Kubota Reports Q1 Construction Equipment Revenue Down 23%

Kubota had a challenging start to 2025 after experiencing flat consolidated revenue and a small increase in construction equipment revenue in 2024. The company reported declines in first-quarter profit and construction revenue.

In the first quarter of 2025, global construction machinery revenue decreased by 22.7% to $890 million, down from $1.2 billion in the same period last year. Revenue from Kubota’s farm and industrial machinery division, which includes farm equipment, construction equipment, and engines businesses, dropped by 10.3% to $4.2 billion. North American sales met expectations, but a decrease in construction equipment sales was due to inventory replenishment from the previous year.

Kubota’s farm and industrial machinery global operating profit fell by 38% in the first quarter to $428 million. The company’s total first-quarter revenue, including revenue from its water and environment business, decreased by 8.1% year-over-year to $4.9 billion from $5.4 billion.

Total revenue from Kubota’s North American market was $1.9 billion, a 21% decrease from $2.3 billion in the first quarter of the previous year. Operating profit in the first quarter declined by 40.2% to $425.5 million from $711 million in the same period last year, mainly due to reduced sales in the farm and industrial machinery business in North America. Total profit also dropped by 39.2% to $332.2 million.

For the full year 2025, Kubota anticipates total revenue to increase by 1.1% to $21.1 billion, while operating profit is projected to decrease by 11.3% year-over-year to $1.9 billion. Profit before income taxes is forecasted to decline by 11.4% to $2.1 billion.