Hitachi Construction Machinery (6305) Q2 2027 earnings summary

Executive summary

• Record 1H revenue of ¥698,076 million, up 6.7% YoY; adjusted operating income rose 25.0% to ¥75,186 million and net income attributable to owners rose 31.6% to ¥49,684 million.

• Strong Parts and Services sales, improved mix and yen depreciation supported results; the full-year earnings forecast was raised despite logistics and cost risks.

Financial highlights

• Operating income was ¥88,368 million, up 30.5% YoY; income before taxes was ¥78,800 million, up 29.3%, and EBIT was ¥84.2bn, up 27%.

• Adjusted operating income ratio improved to 10.8% from 9.2%; higher logistics costs were partly offset by improved sales mix, value-chain ratio and selling prices.

• Operating cash flow was ¥52,385 million, investing cash outflow was ¥6,115 million and free cash flow was ¥46,270 million.

Outlook and guidance

• FY2027 forecast: revenue ¥1,500,000 million, adjusted operating income ¥155,000 million, operating income ¥158,000 million, income before taxes ¥150,000 million and net income attributable to owners ¥90,000 million.

• Revenue guidance increased ¥30,000 million from the prior forecast; stronger Oceania and own Americas sales supported the revision.

• Full-year dividend plan maintained at ¥190/share, comprising ¥90 interim and ¥100 year-end, versus ¥175 total in FY2026.

• FY2026 value-chain revenue forecast was ¥668.2bn (+8% YoY); mining revenue forecast was ¥489.0bn (+15%).