Hitachi Construction Machinery (6305) Q4 2026 earnings summary

Executive summary

• Revenue increased by 2.5% year-over-year to ¥1,405,493 million, driven by strong performance in Europe and the Americas, despite declines in the Americas OEM and Oceania businesses and profit declines from tariffs and unfavorable product mix.

• Adjusted operating income fell 8.3% year-over-year to ¥132,951 million due to higher U.S. tariffs, growth investments, and regional/product mix.

• Net income attributable to owners of the parent decreased by 10.1% year-over-year to ¥73,193 million.

• Operating and free cash flow improved year-over-year, supported by inventory reductions.

• FY2026/2027 guidance anticipates higher revenue and profit, supported by solid demand, price increases, and improved product mix, despite ongoing tariff and brand change costs.

Financial highlights

• FY2025 revenue: ¥1,405.5 billion (+2% YoY); adjusted operating income: ¥133.0 billion (-8%); net income attributable to owners: ¥73.2 billion (-10%).

• EBIT: ¥134.5 billion (-9% YoY).

• Gross profit was ¥417,416 million, down from ¥428,644 million YoY.

• EPS (basic and diluted) was ¥344.06, down from ¥382.83 YoY.

• Cash dividend per share maintained at ¥175; record-high annual dividend of ¥190 per share planned for FY2027.

Outlook and guidance

• FY2026/2027 forecast: revenue ¥1,430.0 billion (+1.7–2%), adjusted operating income ¥140.0 billion (+5–5.3%), net income attributable to owners ¥80.0 billion (+9–9.3%).

• Mining revenue expected to rise 12% YoY, value chain revenue to increase 5%.

• Brand change in April 2027 to LANDCROS Corporation, with ¥16.8 billion in brand promotion and ¥10.0 billion in switching costs.

• No impact from Middle East tensions factored into forecasts.

• Exchange rate assumptions: ¥150/USD, ¥178/EUR, ¥22.1/CNY, ¥107/AUD.