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Komatsu (KMTUY) Inks Deal to Buy American Battery Solutions

Komatsu Ltd. KMTUY announced that its wholly-owned subsidiary in the United States, Komatsu America Corp., agreed to acquire American Battery Solutions, Inc. (“ABS”). This move will allow Komatsu to design and manufacture its battery-powered construction and mining equipment.

ABS, headquartered in Detroit, MI, is a developer and manufacturer of heavy-duty and industrial battery packs. The company offers conventional and custom battery systems that are tailored to the specific requirements of each customer.

The acquisition will benefit from the ABS battery technology, and Komatsu's knowledge and network.

The deal is expected to close on Dec 1, 2023, subject to necessary closing conditions. Komatsu will use the first equipment produced with ABS batteries to power mining equipment in North and South America, where electrification demand is high.

ABS will continue to function as a stand-alone business entity inside Komatsu, executing current and prospective customer programs in the commercial vehicle segments.

This acquisition will also aid Komatsu's efforts to contribute toward the realization of a decarbonized society. These efforts will assist Komatsu in meeting its management target of reducing CO2 emissions from product use by 50% by 2030 compared to 2010 levels. Moreover, it will also help in achieving the company's challenge target of achieving carbon neutrality by 2050.

Price Performance

Komatsu's shares have gained 17.1% in the past year compared with the industry’s growth of 10.9%.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Zacks Rank and Stocks to Consider

Komatsu currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Industrial Products sector are Brady BRC, Applied Industrial Technologies AIT and A. O. Smith Corporation AOS. BRC currently sports a Zacks Rank #1 (Strong Buy), and AIT and AOS each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Brady’s 2023 earnings per share is pegged at $4.00. The consensus estimate for 2023 earnings has moved 13% north in the past 60 days and suggests year-over-year growth of 9.9%. The company has a trailing four-quarter average earnings surprise of 7.2%. Shares of BRC have rallied 15.3% in a year.

Applied Industrial has an average trailing four-quarter earnings surprise of 15%. The Zacks Consensus Estimate for AIT’s 2023 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have moved up 4% in the past 60 days. The company’s shares have gained 26% in a year.

The Zacks Consensus Estimate for A. O. Smith’s 2023 earnings is pegged at $3.77 per share. The consensus estimate for 2023 earnings has moved 5% north in the past 60 days and suggests year-over-year growth of 20.1%. The company has a trailing four-quarter average earnings surprise of 14%. AOS shares have gained 26.6% in a year.

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Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report

Komatsu Ltd. (KMTUY) : Free Stock Analysis Report

Brady Corporation (BRC) : Free Stock Analysis Report

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Zacks Investment Research