# Hitachi Construction Machinery Co., Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第62期(2025/04/01－2026/03/31) (S100YIBR)
> Page: https://vizora.meequs.com/en/company/hitachi-construction-machinery
> Retrieved: 2026-09-30T21:07:45.398Z

## Company

Hitachi Construction Machinery, founded in 1973, is a company in Construction & Farm Machinery listed on TSE Prime. It has 25,304 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Hitachi Construction Machinery Co., Ltd. |
| Ticker | 6305 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/6305.T) |
| Listing | TSE Prime |
| Head office | 東京都台東区東上野二丁目16番1号 |
| Representative (per filing) | 執行役社長 先崎 正文 |
| Founded | Oct 1973 |
| Share capital | ¥81.6B |
| Employees (consolidated) | 25,304 |
| Average salary (parent only) | ¥7.7M |
| Fiscal year end | March |
| Website | www.hitachicm.com (https://www.hitachicm.com/) |
| Corporate number | 3010001026998 |
| EDINET | E01585 |
| Industries (Vizora) | Construction & Farm Machinery |

> Profile source: annual securities report (S100YIBR, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Construction & Farm Machinery (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 85.3 | 17 |
| Profitability | 59.4 | 16 |
| Cash conversion | 70 | 15 |
| Efficiency | 61.8 | 17 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 90% of Hitachi Construction Machinery's sales come from Construction machinery business, with Specialized parts and service business making up much of the rest.
- Out of every ¥100 of sales, about ¥9 is left as operating profit.
- Revenue changed +2.5% from the prior year, operating profit -15.9%.

## Company structure

- Segment revenue mix: Construction machinery business 90.3%、Specialized parts and service business 9.7%
- Revenue → net income: ¥1405493000000 → ¥82688000000
- Net income → operating cash flow: ¥82688000000 → ¥164223000000（difference ¥81535000000）
- Main uses of operating cash flow: CapEx ¥49033000000 / dividends ¥39343000000 / buybacks —
- Change in cash: ¥-5680000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥1.41T |  |
| Operating income | ¥130.1B | Margin 9.3% |
| Net income | ¥73.2B | Margin 5.2% |
| Free cash flow | ¥115.2B |  |
| Largest business | Construction machinery business | of segment revenue 90.3% |
| Employees (consolidated) | 25,304 |  |
| EPS | ¥344.06 |  |
| Diluted EPS | ¥344.06 |  |
| Book value per share | ¥2221.68 |  |
| Equity ratio | 48.5% | Derived from disclosed figures |
| Shares outstanding | 215,115,038 |  |
| Treasury shares | 2,378,900 |  |
| Shareholders | 31,248 |  |
| Average salary (parent only) | ¥7.7M | Filing company only |
| Cash ratio | 7.6% | Cash ÷ revenue 10.1% |
| Vs. industry median margin | +0.7 pp | Construction & Farm Machinery |
| ROE | 8.6% | Derived from disclosed figures |
| ROA | 4.0% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 2.2× net income
- FY2026, one segment accounts for 92% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥813331000000 | ¥1405493000000 | +72.8% |
| Operating income | ¥28235000000 | ¥130144000000 | +360.9% |
| Operating margin | 3.5% | 9.3% | +5.8 pp |
| Employees | 24,873 people | 25,304 people | +1.7% |
| Cash and equivalents | ¥80330000000 | ¥141456000000 | +76.1% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 建設機械ビジネス → 建設機械ビジネス | 90.3% |
| 建設機械ビジネス → 事業再編・廃止 | 0.0% |
| ソリューションビジネス → 事業再編・廃止 | 9.7% |
| 新設・再編 → スペシャライズド・パーツ・サービスビジネスセグメント | 9.7% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 1,405,493 | 100.0% | S100YIBR |
| Cost of revenue | 988,077 | 70.3% | S100YIBR |
| Gross profit | 417,416 | 29.7% | S100YIBR |
| SG&A | 284,465 | 20.2% | S100YIBR |
| Operating income | 130,144 | 9.3% | S100YIBR |
| Pretax income | 124,226 | 8.8% | S100YIBR |
| Income tax | 41,538 | 3.0% | S100YIBR |
| Net income | 82,688 | 5.9% | S100YIBR |
| Net income attributable to owners | 73,193 | 5.2% | S100YIBR |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 71 |
| SG&A | 20 |
| Operating income | 9 |
| (Ref.) Net income | 5 |

### Margin funnel

Gross margin 29.7% → Operating margin 9.3% → Net margin 5.2%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue up, profit down
Revenue growth: +2.5%; Core profit growth: -15.9%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): -6.37×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 1,371,285 | 1,405,493 | 34,208 | +2.5% |
| Gross profit | 428,644 | 417,416 | -11,228 | -2.6% |
| Operating income | 154,730 | 130,144 | -24,586 | -15.9% |
| Net income attributable to owners | 81,428 | 73,193 | -8,235 | -10.1% |
| Operating cash flow | 143,932 | 164,223 | 20,291 | +14.1% |
| Free cash flow | 98,858 | 115,190 | 16,332 | +16.5% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2017 | 753,947 | — | — | 8,022 | 87,961 | — | S100LTRB |
| FY ending Mar 2018 | 959,153 | — | — | 60,004 | 84,528 | — | S100PH3C |
| FY ending Mar 2019 | 1,033,703 | — | — | 68,542 | -25,693 | — | S100R5E3 |
| FY ending Mar 2020 | 931,347 | 72,849 | 7.8% | 41,171 | 22,682 | -16,673 | S100LTRB |
| FY ending Mar 2021 | 813,331 | 28,235 | 3.5% | 10,340 | 91,339 | 58,135 | S100PH3C |
| FY ending Mar 2022 | 1,024,961 | 106,590 | 10.4% | 75,826 | 39,317 | 4,777 | S100R5E3 |
| FY ending Mar 2023 | 1,264,927 | 135,665 | 10.7% | 70,175 | -26,135 | -85,275 | S100TS7E |
| FY ending Mar 2024 | 1,405,928 | 162,690 | 11.6% | 93,294 | 73,035 | 17,432 | S100WD2K |
| FY ending Mar 2025 | 1,371,285 | 154,730 | 11.3% | 81,428 | 143,932 | 98,858 | S100YIBR |
| FY ending Mar 2026 | 1,405,493 | 130,144 | 9.3% | 73,193 | 164,223 | 115,190 | S100YIBR |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥55.5M |
| Operating income per employee (consolidated) | ¥5.1M |
| Net income per employee (consolidated) | ¥2.9M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 24,987 | 25,430 | 26,230 | 26,101 | 25,304 |
| Average salary (parent company) | ¥7.2M | ¥7.4M | ¥7.6M | ¥7.7M | ¥7.7M |
| Average age (parent company) | 39.9 years | 40.1 years | 40.3 years | 40.4 years | 41.1 years |
| Average tenure (parent company) | 15.6 years | 15.5 years | 15.4 years | 15.5 years | 15.2 years |

Year over year: Employees (consolidated) -3.1% · Revenue (consolidated) +2.5%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Construction machinery business | 1,268,519 | 90.3% | 119,286 | 9.4% |
| Specialized parts and service business | 136,974 | 9.7% | 10,858 | 7.9% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Construction machinery business | 90.3% | 91.7% | 1.4 | 9.4% |
| Specialized parts and service business | 9.7% | 8.3% | -1.4 | 7.9% |

Segment → industry: Specialized parts and service business → Construction & Farm Machinery / Construction machinery business → Construction & Farm Machinery

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 164,223 | 11.7% | S100YIBR |
| Capital expenditure | 49,033 | 3.5% | S100YIBR |
| Free cash flow | 115,190 | 8.2% | 算出 |
| Investing cash flow | -46,728 | -3.3% | S100YIBR |
| Financing cash flow | -136,322 | -9.7% | S100YIBR |
| Dividends paid | 39,343 | 2.8% | S100YIBR |
| Change in cash | -5,680 | -0.4% | S100YIBR |
| Cash and equivalents | 141,456 | 10.1% | S100YIBR |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 94,257 | 111,992 | 143,530 | 147,136 | 141,456 | S100TS7E, S100WD2K, S100YIBR |
| Total assets | 1,409,560 | 1,627,003 | 1,835,672 | 1,791,006 | 1,857,321 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Net assets | 667,931 | 701,040 | 814,413 | 857,952 | 955,670 | S100TS7E, S100WD2K, S100YIBR |
| Share capital | 81,577 | 81,577 | 81,577 | 81,577 | 81,577 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Property, plant and equipment | 384,164 | 417,077 | 465,609 | 486,031 | 492,584 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Goodwill | 39,071 | 40,421 | 58,271 | 58,540 | 63,809 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Current assets | 764,355 | 908,905 | 1,077,160 | 1,000,755 | 1,043,051 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Total liabilities | 741,629 | 925,963 | 1,021,259 | 933,054 | 901,651 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Equity attributable to owners of parent | 611,608 | 659,992 | 763,380 | 809,337 | 900,166 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Retained earnings | 414,541 | 463,174 | 526,307 | 580,257 | 614,725 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |
| Treasury stock | -3,090 | -3,094 | -3,069 | -3,033 | -2,997 | S100R5E3, S100TS7E, S100WD2K, S100YIBR |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 8% | S100YIBR |
| Property, plant and equipment | 27% | S100YIBR |
| Intangibles and goodwill | 3% | — |
| Other assets | 62% | S100YIBR |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 49% | S100YIBR |
| Equity | 51% | S100YIBR |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 1,409,560 | 1,627,003 | 1,835,672 | 1,791,006 | 1,857,321 |
| Equity | 667,931 | 701,040 | 814,413 | 857,952 | 955,670 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 94,257 | 111,992 | 143,530 | 147,136 | 141,456 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 35.0% | S100YIBR |
| Fixed assets ÷ total assets | 26.5% | S100YIBR |
| Goodwill ÷ parent equity | 7.1% | S100YIBR |

Goodwill over 4 years: 39,071 → 63,809 JPY; total investing cash flow: -188,097 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 7.6% |
| Cash ÷ revenue | 10.1% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 126.2% |
| Cash vs. profit gap | 91,030 JPY mn (of net income 124.4%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 53.8% |
| Shareholder payments — dividends / FCF | 34.2% |
| CapEx intensity (capex ÷ revenue) | 3.5% |
| Investing CF relative to operating CF | 28.5% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 7.4% | 0.73× | 5.4% | 2.30× | 12.4% | S100R5E3 |
| 2023 | 5.5% | 0.83× | 4.6% | 2.39× | 11.0% | S100TS7E |
| 2024 | 6.6% | 0.81× | 5.4% | 2.43× | 13.1% | S100WD2K |
| 2025 | 5.9% | 0.76× | 4.5% | 2.31× | 10.4% | S100YIBR |
| 2026 | 5.2% | 0.77× | 4.0% | 2.13× | 8.6% | S100YIBR |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| HCJIホールディングス株式会社 | Major shareholder | 26.0% | 2026-03-31 |
| 株式会社日立製作所 | Major shareholder | 18.4% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社(信託口) | Major shareholder | 13.8% | 2026-03-31 |
| シトラスインベストメント合同会社 | Major shareholder | 7.4% | 2026-03-31 |
| 株式会社日本カストディ銀行(信託口) | Major shareholder | 5.7% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001(常任代理人 株式会社みずほ銀行 決済営業部) | Major shareholder | 1.1% | 2026-03-31 |
| JPモルガン証券株式会社 | Major shareholder | 1.0% | 2026-03-31 |
| BNYM AS AGT/CLTS 10 PERCENT(常任代理人 株式会社三菱UFJ銀行) | Major shareholder | 0.9% | 2026-03-31 |
| 野村信託銀行株式会社(投信口) | Major shareholder | 0.9% | 2026-03-31 |
| HSBC HONG KONG-TREASURY SERVICES A/C ASIAN EQUITIES DERIVATIVES (常任代理人 香港上海銀行 東京支店) | Major shareholder | 0.8% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for FY ending Mar 2026 was ¥1.41T, up +2.5% from ¥1.37T.
- Profit went the other way: operating income dropped -15.9% to ¥130.1B, and net income attributable to owners fell -10.1% to ¥73.2B.
- Cash generation improved, with operating cash flow up +14.1% to ¥164.2B and free cash flow up +16.5% to ¥115.2B.

### Drivers

- Sales held up in Europe and in the Americas business it runs under its own brand, and price increases helped
- Sales fell in the Americas OEM business and in Oceania
- U.S. tariffs, higher costs from growth investment, and a less favorable regional and product mix squeezed profit
- Cutting inventory lifted operating and free cash flow

### Risks

- Demand depends on public infrastructure and resource spending, so sharp economic or geopolitical shifts could cut volumes and prices
- Higher steel prices, tariffs and shipping costs could raise production costs
- A stronger yen would shrink overseas results when converted into yen

Cited: Annual Securities Report (62nd term) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual Securities Report (62nd term) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第62期(2025/04/01－2026/03/31) | S100YIBR | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YIBR,, |
| 訂正有価証券報告書－第61期(2024/04/01－2025/03/31) | S100WD2K | 2025-07-15 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100WD2K,, |
| 有価証券報告書－第60期(2023/04/01－2024/03/31) | S100TS7E | 2024-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TS7E,, |
| 有価証券報告書－第59期(2022/04/01－2023/03/31) | S100R5E3 | 2023-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R5E3,, |
| 訂正有価証券報告書－第58期(令和3年4月1日－令和4年3月31日) | S100PH3C | 2022-11-08 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100PH3C,, |
| 有価証券報告書－第57期(令和2年4月1日－令和3年3月31日) | S100LTRB | 2021-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LTRB,, |

## Key alliances (from the filing's material contracts)

| Partner | Type | Description | Source |
| --- | ---: | ---: | ---: |
| クボタ | Supply/OEM | クボタからミニショベルを OEM で購入 | S100YIBR |
| ベル　エクイップメントLtd. | Supply/OEM | ベルからアーティキュレートダンプトラック等を OEM で購入 | S100YIBR |
| ディア　アンド　カンパニー | Supply/OEM | ディアへ油圧ショベルと関連部品を OEM で供給 | S100YIBR |
| Envirosuite Limited | Alliance | マイニングサイトの環境モニタリングで協業 | S100YIBR |
| 株式会社中山鉄工所 | Co-development | 自走式クラッシャの共同開発と部品の相互供給 | S100YIBR |
| 伊藤忠 | Capital alliance | HCJI（伊藤忠が実質出資）経由の資本提携 | S100YIBR |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).