Key facts
- Komatsu plans to increase construction equipment supplies to North America, driven by AI-driven data center demand.
- The company reported record quarterly revenue of ¥1.4 trillion ($8.6 billion) for fiscal 2026 Q1.
- North American sales of construction equipment rose 29% year-on-year in the April-June quarter.
- Komatsu has invested over $5 billion in North American manufacturing over the past decade.
- Recent investments include a new $80 million facility in Mesa, Arizona, and an expanded parts distribution center in Edmonton, Alberta.
- The company is offering to cover lease interest to stimulate sales in North America.
Japanese construction equipment manufacturer Komatsu is planning to increase its supply of products to North America, its largest market, driven by the growing demand for data center construction spurred by investments in artificial intelligence. The company's Chief Financial Officer, Takeshi Horikoshi, indicated that Komatsu hopes to boost sales by covering interest on leases for new machinery, aiming to counteract a potential drop in demand due to high interest rates in the region.
Komatsu reported a record quarterly revenue of ¥1.4 trillion (approximately $8.6 billion) for its fiscal 2026 first quarter, a 14.7% increase year-on-year. This growth was primarily fueled by robust demand for construction machinery in North America, attributed to data center projects and rental demand, alongside elevated resource prices. However, the company's operating profit margin decreased by 0.9 percentage points to 14.5%, impacted by headwinds from steel costs and tariff effects.
To support its North American operations, Komatsu has been reinforcing its long-term commitment through sustained investments in manufacturing, service, and remanufacturing capabilities. Over the past decade, the company has invested more than $5 billion in North American manufacturing and over $650 million in infrastructure modernization. Recent investments include an $80 million, 215,000-square-foot mining sales and service facility in Mesa, Arizona, and an expansion of its Edmonton, Alberta, operation into a 135,000-square-foot parts distribution center. The acquisition of remanufacturing specialist SRC of Lexington, Inc. also aims to meet growing demand for remanufactured components.
Despite the record revenue, Komatsu presented a cautious full-year outlook, revising its revenue forecast upward to ¥4.3 trillion (approximately $26.3 billion), but projecting a 2.2% decrease in operating profit to ¥555 billion (approximately $3.4 billion). Management noted a conservative stance on mining equipment forecasts and acknowledged higher-than-expected maritime freight costs related to the Middle East.