Hitachi Construction Machinery : Consolidated Financial Results for the Third Quarter Ended December 31, 2025

Listed company: Hitachi Construction Machinery Co., Ltd. (HCM) Stock exchange: Tokyo (Prime Market) Code number: 6305 URL: https://www.hitachicm.com/global/en/

Representative: Masafumi Senzaki, President and Executive Officer, COO Scheduled date of commencement of payment of dividends: － Supplementary materials for the financial statements have been prepared: Yes

Presentation will be held to explain the financial statements: Yes (for institutional investors, analysts and journalists)

(Rounded off to the nearest million)

1. Consolidated results for the third quarter ended December 31, 2025 (April 1, 2025 to December 31, 2025)

   1. Consolidated results

      (The percentages indicated show changes from the same period of the previous fiscal year)

      	Revenue		Adjusted operating income		Income before income taxes		Net income		Net income attributable to owners of the parent
      	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Millions of	%
      December 31, 2025	yen 979,349	(1.2)	yen 92,592	(11.4)	yen 91,972	(8.2)	yen 63,169	(8.9)	yen 56,206	(9.2)
      December 31, 2024	991,277	(1.7)	104,488	(15.0)	100,226	(8.9)	69,338	(12.3)	61,878	(12.9)

      Note: "Adjusted operating income" is presented as revenues less cost of sales as well as selling, general and administrative expenses.

      	Net income attributable to owners of the parent per share (basic)	Net income attributable to owners of the parent per share (diluted)
      	Yen	Yen
      December 31, 2025	264.21	264.21
      December 31, 2024	290.92	290.92

      References: Share of profits (losses) of investments accounted for using the equity method December 31, 2025: ¥2,673 million December 31, 2024: ¥2,529 million "Net income attributable to owners of parent per share (basic)" and "Net income attributable to owners of parent per share (diluted)" are calculated based on "Net income attributable to owners of parent".

      From the 4Q of the fiscal year ended March 31, 2024, the non-core businesses in the Specialized Parts & Service business segment are classified as discontinued operations. As a result, for the 1Q-3Q of the previous fiscal years, revenue, adjusted operating income and income before income taxes are presented in amounts for continuing operations excluding discontinued operations, while net income and net income attributable to owners of the parent are presented as the sum of continuing operations and discontinued operations.

   2. Consolidated financial position

      	Total assets	Total equity	Total equity attributable to owners of the parent	Equity attributable to owners of the parent ratio
      	Millions of yen	Millions of yen	Millions of yen	%
      December 31, 2025	1,853,946	923,248	871,221	47.0
      March 31, 2025	1,791,006	857,952	809,337	45.2

2. Dividends status

   	Cash dividends per share
   	First Quarter	Second Quarter	Third Quarter	Year end	Total
   	Yen	Yen	Yen	Yen	Yen
   March 31, 2025	-	65.00	-	110.00	175.00
   March 31, 2026	-	75.00	-
   March 31, 2026 (Projection)				100.00	175.00

   Note: Changes involving the dividend states for the fiscal year ending March 2026: None

   (English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)

3. Consolidated earnings forecast for the full year ending March 2026 (April 1, 2025 to March 31, 2026)

   (The percentages indicated show changes from the same period of the previous fiscal year)

   	Revenue		Adjusted operating income		Income before income taxes		Net income attributable to owners of the parent		Net income attributable to owners of the parent per share
   March 31, 2026	Millions of yen 1,370,000	% (0.1)	Millions of yen 137,000	% (5.5)	Millions of yen 128,000	% (4.6)	Millions of yen 78,000	% (4.2)	Yen 366.66

   Notes: Changes in consolidated earnings forecast: Yes

   *Notes

   1. Important changes in the scope of the consolidation during period: None

   2. Changes in accounting policies; changes in accounting estimates

      1. Changes in accounting policies required by IFRS None

      2. Changes in accounting policies other than those in [1] None

      3. Changes in accounting estimates None

   3. Number of outstanding shares (common shares)

[1] Number of outstanding shares (including treasury shares)

Review of the accompanying quarterly consolidated financial statements by a certified public accountant or auditing firm

None

Explanation on the appropriate use of results forecasts and other important items

Any forward-looking statements in the report, including results forecasts, are based on certain assumptions that were deemed rational as well as information currently available to the Company at this time. However, various factors could cause actual results to differ materially.

Please refer to ''1. Management Performance and Financial Conditions, (2) Outlook for the Fiscal Year Ending March 2026'' of the attachment for conditions serving as assumptions for results forecasts.

1. Management Performance and Financial Conditions

   1. Management Results 2

   2. Outlook for the Fiscal Year Ending March 2026 5

   3. Analysis of Financial Condition 7

2. Consolidated Financial Statements

   1. Consolidated Balance Sheets 9

   2. Consolidated Statements of Income and Comprehensive Income

      Consolidated Statements of Income 10

      Consolidated Statements of Comprehensive Income 11

   3. Consolidated Statements of Changes in Equity 12

   4. Consolidated Statements of Cash Flows 14

   5. Notes on Consolidated Financial Statements

(Accounting standards complied with) 15

(Notes on the Preconditions for a Going Concern) 15

(Segment Information) 15

1. Management Performance and Financial Conditions

Under the three-year medium-term management plan "BUILDING THE FUTURE 2025", which concludes in the fiscal year ending March 31, 2026, the Company is committed to the sustainable growth and enhancement of corporate value through four management strategies:

[1] Delivering innovative solutions for customer needs; [2] Enhancing value chain business;

[3] Expanding business in the Americas; and [4] Strengthening human capital and corporate capabilities.

During the Q1-Q3 of the fiscal year (April 1, 2025 to December 31, 2025), revenue slightly decreased year on year to ¥979,349 million (a decrease of 1.2% year on year). While sales declined in the Americas OEM business and Oceania, sales remained strong in Europe, Asia, and our own developing business in North America. Driven in part by selling price increases in global markets implemented alongside continuous cost reductions, revenue increased year on year excluding foreign exchange effects.

As for consolidated income items, although selling price increases contributed positively, the impact was more than offset by higher costs related to U.S. tariffs and growth investments, the unfavorable regional and product mix, and the effects of a stronger yen. As a result, an adjusted operating income decreased to ¥92,592 million (a decrease of 11.4% year on year). As for net income attributable to owners of the parent, despite improvements in financial income and expenses, the decrease in adjusted operating income led to a result of

Â¥56,206 million (a decrease of 9.2% year on year). On the other hand, due to the review of rental assets and other factors, operating cash flow and free cash flow increased year on year and remained solid.

Incidentally, from the 4Q of the fiscal year ended March 31, 2024, the non-core businesses in the Specialized Parts & Service business segment are classified as discontinued operations in line with IFRS accounting standards. As a result, for the Q1-Q3 of the previous fiscal years, revenue, adjusted operating income, operating income, and income before income taxes are presented in amounts for continuing operations excluding discontinued operations, while net income and net income attributable to owners of the parent are presented as the sum of continuing operations and discontinued operation.

Business results by segment are described below.

1. Construction Machinery Business

   During the Q1-Q3 of the fiscal year under review, revenue was ¥881,891 million (a decrease of 2.0% year on year) and adjusted operating income was ¥84,953 million (a decrease of 9.9% year on year), resulting in a decrease in both revenue and income compared to the same period of the previous year. Sales were solid in Europe, Asia, and our own developing business in North America, and selling price increases helped support both revenue and adjusted operating income. Nevertheless, cost increases-including those related to U.S. tariffs-together with the unfavorable regional and product mix and the effects of yen appreciation negatively impacted results.

2. Specialized Parts & Service Business

This segment consists primarily of Bradken Pty Limited and its subsidiaries, which are engaged in the parts and services business in the after-sales of mining facilities and machinery, and H-E Parts International LLC and its subsidiaries, which provide service solutions.

During the Q1-Q3 of the fiscal year under review, revenue was ¥103,711 million (an increase of 6.0% year on year), while adjusted operating income was ¥7,639 million (a decrease of 24.8% year on year). The increase in revenue was primarily due to the acquisition of U.S.-based Brake Supply Co., Inc. in December 2024. However, the adjusted operating income decreased due to the impact of yen appreciation and investment restraint by some major customers and intensifying competitive conditions.

The above revenues of segments [1] and [2] are the figures before intersegment adjustments.