Stock Markets June 29, 2026 10:11 AM

United Tractors posts mixed May results as gold picks up while equipment sales lag

Macquarie flags recovery at Martabe but notes weakness in mining equipment and modest coal price moves

By Derek Hwang
Share
Twitter Reddit Facebook LinkedIn

Macquarie's review of United Tractors' May 2026 performance highlights divergent trends across the company's divisions. Gold production improved after the Martabe operation resumed following a weak April, while mining equipment sales - notably Komatsu units - remained under pressure amid subdued mining capital expenditure. Non-mining equipment lines showed stronger year-on-year gains. Thermal coal benchmarks moved modestly and owned coal volumes were resilient through the period but slowed during May.

United Tractors posts mixed May results as gold picks up while equipment sales lag
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • Gold production recovered in May after Martabe resumed operations following a weak April, supporting the mining segment's metals output.
  • Komatsu unit sales in the mining segment plunged 52% year-on-year and United Tractors' Komatsu market share fell to 17% in the first five months of 2026 from 20% in fiscal 2025, reflecting subdued mining capital expenditure.
  • Non-mining equipment lines outperformed: agricultural equipment sales rose 36% year-on-year and construction equipment sales rose 19% year-on-year; forestry sales declined 10% year-on-year.

Overview

Macquarie's assessment of United Tractors' May 2026 operations shows a split performance across business lines. Gold output recovered following a restart at the Martabe mine after April's weakness, but other segments displayed softness, particularly in mining equipment sales.

Gold and mining operations

Gold production rebounded in May once Martabe resumed operations after a subdued April. At the same time, indicators from the company's mining services pointed to cautious behaviour among mining customers. Lower overburden removal at PAMA was noted by Macquarie as a sign of continued prudence, despite coal production remaining relatively steady.

Equipment sales and Komatsu market share

United Tractors' Komatsu market share in the first five months of 2026 was 17%, down from 20% recorded in fiscal year 2025. The mining segment saw a marked decline in Komatsu unit sales, down 52% year-on-year, which Macquarie attributed to muted mining capital expenditure and conservative customer spending. Forestry sales also fell, registering a 10% year-on-year decrease.

Non-mining segments

In contrast, non-mining equipment lines performed more strongly over the same period. Agricultural equipment sales rose 36% year-on-year, while construction equipment sales increased 19% year-on-year, according to Macquarie's report.

Coal production and prices

Owned coal mining volumes showed resilience through May 2026 but lost momentum during the month. On benchmark pricing, Macquarie recorded modest declines last week: ICI 1-4 was down between 0.8% and 1.6% versus June averages, while ICI 5 declined 0.3%. Prices nevertheless remained higher than in recent months, with gains of roughly 3% to 6% against May and 7% to 16% against April.

Five-month tracking

Macquarie noted that metrics over the first five months of the year continued to track the broker's full-year estimates for United Tractors, reflecting a mixed but not uniformly deteriorating picture across business lines.


Analysis prepared from Macquarie's monthly observations of United Tractors' segment performance and price movements. The report highlights recovery in gold production alongside ongoing weakness in mining-equipment demand and modest strength in select non-mining equipment categories.

Risks

  • Continued weak demand for mining equipment could pressure earnings in the mining services and equipment segments if subdued capital expenditure persists - impacting the mining and heavy equipment sectors.
  • A slowdown in owned coal mining volumes, as momentum weakened during May, could affect coal segment cash flow and volumes if the trend continues - impacting coal production and commodity sectors.
  • Exposure to coal benchmark price volatility: although recent weekly moves were modest, changes in ICI indices could influence revenue and margins in the coal segment and related commodities markets.

More from Stock Markets

Tesla Shares Jump After NHTSA Closes Steering Probe and Wall Street Lifts Delivery Estimates Jun 29, 2026 Poland's WIG30 Ends Lower as Basic Materials, Chemicals and Developers Weigh on Market Jun 29, 2026 BofA Lowers Ratings on Four U.S. Biopharma Names Citing Valuation and Near-Term Catalyst Risks Jun 29, 2026 Copenhagen Stocks Slip as Chemicals, Real Estate and Healthcare Drag Index Down Jun 29, 2026 BIST 100 slips as insurance, machinery and transport stocks weigh on market Jun 29, 2026