICF -68.6 FCF 62.8 FCF 122.0 FY 2025 2Q FY 2026 2Q (billions of yen) 15 FCF 122.0 billion yen (YoY +59.2 billion yen) Finance receivables (YoY -31.2 billion yen) Progress was made toward improving capital efficiency through tighter control of North American retail finance receivables. Inventories (YoY -6.3 billion yen) Asset efficiency was improved by sustaining sales growth without increasing inventory levels. Trade receivables (YoY +75.6 billion yen) Increased as dealer inventories were replenished. Key Balance Sheet Items, Cash Flows Cash-generating capability improved substantially, supported by earnings growth and effective working capital management centered on finance receivables. OCF: Cash Flows from Operating Activities ICF: Cash Flows from Investing Activities +59.2 Key Balance Sheet Items *Year-on-year changes in balance exclude foreign exchange effects As of As of June 30, 2026 June 30, 2025 Finance receivables 2,230.8 2,039.0 + 191.9 - 31.2 Inventories 718.9 671.8 + 47.1 - 6.3 Trade receivables 1,106.7 946.4 + 160.3 + 75.6 Changes Changes excl. the effects of currency fluctuation Compared with the same period of the previous year Interim Dividend Interim dividend increased by ¥1 YoY to ¥26 per share. Maintain a stable progressive dividend policy.
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Forecast
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©2026 Kubota Corporation All Rights Reserved. 17 Financial Forecast for FY 2026 Although uncertainties in the market persist, both revenue and operating profit are planned to exceed the previous year's levels. ▶ Breakdown of revenue by business segment FY 2026 FY 2025 (2Q Forecast) (Actual) Amount ％ Revenue 3,280.0 3,018.9 +261.1 +8.6 3,150.0 12.2% 8.8% 9.5% 400.0 265.5 +134.5 +50.7 300.0 12.7% 9.3% 10.1% 417.0 282.1 +134.9 +47.8 317.0 8.8% 6.2% 6.7% 289.0 186.7 +102.3 +54.8 210.0 1USD (JPY) 157 150 145 1EUR (JPY) 183 169 165 Profit before income taxes （Unit: billions of yen） Changes Previous Forecast (Feb. 2026) Operating profit Profit attributable to owners of the parent FY 2026 FY 2025 (2Q Forecast) (Actual) Amount ％ Machinery 2,870.0 2,628.6 +241.4 +9.2 Farm Equipment and Engines 2,145.0 2,003.3 +141.7 +7.1 Construction Machinery 725.0 625.3 +99.7 +15.9 Water & Environment 395.0 374.4 +20.6 +5.5 Other 15.0 15.9 -0.9 -5.8 （Unit: billions of yen） Changes Changes with local currency basis Revenue +¥135.0 bn / Operating profit +¥77.5 bn
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©2026 Kubota Corporation All Rights Reserved. Revenue changes by region and business segment 18 *Excl. foreign exchange effects (Unit: billions of yen) FY 2026 (2Q Forecast) FY 2025 (Actual) Changes Changes* FY 2026 (2Q Forecast) FY 2025 (Actual) Changes Changes* Japan 360.0 354.8 +5.2 +5.2 North America 1,341.0 1,195.9 +145.0 +83.5 Europe 407.0 345.8 +61.2 +32.7 Asia and Others 762.0 732.1 +30.0 -3.4 2,870.0 2,628.6 +241.3 +117.9 2,870.0 2,628.6 +241.3 +117.9 Water & Environment 395.0 374.4 +20.6 +18.3 Machinery by region by business segment 725.0 2,145.0 Construction Machinery Farm Equipment and Engines 625.3 +99.7 +63.9 +54.0+141.72,003.3 Market Situation Retail Situation Wholesales and Production Situation Machinery Japan The agricultural machinery market is expected to contract due to a pullback from the previous year and rising production costs, but is likely to remain resilient. Although a market adjustment is anticipated, we will maintain stable sales by leveraging our sales base. Operate production and supply systems steadily to clear the order backlog. North America The 0–40 HP tractor range is weak due to inflation stemming from the situation in the Middle East. The 40–100 HP range is affected by the same factor, but livestock demand remains relatively firm, helped by stable beef prices. The construction machinery market is solid on firm private construction investment. Tractor demand in the residential segment slows, but mid-size models led by the new MX remain relatively firm. For construction machinery, we expect further growth from the addition of new CTL models. Tractors decline in the residential segment but increase in mid-size models as we replenish inventory. Construction machinery is on par with the previous year. Europe The tractor market is on par with the previous year, affected by rising production costs. In the construction machinery market, infrastructure-related demand is driving the recovery. Both tractors and construction machinery are expected to exceed the previous year. For construction machinery, we will actively capture demand from the market recovery. In addition to normalizing tractor inventories, we expect shipments to expand on recovering construction machinery demand. Asia and Others Thailand Although there are signs of improvement in crop prices, El Niño is forecast, and the market recovery is expected to still take time. Despite the challenging market environment, we aim to curb the decline in sales through new model launches. Continue production adjustments in line with demand to maintain profitability and healthy inventory levels. Asia and Others India Despite risks from the situation in the Middle East and from weather, market growth is expected to continue on the back of economic expansion. To capture more of the market's strong growth, we are expanding our lineup for paddy-field and upland-farming. Expand our customer base through new model launches and deepen market penetration for medium- to long-term growth. Water & Environment Supported by national resilience initiatives and replacement demand, the infrastructure-related market is expected to continue growing steadily. In addition to O&M and PPP (public-private partnership) projects, we will steadily capture national-resilience-related demand and aim for stable growth. —
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©2026 Kubota Corporation All Rights Reserved. 265.5 400.0 +57.0 +18.5 +16.1 - 33.0 - 37.2 +35.0 - 2.3 +80.5 100.0 200.0 300.0 400.0 500.0 FY 2025 (Actual) FY 2026 (2Q Forecast) (Unit: billions of yen) +78.2 19 -35.2 Operating Profit (compared with FY 2025) Effects of exchange rates Changes in sales incentive ratio Sales price adjustmentFixed costs, etc. Tariff impact Our effortsCost Increase Profit increased year-on-year, benefiting from yen depreciation and U.S. tariff refunds. Although cost increases related to the Middle East situation are more materialized, those are expected to offset by our efforts. We take continuous initiative to improve profitability. +34.6 Market factors Material cost (Net) Volume Product mix, etc.
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©2026 Kubota Corporation All Rights Reserved. 300.0 400.0+87.0 - 14.8 +10.8 - 28.2 - 7.9 +60.0 - 5.3 - 1.6 100.0 200.0 300.0 400.0 500.0 FY 2026 (Previous Forecast) FY 2026 (2Q Forecast) (Unit: billions of yen) -6.9 20 +23.9 Operating Profit (compared with Previous Forecast) Effects of exchange rates Material cost (Net) Changes in sales incentive ratio Sales price adjustment Fixed costs, etc. Tariff impact* Our effortsCost Increase Operating profit is forecasted to exceed previous forecast, supported by yen depreciation and U.S. tariff refunds. Although cost increases related to the Middle East situation and incentive expenses to support construction equipment sales expansion in North America are anticipated, we minimize these impact as much as possible through our careful initiatives and cost management. We steadily improve earnings power. -4.0 Market factors Volume Product mix, etc. *U.S. tariff refunds is estimated at ¥70.0 billion (¥20.0 billion was included into the previous forecast)
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©2026 Kubota Corporation All Rights Reserved. 21 Progress in Profitability Improvement and Capital Efficiency: Improving OP margin, FCF , and ROIC FY 2026 OP margin forecast 12.2% (YoY +3.4 pts) FY 2026 FCF forecast 230.0 billion yen (YoY +65.8) Improve profitability through price adjustment, incentive optimization, and disciplined fixed-cost management. Improve the power of cash generation through profitability improvement and working capital management primarily such as inventory and finance receivables. *Plan an additional ¥40.0 billion share buyback program, reflecting FCF performance (effective August 4). Improve steadily capital efficiency through both enhanced profitability and more efficient capital utilization. FY 2026 ROIC forecast 6.2% (YoY +2.0 pts) OP 265.5 OP 400.0 OP 330.0 OP margin 8.8% OP margin 12.2% OP margin 10.1% FY 2025 FY 2026 (2Q Forecast) FY 2026 (2Q Forecast*) (billions of yen) OCF 327.9 OCF 400.0 OCF 350.0 ICF -163.7 ICF -170.0 ICF -170.0 FCF 164.2 FCF 230.0 FCF 180.0 FY 2025 FY 2026 (2Q Forecast) FY 2026 (2Q Forecast*) (billions of yen) ROIC 4.2% ROIC 6.2% ROIC 5.1% FY 2025 FY 2026 (2Q Forecast) FY 2026 (2Q Forecast*) (billions of yen) Despite the significant improvement expected in FY 2026 from U.S. tariff refunds, mid-term plan targets remain unchanged given the temporary nature of the benefit. *Excluding the impact of U.S. tariff refunds
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©2026 Kubota Corporation All Rights Reserved. 22 Key Initiatives to Improve ROIC Profitability improvement Portfolio reform • Inventory visualization through core-system deployment • Cross-functional control of major expense items through the CxO system • Review of businesses and products by the Business Portfolio Strategy Committee ROIC improvement Investment discipline Fixed-cost management Inventory reduction Raising the hurdle rate • Shortening financing terms • Improving the profitability of future investments ROIC improvement is driven by three key initiatives: profitability improvement through portfolio reform, invested-capital reduction through inventory and finance receivables management, and stronger investment discipline. Price adjustment, incentive optimization, and fixed-cost management support margin improvement, while tighter investment budget management and higher hurdle rates enhance the quality of future investments. Invested- capital reduction Finance-receivable reduction Investment- envelope management • Thorough management of the total budget envelope and prioritization by the Investment Strategy Committee Price adjustment / incentive optimization • Price increases on key products take hold • Reducing the scale of zero-interest financing
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©2026 Kubota Corporation All Rights Reserved. 23 Efficiency -Focused Management Lastly We made a solid start in this first half as the first year of midterm plan. In the second half, while tariff refund provides a temporal boost, external uncertainties such as tariffs, procurement, and market volatility are expected to persist. We will continue to tighten our grip on costs and assets to deliver stable profits and cash flow, and remain firmly committed to achieve this fiscal year's performance targets.
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©2026 Kubota Corporation All Rights Reserved. 25 Appendix: Statement of Financial Position Compared with the previous fiscal year-end As of As of June 30, 2026 Dec. 31, 2025 Cash and cash equivalents 303.3 277.0 + 26.3 + 19.9 Trade receivables 1,106.7 1,001.7 + 105.0 + 85.8 Finance receivables 2,230.8 2,221.3 + 9.6 - 36.0 Inventories 718.9 688.9 + 30.0 + 19.5 Intangible assets 935.2 940.4 - 5.2 - 11.9 Other 1,059.7 1,075.7 - 16.1 Total assets 6,354.6 6,204.9 + 149.6 Bonds and borrowings 2,256.7 2,242.1 + 14.7 - 25.0 Trade payables 265.1 296.4 - 31.3 - 32.0 Other 792.5 793.4 - 1.0 Total liabilities 3,314.3 3,331.9 - 17.6 Shareholder Equity 2,794.8 2,623.0 + 171.8 Noncontrolling interests 245.5 250.0 - 4.6 Total equity 3,040.2 2,873.0 + 167.2 Total liabilities and equity 6,354.6 6,204.9 + 149.6 Changes excl. the effects of currency fluctuation （Unit: billions of yen） Changes
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©2026 Kubota Corporation All Rights Reserved. 26 Appendix: Financial Services (Management-based internal control) Statement of Financial Position Financial services Equipment operations Financial services Equipment operations 2,561.5 3,793.0 2,577.7 3,627.2 Cash and cash equivalents 74.2 229.1 51.0 226.0 Trade receivables 30.0 1,076.7 27.2 974.5 Finance receivables 2,230.8 - 2,221.3 - Inventories - 718.9 - 688.9 Property, plant, and equipment 19.5 915.6 19.7 920.6 Other 206.9 852.7 258.6 817.2 2,086.6 1,227.7 2,113.7 1,218.2 Total interest-bearing liabilities 1,924.9 331.8 1,960.8 281.3 Other 161.7 895.8 152.9 936.9 474.9 2,565.4 464.0 2,409.0 Total assets Total liabilities Total equity As of Dec. 31, 2025 (Unit: billions of yen) As of June 30, 2026 Delinquency rate of retail finance receivables As of June 30, 2026 As of Dec. 31, 2025 Amount Amount Amount ％ 2,273.0 2,257.6 +15.4 +0.7 Over 90 days delinquent payment 43.0 23.8 +19.2 +80.9 1.9% 1.1% - + 0.8P Balance of receivables Delinquency rate (Unit: billions of yen) Changes
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©2026 Kubota Corporation All Rights Reserved. 27 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, 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 2026 2Q (2Q Forecast) Revenue 1,496.9 +229.6 2,870.0 +241.4 Operating profit 212.2 +76.5 371.0 +144.9 OP margin 14.2% +3.5P 12.9% +4.3P Revenue 186.2 +6.6 395.0 +20.6 Operating profit 17.1 +0.5 29.0 +1.4 OP margin 9.2% -0.0P 7.3% -0.0P Revenue 7.2 -0.8 15.0 -0.9 Operating profit 0.4 -0.2 1.0 +0.2 OP margin 5.1% -2.2P 6.7% +1.5P Operating profit 5.8 +15.7 - 1.0 -12.0 Revenue 1,690.3 +235.3 3,280.0 +261.1 Operating profit 235.6 +92.5 400.0 +134.5 OP margin 13.9% +4.1P 12.2% +3.4P Total Adjustment* (Unit: billions of yen) YoY YoY Machinery Other Water & Environment
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©2026 Kubota Corporation All Rights Reserved. 28 ■ 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 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) Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. 0-40 HP -12.7% -6.3% -0.5% -19.5% -9.0% 40-100 HP -11.3% -5.3% +6.3% -7.5% -4.0% 100-160 HP -19.4% -21.1% -7.3% -12.3% -15.2% 0-40 HP -8.7% -19.0% - - - 40-100 HP +0.0% -9.9% - - - 100-160 HP -13.8% -7.5% - - - 2025 2026 Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. -6.6% +4.5% +11.3% -3.4% +1.3% +1.1% +0.6% - - - 2025 2026 Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. -4.3% +9.3% +18.8% +9.1% +8.6% +13.8% +4.2% - - -2026 2025 Jan.-Mar. Apr.-Jun. Jul.-Sept. Oct.-Dec. Jan.-Dec. -1.6% -1.2% +3.2% +9.0% +3.3% -11.7% -7.0% - - -2026 2025 0 500 1,000 1,500 2,000 2024 2025 2026 (Thousand units) 0 500 1,000 1,500 2,000 (Thousand units)
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©2026 Kubota Corporation All Rights Reserved. 29 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