Hitachi Construction Machinery (6305) Q3 2025 earnings summary

Executive summary

• Revenue for 3Q FY2024 was ¥991.3B, down 2% year-over-year; adjusted operating income fell 15%, and net income attributable to owners declined 13% due to lower sales volume, unfavorable mix, and higher overheads.

• Mining and value chain businesses showed revenue growth, particularly in parts, services, and rentals, offsetting declines in new machine sales.

• Regional performance was mixed: revenue increased in Africa and Oceania but declined in North America, Europe, and Asia.

• Cash flow from operations and free cash flow improved year-over-year, driven by reduced working capital.

Financial highlights

• 3Q FY2024 revenue: ¥991.3B (-2% y/y); adjusted operating income: ¥104.5B (-15% y/y); net income attributable to owners: ¥61.9B (-13% y/y).

• EBIT for 1Q-3Q FY2024: ¥110.6B (-6% y/y); operating cash flow improved to ¥83.2B (cash flow margin 8.4%).

• Total assets rose to ¥1,867.6B, mainly due to yen depreciation and acquisitions; total equity at ¥857.9B.

• Net interest-bearing debt: ¥458.9B; net D/E ratio: 0.57.

• EPS (basic and diluted) was ¥290.92, down from ¥334.20 year-over-year.

Outlook and guidance

• FY2024 revenue forecast unchanged at ¥1,350.0B (-4% y/y); adjusted operating income forecast at ¥151.0B (-10% y/y).

• Net income forecast for FY2024 is ¥84B, down 10% y/y; EPS forecast is ¥394.92.

• Operating income guidance revised upward due to improved other operating income/expenses in 3Q.

• Revenue in Europe and Japan expected to decrease, while Africa and other regions are forecast to grow.

• Value chain and parts/services revenue forecasts revised upward; mining truck and excavator sales expected to decline.