Hitachi CM Q1 FY2027: Record Revenue as Parts, Weak Yen Boost Profit

Hitachi CM’s fiscal first quarter revenue reached a record ¥329.1 billion, a 7.5% increase year on year, boosted by robust parts and service sales and a tailwind from a weaker yen. Adjusted operating profit rose 55.7% to ¥34.4 billion, and net profit attributable to owners of the parent jumped 148.6% to ¥28.0 billion, aided by an ¥11.4 billion gain on asset sales. The company raised its full-year forecasts to revenue of ¥1,470.0 billion, adjusted operating profit of ¥150.0 billion, and net profit of ¥84.0 billion, and announced a planned annual dividend of ¥190 per share, up ¥15 from the previous year.

Construction Machinery Business

Revenue rose 6.8% to ¥293.1 billion, while adjusted operating profit surged 65.2% to ¥32.5 billion, delivering higher sales and profit. Demand for hydraulic excavators in North America and Europe remained firm, and large mining equipment sold well in Latin America and Oceania. Aftermarket parts and service sales expanded, lifting profitability. A weaker yen provided an additional boost, and the segment profit margin improved sharply to 11.1%.

Specialized Parts & Service Business

Segment revenue grew 12.6% to ¥38.4 billion, but adjusted operating profit fell 20.5% to ¥1.96 billion. At subsidiaries Bradken and H-E Parts, mining-related aftermarket services faced customer restraint on investment and intensifying competition. Though the weak yen lifted the top line, higher logistics and materials costs squeezed margins, with the segment margin at just 5.1%.

Total assets rose ¥23.5 billion from the prior fiscal year-end to ¥1,880.8 billion, mainly due to inventory buildup, partly offset by lower trade receivables. The equity ratio climbed to 49.0%, signaling improved financial health. Operating cash flow was an inflow of ¥17.3 billion, and free cash flow came in at ¥15.7 billion. The company plans an annual dividend of ¥190 per share (interim ¥90, year-end ¥100), marking a third consecutive year of increases. No share buybacks are planned for the current period, but the strong cash position leaves room for additional shareholder returns.

The company flagged new risks from Middle East geopolitical tensions, including logistics disruptions and rising freight costs, as well as materials inflation fueled by high oil prices. Uncertainty over U.S. tariff policy could affect its North American business. In mining, copper and gold demand remains solid, but weaker coal and iron ore prices are weighing on new equipment orders. The specialized parts segment faces a tough competitive environment, and urgent profit improvement is needed.

Hitachi CM raised its full-year consolidated forecasts, primarily reflecting a revised currency assumption of ¥154 per dollar, compared with the previous assumption of ¥148. The company also factored in higher logistics and materials costs. Full-year revenue is now seen at ¥1,470.0 billion (up 4.6% year on year), adjusted operating profit at ¥150.0 billion (up 12.8%), and net profit at ¥84.0 billion (up 14.8%), all record highs. By region, the Americas, India, and Oceania are expected to remain solid, while China and the Middle East warrant caution. The demand environment is stable, and the company has made a strong start toward its medium-term plan “LANDCROS 2028.”

Previous forecasts and prior-year results are as follows: revenue: ¥1,430.0 billion (previous) vs. ¥1,470.0 billion (revised) vs. ¥1,405.5 billion (FY2026 actual); adjusted operating profit: ¥140.0 billion vs. ¥150.0 billion vs. ¥133.0 billion; net profit: ¥80.0 billion vs. ¥84.0 billion vs. ¥73.2 billion.