Hitachi Construction Machinery (6305) Q2 2026 earnings summary

Executive summary

• Revenue declined 1.8% year-over-year to ¥654.1 billion in H1 FY2025, mainly due to yen appreciation and weaker sales in the Americas and Oceania, but local currency revenue grew in Europe and Asia.

• Adjusted operating income fell 15.7% year-over-year to ¥60.1 billion, impacted by regional and product mix and currency effects.

• Net income attributable to owners of the parent rose 18.9% year-over-year to ¥37.8 billion, supported by one-time other operating income and improved financial income.

• The company revised its full-year forecast upward, citing signs of recovery in Q2 and resilience in North America despite tariff concerns.

• Operating and free cash flows increased year-over-year, driven by higher net income.

Financial highlights

• Revenue: ¥654.1 billion (down 1.8% year-over-year).

• Adjusted operating income: ¥60.1 billion (down 15.7% year-over-year).

• Net income attributable to owners of the parent: ¥37.8 billion (up 18.9% year-over-year).

• EBIT: ¥66.2 billion (up 8% year-over-year).

• Free cash flow: ¥44.6 billion (up ¥3.5 billion year-over-year).

Outlook and guidance

• Full-year revenue forecast revised to ¥1,320.0 billion (down 3.7% year-over-year).

• Adjusted operating income forecast at ¥132.0 billion (down 9% year-over-year).

• Net income attributable to owners of the parent forecast at ¥74.0 billion (down 9.1% year-over-year).

• Value chain revenue expected to rise 4% year-over-year, driven by specialized parts & service and rental.

• Annual dividend plan maintained at ¥175 per share, unchanged from the previous year.