Hitachi Construction Machinery (6305) Q4 2024 earnings summary

Executive summary

• Revenue declined 2–2.5% year-over-year to 1,371.3 billion yen, mainly due to lower demand in North America and Europe, with robust parts and services offsetting some declines.

• Adjusted operating income fell 13.7–14% to 145.0 billion yen, impacted by lower sales, higher R&D and personnel expenses, and increased sales promotion.

• Net income attributable to owners of the parent decreased 12.7–13% to 81.4 billion yen, affected by foreign exchange losses and higher interest payments.

• Value chain business and rental revenue reached record highs, offsetting some declines in new machinery sales.

• Operating and free cash flow improved year-over-year due to reductions in accounts receivable and inventory.

Financial highlights

• Revenue: 1,371.3 billion yen (down 2–2.5% year-over-year).

• Adjusted operating income: 145.0 billion yen (down 13.7–14% year-over-year).

• Net income attributable to owners of the parent: 81.4 billion yen (down 12.7–13% year-over-year).

• Cash dividend per share increased to 175 yen.

• EPS (basic and diluted): 382.83 yen (down from 438.68 year-over-year).

Outlook and guidance

• FY2025/2026 revenue forecast at 1,375.0 billion yen, flat to up 0.3% year-over-year.

• Adjusted operating income expected to rise 4–4.1% to 151.0 billion yen, driven by value chain growth and expansion in the Americas.

• Net income attributable to owners of the parent forecast: 83.0 billion yen (up 1.9% year-over-year).

• Annual dividend projected at 175 yen per share, unchanged from the previous year.

• US tariffs (approx. 30 billion yen impact) not factored into guidance; cost pass-through and rental business expansion are key countermeasures.