ENVALITH
日立建機株式会社 logo

Hitachi Construction Machinery Co., Ltd.

6305・Prime Market・Machinery

Official website
日立建機株式会社 logo
Hitachi Construction Machinery Co., Ltd.6305

Business

Hitachi Construction Machinery Co., Ltd. is a global construction machinery group comprising the reporting company, 81 consolidated subsidiaries, and 20 affiliated companies. In its core Construction Machinery Business segment, the company provides integrated Parts & Service (Value Chain Business) offerings—including parts service, rental, and used equipment—in addition to manufacturing and selling Hydraulic Excavators & Ultra-Large Hydraulic Excavators, Wheel Loaders, and other equipment. In the Specialized Parts & Service Business Segment, centered on Bradken and H-E Parts, the company provides development, manufacturing, sales, and Service Solutions (H-E Parts International) for Mining Equipment Aftersales Parts (Bradken). The company maintains sales and service locations across Europe, the Americas, Asia, Oceania, Africa, and other regions, supported by a global network of approximately 300 dealers and approximately 9,000 mechanics serving customer touchpoints.

Business Model

In the Construction Machinery Business, while new vehicle sales of Hydraulic Excavators and other equipment form the foundation, recurring revenue is accumulated through the Parts & Service (Value Chain Business), including parts, service, rental, and used equipment for machines already in operation. In the Specialized Parts & Service Business, the company develops, manufactures, and sells consumable parts for mining equipment and provides Service Solutions, maintaining a structure that secures resilient aftersales revenue even when new vehicle demand softens. Through the utilization of operational data via digital solutions (ConSite, LANDCROS Connect Insight, etc.), the company aims to improve customer productivity and build ongoing relationships.

Company Strengths

Since its founding in 1970, the company has continuously engaged in research and development and manufacturing of construction machinery centered on hydraulic excavators for 75 years. R&D expenses for FY2026 (ending March 2026) amounted to ¥33,947 million (¥33,484 million for the Construction Machinery Business), with high-value-added products such as the ultra-large hydraulic excavator EX5600-7P and models equipped with fully hydraulic quick couplers continuously being introduced to the market.

Approximately 300 dealers and about 9,000 mechanics worldwide serve as customer touchpoints, with sales and service bases deployed across Europe, the Americas, Asia, Africa, and other regions. In FY2026 (ending March 2026), sales in the independently operated businesses in Europe and the Americas remained solid, and the company achieved a steady increase in the number of operating units in the independently operated business in the Americas.

The Specialized Parts & Service Business, centered on Bradken Pty Limited and H-E Parts International LLC, achieved revenue of ¥145,226 million in FY2026 (ending March 2026), up 7.1% year on year. The acquisition of the Brake Supply Co., INC. business in December 2024 enabled the incorporation of H-E Parts' sales, building an aftersales revenue base that is less susceptible to fluctuations in new vehicle demand.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue rose 2.5% year on year to ¥1,405,493 million, securing revenue growth, but adjusted operating profit declined to ¥132,951 million (down 8.3% year on year) and profit attributable to owners of the parent fell to ¥73,193 million (down 10.1%), marking a second consecutive year of profit decline. The impact of U.S. tariffs, higher costs associated with growth investment, and deterioration in regional and product mix squeezed profitability. Amid continued uncertainty over U.S. tariff policy as an external factor, whether the company can achieve its FY2027 (ending March 2027) forecast (adjusted operating profit of ¥140,000 million, up 5.3% year on year) will be a key focus.

Through efforts such as inventory reduction, operating cash flow improved to ¥164,223 million (up ¥20,291 million year on year), and free cash flow was secured at ¥117,495 million. The ratio of equity attributable to owners of the parent rose to 48.5% (from 45.2% in the prior year), and the cash flow to interest-bearing debt ratio also improved to 3.0x (from 3.7x). Meanwhile, the dividend payout ratio for FY2026 (ending March 2026) stood at a high level of 50.9%, and with the company planning a record dividend of ¥190 per share for FY2027 (ending March 2027), the sustainability of this policy is called into question should profit recovery not materialize.

The change of company name to "LANDCROS Corporation" in April 2027 and the formulation of the new medium-term management plan "LANDCROS 2028" clearly indicate a direction of concentrating management resources on North America, Latin America, mining, and parts and service. However, costs associated with the brand transition are incorporated into the FY2027 (ending March 2027) earnings forecast, representing an additional short-term cost factor. Amid continuing external factors such as heightened tensions in the Middle East and sluggish demand in China (China revenue down 18.7% in FY2026, ending March 2026), expanding profitability in the four priority businesses will be key to the medium- to long-term evaluation.

Growth Strategy

Under the new medium-term management plan "LANDCROS 2028," the company aims for sustainable growth through four priority businesses: North America, Latin America, Mining, and Parts & Service.

Promoting expansion of retail sales share in independently operated businesses in the Americas. In FY2026 (ending March 2026), sales in independently operated businesses in Europe and the Americas remained firm, supporting revenue. Meanwhile, the impact of U.S. tariffs continues, and absorbing costs through cost reduction and price increases remains a challenge.

Promoting the development of the Latin American business foundation through the establishment of a Chile holding company and a Brazil joint venture, among other initiatives. Against a backdrop of steady demand from copper and gold mines, the new medium-term management plan "LANDCROS 2028" positions the Latin American business as one of the four priority businesses, with continued investment planned.

Expanding the aftersales parts and service business for mining equipment, centered on Bradken and H-E Parts International. The acquisition of Brake Supply Co., INC. in the United States in December 2024 contributed to increased revenue, but due to restrained investment by some major customers and intensifying competition, adjusted operating profit for FY2026 (ending March 2026) decreased to ¥11,470 million (down 24.2% year on year).

The Parts & Service (Value Chain Business), which is less susceptible to fluctuations in demand for new vehicles, has been positioned as one of the four priority businesses in the new medium-term management plan, with continuous investment and strengthening being promoted. The improvement in operating cash flow (¥164,223 million) in FY2026 (ending March 2026) demonstrates the stable earnings generation capability of the Value Chain Business.

Effective April 1, 2027, the company plans to change its corporate name to "LANDCROS Corporation" and its corporate brand to "LANDCROS." Costs associated with the brand transition have been incorporated into the earnings forecast for FY2027 (ending March 2027), which will be a factor in increased costs in the short term, but the change aims to enhance corporate value over the medium to long term.

Last updated: July 19, 2026