Kubota’s full-year 2024 earnings showed little change in consolidated revenue and only a slight increase in construction revenue, though North America construction sales were reportedly solid.
Kubota’s 2024 construction revenue was up 1% year-over-year to $4.3 billion in 2024. Overseas construction sales (outside of Japan) were up 2% to $4.1 billion. Consolidated construction revenue in Kubota’s fourth quarter fell 13.7% to just over $1 billion.
The company said that while construction sales rose in its North American market with steady government demand for infrastructure development, its tractor business suffered, partly due to a stagnating residential market.
Listed among the company’s goals was expansion of its construction equipment production capabilities, including investments in the U.S. for compact track loader production. Slides from the earnings presentation also referenced the steady progression in development of a “large CTL."
Total revenue for the year was $20.2 billion, down 0.1% from Kubota’s 2023 revenue. Operating profit for the year was down 4% to $2.1 billion from $2.2 billion in 2023. Kubota attributed this mainly to a decline in its Europe and North America Farm & Industrial Machinery sales and an increase in the cost of sales incentives.
Capital expenditures for the year came in at $1.4 billion, up 46.5% year-over-year. 2025 capital expenditures are forecast at $1.1 billion.
Farm & Industrial Machinery sales are forecast to increase in 2025, due in part to steady construction equipment sales in North America. Kubota forecasts its total 2025 revenue at $20 billion, which would represent a slight year-over-year increase.
Currency conversions as of February 21, 2025.
