KUBOTA CORPORATION (6326) Stock Price

Market cap
¥2.94T
P/E ratio
14x
Kubota manufactures agricultural machinery, construction equipment, and water infrastructure systems, serving customers worldwide through three main business segments.

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Business Overview

Kubota operates three business segments—Machinery, Water & Environment, and Other—providing a diverse range of products and services. The Kubota Group comprises 213 affiliated companies worldwide, consisting of 195 consolidated subsidiaries and 18 equity method affiliates.

The Machinery segment primarily manufactures and sells agricultural machinery and related products, engines, and construction equipment. Specific products include tractors, tillers, combines, rice transplanters, lawn mowers, and utility vehicles. The segment also supplies engines for agricultural and construction machinery.

The Water & Environment segment manufactures and sells pipe systems, industrial materials, and environmental products. These include ductile iron pipes, synthetic pipes, reaction tanks, spiral steel pipes, air conditioning equipment, water and sewage treatment systems, pumps, and water treatment membrane units.

The Other segment provides logistics services, roofing materials, and exterior wall materials. Through these businesses, Kubota addresses diverse customer needs both domestically and internationally.

Management Policy

Kubota has established a long-term vision called "GMB2030" with a target year of 2030, aiming to contribute to a sustainable society. Under this vision, Kubota seeks to serve as a "platform supporting life" by contributing to society through improving food productivity and safety, promoting the circular use of water resources and waste, and enhancing urban environments.

Kubota is advancing the independent operation of its machinery business and water and environment business. In the machinery business, the company is building an efficient management structure from a global perspective and implementing organizational reforms to enable swift decision-making. Meanwhile, the water and environment business is already progressing toward independent operation, and Kubota is strengthening its position as an infrastructure solutions provider.

Additionally, Kubota is reviewing its business portfolio to improve capital efficiency. The company is shifting toward higher-margin businesses, and in particular, the water and environment business is withdrawing from low-profitability products. Through these efforts, Kubota aims to improve operating profit margins as a key element of its next medium-term management plan.

Furthermore, Kubota is preparing for its next medium-term management plan. To accelerate growth strategy and implement management reforms, the company is targeting the strengthening of business fundamentals, improvement of operational efficiency, and creation of new added value. Through these initiatives, Kubota aims to achieve sustainable growth and establish itself as a company that contributes to society.

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