Hitachi Construction Machinery (6305) Q2 2025 earnings summary

Executive summary

• Revenue for 2Q/FY2024 was ¥665.7 billion, flat year-over-year, with adjusted operating income down 13–13.5% and net income attributable to owners down 44.8–45% due to region/model mix, yen appreciation, lower sales, higher costs, and FX losses.

• Mining and value chain businesses grew, while construction machinery sales declined in key regions, especially Western Europe and North America.

• Americas revenue fell due to a lull in dealer inventory buildup.

• Strategic initiatives included strengthening the Americas business, launching electrification products, and expanding remanufacturing.

Financial highlights

• Adjusted operating income: ¥71.3 billion (down 13–13.5% y-y); net income attributable to owners: ¥31.7 billion (down 44.8–45% y-y).

• Free cash flow improved to ¥41.0 billion; operating cash flow margin rose to 9.7%.

• Total assets decreased by ¥82.5 billion from March 2024 to ¥1,752,544 million; equity ratio rose to 43.9%.

• Basic EPS was ¥149.26, down from ¥270.38 year-over-year.

• Interim dividend of ¥65 per share paid; full-year dividend forecast at ¥175 per share.

Outlook and guidance

• FY2024 revenue forecast revised down to ¥1,350.0 billion (down 4% y-y); net income forecast at ¥80.0 billion (down 14–14.2% y-y); basic EPS at ¥376.12.

• Mining parts and service revenue forecast raised, but mining truck and excavator sales forecast lowered.

• Value chain revenue forecast increased, driven by growth in parts, services, and rental.

• Shareholder return plan and dividend payout policy of 30–40% of consolidated net income maintained.

• Company aims to transform profit structure to be less dependent on new machinery demand.