TOKYO (Reuters) -Top Japanese construction machinery maker Komatsu ( KMTUF ) on Monday forecast a 27% decline in operating profit this financial year citing a stronger yen and higher costs stemming from new U.S. tariffs.

The company expects operating profit of 478 billion yen ($3.33 billion) for the business year to March 2026, after recording a profit of 657.1 billion yen in the just-ended business year, which marked an 8.2% growth.

The 2024/25 result also beat analysts' mean estimate of 605.7 billion yen, according to data compiled by LSEG.

Revenues came to 4.1 trillion yen and net income 439.6 billion yen.

Komatsu ( KMTUF ), the world's second-largest heavy equipment maker after U.S. rival Caterpillar, earns more than a quarter of its sales from North America, making it vulnerable to repercussions of President Donald Trump's trade policy.

The company also said it would buy back up to 4.3% of its outstanding shares for 100 billion yen and cancel them.

($1 = 143.4200 yen)