Hitachi Construction Machinery (6305) Q3 2026 earnings summary

Executive summary

• Revenue and net income declined year-over-year, with strong sales in Europe and Asia and resilience in North America offsetting declines in Americas OEM and Oceania.

• Adjusted operating income fell 11.4% to ¥92,592 million, impacted by higher U.S. tariffs, growth investments, and yen appreciation.

• Net income attributable to owners dropped 9.2% to ¥56,206 million year-over-year.

• Operating and free cash flow increased year-over-year, supported by rental asset reviews.

• Earnings forecast was revised upward due to stronger-than-expected demand, material cost reductions, and favorable foreign exchange.

Financial highlights

• FY2025 1Q-3Q revenue: ¥979,349 million (-1.2% YoY); adjusted operating income: ¥92,592 million (-11.4% YoY); net income attributable to owners: ¥56,206 million (-9.2% YoY).

• EBIT for 1Q-3Q: ¥100,000 million (-10% YoY); net income from continuing operations: ¥63,169 million (-7% YoY).

• Free cash flow for 1Q-3Q increased to ¥67,322 million from ¥31,200 million YoY.

• Gross profit for Q1–Q3 FY2025 was ¥300,125 million, down from ¥314,660 million year-over-year.

• Comprehensive income rose to ¥111,359 million, up 34% year-over-year, driven by foreign currency translation gains.

Outlook and guidance

• FY2025 revenue forecast: ¥1,370,000 million (flat YoY); adjusted operating income: ¥137,000 million (-6% YoY); net income attributable to owners: ¥74,000–78,000 million (-4% YoY).

• Upward revision from previous forecast: revenue +¥50,000 million, adjusted operating income +¥5,000 million, net income +¥4,000 million.

• Annual dividend plan maintained at ¥175 per share.

• Value chain revenue expected to rise 4% YoY, driven by specialized parts & service and rentals.

• Global demand for hydraulic excavators revised upward, with mining machinery demand expected to decline.