Hitachi Construction Machinery (6305) Q1 2026 earnings summary

Executive summary

• Achieved record-high first quarter revenue of ¥329,130 million, up 7.5% year-over-year, driven by strong demand, Parts and Service business, and yen depreciation.

• Adjusted operating income rose 55.7% to ¥34,439 million and net income attributable to owners increased 148.6% to ¥28,037 million, aided by cost controls, price increases, and asset sales.

• Demand remained solid globally, with notable growth in Latin America and India, despite some weakness in the Middle East.

• Comprehensive income attributable to owners surged to ¥41,622 million, reflecting significant foreign currency translation gains.

Financial highlights

• Q1 revenue: ¥329.1B (+7.5% YoY); adjusted operating income: ¥34.4B (+55.7% YoY); net income attributable to owners: ¥28.0B (+148.6% YoY).

• EBIT increased 109% YoY to ¥46.4B.

• Free cash flow reached ¥15.7B, aided by working capital reduction and real estate sale.

• EPS (basic/diluted): ¥131.78, up from ¥53.03 YoY.

• Gross profit margin improved to 33.8% from 29.5% YoY.

Outlook and guidance

• Full-year revenue forecast revised upward to ¥1,470.0B (+4.6% YoY), adjusted operating income to ¥150.0B (+13% YoY), and net income attributable to owners to ¥84.0B (+15% YoY).

• Upward revision reflects weaker yen, revised exchange rate assumptions, and higher logistics/material costs, despite factoring in Middle East risks.

• Mining revenue forecast to rise 14% YoY, value chain revenue up 7% YoY.

• Annual dividend plan maintained at ¥190 per share, up from ¥175 in the prior year.

• Forecast assumes stable demand in Americas, India, and Oceania.