Hitachi, Komatsu North American sales drop as tariff woes persist

Japanese equipment manufacturers Komatsu and Hitachi Construction Machinery saw their North American sales decline in the first half of their fiscal years as tariffs continue to slow demand stateside. 

Hitachi’s North American revenue for its first half fell 1.4% year over year to 144.5 billion yen ($989 million) as tariff concerns resulted in lower sales in the Americas, especially as the supply of pre-tariff inventory declined, the company said in its Oct. 28 second-quarter earnings release. 

“The construction machinery business remains solid overall, despite a decline in the OEM supply in the Americas, and income margins are recovering,” according to an accompanying Hitachi release. “In the Americas, the re-price hike rush in demand also served as a tailwind.” 

H1 2025 ended Sept. 30 for both companies. 

Komatsu sales fall, forecast lowered 

Komatsu’s North American construction, mining and utility sales revenue for H1 2025 fell 7.6% YoY to $3.1 billion as tariffs remain a concern despite the U.S.-Japan trade deal, with demand still forecasted to decline between 0% and 5% YoY, Kiyoshi Hishinuma, executive officer and general manager of the business coordination department at Komatsu, said during the company’s Oct. 29 earnings call. 

“The impact of U.S. tariff policies on demand is unclear, and rental demand, which has been struggling, shows signs of reversal in fiscal year 2025,” he said. “During the first half, North American demand has been stable, but we will be closely monitoring the impact of the increased U.S. tariff costs on demand.” 

By the numbers

Komatsu reported the following for H1 2025:  

• Retail finance new contracts, or originations, totaled $3.7 billion, down 5.5% YoY;  

• Retail finance revenue landed at $416.7 million, down 1.3% YoY;  

• Retail finance’s managed assets rose to $9.6 billion, up 7.8% YoY;  

• North American construction, mining and utility sales represented 26% of total sales, down 1 percentage points YoY; 

• Total construction, mining and utility sales fell 4.8% YoY to $11.9 billion; 

• Net income was $1.2 billion, down 12.9% YoY. 

Meanwhile, Hitachi reported the following results for H1:  

• Construction machinery revenue decreased to $4 billion, down 2.9% YoY; 

• Total revenue slipped to $4.5 billion, down 1.8% YoY; 

• Construction adjusted operating income fell to $373.2 million, down 15.2% YoY; 

• Total adjusted operating income was $411.7 million, down 15.7% YoY; and 

• Net income jumped to $288.8 million, up 16.6% YoY. 

Hitachi announces 2027 rebrand 

Hitachi Construction Machinery also announced plans to rebrand as Landcros Corp. effective April 1, 2027, President and Chief Operating Officer Masafumi Senzaki said during the company’s Oct. 28 earnings call. 

“Landcros combines ‘land,’ representing our vision of ‘Ensure a prosperous land and society for the future,’ with the values we hold dear: customer, reliable, open and solutions,” he said.  

The rebranding reflects the company’s evolution since its 2022 “second start-up,” when Hitachi Ltd. partially divested its shares and the business began pursuing independent growth in the Americas, according to the company’s release. 

Market reaction 

Shares of Komatsu (OTCS: KMTUY) were down 1.91% to $32.88 as of market close today. It has a market capitalization of $30.42 billion. 

Shares of Hitachi (TYO: 6305) were down 0.83% to $32.48 as of market close today. It has a market capitalization of $6.91 billion. 

Editor’s note: All amounts have been converted to U.S. dollars.  

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