Hitachi Construction Machinery Reports Q1 2025 Earnings Decline

Hitachi Construction Machinery Co ( (HTCMF) ) has released its Q1 earnings. Here is a breakdown of the information Hitachi Construction Machinery Co presented to its investors.

Hitachi Construction Machinery Co., Ltd. is a leading company in the construction machinery industry, specializing in the manufacture and sale of hydraulic excavators, ultra-large hydraulic excavators, and wheeled loaders, as well as providing parts and services related to these products.

In the first quarter of the fiscal year ending June 30, 2025, Hitachi Construction Machinery reported a decline in revenue and net income compared to the previous year. The company faced challenges due to the strong yen and decreased sales in North America, resulting in a 6.7% drop in revenue to ¥306,152 million and a 54.1% decrease in net income attributable to owners of the parent to ¥11,280 million.

Key financial metrics showed a decrease in adjusted operating income by 31.9% to ¥22,123 million, largely due to the yen’s appreciation and increased growth investments. Despite these challenges, sales in Europe and Asia showed signs of recovery, while the Specialized Parts & Service Business segment saw a revenue increase of 7.2%, attributed to the acquisition of U.S.-based Brake Supply Co., Inc.

Looking ahead, the company anticipates continued uncertainty in North America due to high interest rates and U.S. tariff policies. The global demand environment remains challenging, particularly in the mining sector, leading to a downward revision of the consolidated earnings forecast for the fiscal year ending March 2026. Despite these challenges, Hitachi Construction Machinery plans to maintain its annual dividend plan, reflecting stable cash flow.