Komatsu Sees Strong Mining Demand In Africa As Construction Sales Rise

Dubai (PlantAndEquipment.com) - Komatsu reported a good start to fiscal 2026, with construction equipment sales up 15.3% year on year to JPY502.6 billion in the first quarter. Construction equipment sales grew 5.3%, excluding currency impacts, driven by greater demand in North and Latin America.

The Japanese equipment maker forecasts full-year construction equipment sales to increase 6% to JPY2.047 trillion, with an underlying growth rate of 4.5% excluding foreign currency movements.

While Komatsu expects fewer sales in the Middle East and portions of Asia, growth elsewhere is likely to more than offset the decrease.

Africa stands out as one of Komatsu's strongest equipment markets, owing to ongoing investment in gold mining. The OEM emphasized significant demand for medium-sized construction equipment utilized in African gold mines, as well as increased mining gear sales. Management said that gold-related activities in Africa contributed favorably to first-quarter earnings.

Mining remains a significant element of Komatsu's business, with Q1 mining equipment sales totaling JPY462.4 billion, a 13.8% increase year on year. Mining gear sales are expected to rise 2.1% to JPY1.945 trillion this year, with increased gold mining demand in Africa and copper activity in Latin America helping to offset downturn in Asian coal markets.

There is also a significant equipment-category signal from Africa: Komatsu reported an increase in exports of mid-size mining dump trucks to the continent. Management especially included Africa while discussing how to improve orders and delivery for these devices.

Regional circumstances and project delays had an impact on first-quarter construction equipment sales in the Middle East. However, the effect has been less severe than Komatsu anticipated, leading the firm to raise its total demand projection. Alternative shipping routes are being employed to keep supply going, but rising freight prices remain an issue.

Komatsu now forecasts its whole Construction, Mining, and Utility Equipment division to earn roughly JPY3.97 trillion in fiscal 2026 revenues, a 4.3% increase year on year.

Equipment highlights: According to the data, the strongest category signals are medium-sized construction equipment for African gold mines and mid-size mining dump trucks bound for Africa.