Hitachi Construction Machinery Reports 25.0% Jump in First-Half Profit

Hitachi Construction Machinery posted a substantial 25.0% year-over-year increase in adjusted operating profit for the first half of fiscal year 2027, reaching 75.186 billion yen. This improvement was driven by robust demand in North America and sustained activity in the mining sector, enabling the company to achieve a record high first-half revenue of 698.076 billion yen, a 6.7% increase compared to the same period last year.

The company's construction machinery business saw both revenue and adjusted operating profit rise, increasing by 6.3% and 30.0% respectively. Growth was particularly strong in South America and India, while North American demand benefited from public investment and energy-related construction. The specialized parts and service business experienced an 11.2% increase in revenue, but a 23.9% decline in adjusted operating profit due to customer investment restraint and increased competition. Overall, the company reported a net profit of 49.684 billion yen, a 31.6% increase year-over-year.

Despite ongoing global challenges such as logistical disruptions in the Middle East, rising energy prices, and high interest rates, Hitachi Construction Machinery demonstrated resilience. The company attributed its positive performance to improvements in its value chain – particularly within its parts and services segment – coupled with the positive effects of a weaker yen. Free cash flow for the period amounted to 46.27 billion yen, reflecting strong operational performance.

The company has upwardly revised its full-year outlook, anticipating continued momentum. While acknowledging ongoing uncertainties, including a slightly decreased global demand forecast for hydraulic excavators, Hitachi Construction Machinery anticipates strong results for the remainder of the fiscal year. The company maintains its plan for an increased annual dividend of 190 yen per share, reflecting confidence in its financial performance.

These results demonstrate a clear upward trajectory in profitability for Hitachi Construction Machinery, with a 25.0% increase in adjusted operating profit and a 31.6% increase in net profit year-over-year. The company's ability to capitalize on demand in key markets like North America and South America, while improving its value chain efficiency, has positioned it for continued success in a challenging global economic environment.