Hitachi Construction Machinery revenue rises, profits fall amid tariff pressures

Japanese OEM Hitachi Construction Machinery reported higher revenue but lower profitability for its fiscal year ended March 31 as U.S. tariff-related costs weighed on earnings.

Revenue increased 2.5% year over year to 1.41 trillion yen ($9.4 billion), supported by strong demand in Europe and the company’s independent business in the Americas, according to the company’s April 24 earnings release.

However, higher costs tied to tariffs, growth investments and an unfavorable regional and product mix offset pricing gains, according to the release. Regional performance was mixed, as revenue in the Americas declined 3.3% YoY, while Europe posted strong growth, with revenue rising 26.4% YoY.

BY THE NUMBERS:

• Total revenue reached $9.4 billion, up 2.5% YoY;
• Adjusted operating income totaled $886.3 million, down 8.3% YoY;
• Income before taxes was $828.2 million, down 7.4% YoY;
• Net income totaled $551.3 million, down 9.9% YoY; and
• Net income attributable to the parent was $488 million, down 10.1% YoY.

Market outlook

Hitachi expects modest growth for its fiscal year 2026, ending March 31 2027, forecasting revenue to increase 1.7% YoY to $9.5 billion, with adjusted operating income rising 5.3% YoY to $933.3 million.

Global demand for hydraulic excavators forecasts to remain generally flat, with continued strength in North America and Europe offset by softer conditions in parts of Asia and Africa, according to the release. Tariff-related costs and broader geopolitical uncertainty, including tensions in the Middle East, remain risks to the outlook.

MARKET REACTION: Shares of Hitachi (TYO: 6305) were down 0.9% to $34.15 as of market close today. It has a market capitalization of $7.3 billion.   

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

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