Hitachi Construction Machinery is predicting plus-10% growth in its mining sales in the year to March 31, 2027, despite a flat demand outlook in key markets other than Australia.
The Japanese construction and mining equipment manufacturer reported 2% higher group sales of Y1405.5 billion (US$9.29 billion) for the 12 months to March 31, 2026. Net income was down 10% year-on-year at Y73.2 billion (US$460 million).
HCM said FY25 mining revenue was down 1% yoy in yen terms at Y424 billion (US$2.8 billion).
It is projecting a 9% improvement in FY26 net income to Y80 billion (US$500 million) and group revenue of Y1430 billion (US$9.53 billion). Mining revenue could be 12% higher yoy at Y474.4 billion (US$3.16 billion) as HCM pushes toward its goal of generating Y700 billion (US$4.4 billion) of mining business in 2030.
“[Mining] demand for FY2026 is expected to be flat compared to FY2025 as the demand for hard rock in Australia, the Americas and Central Asia are expected to remain strong despite uncertainty in the future coal demand,” HCM said.
“By mineral type demand for coal and iron ore is expected to be weak amid significant uncertainty while demand for copper and gold is expected to remain solid, continuing the trend from the previous year.
“[The company is ] positioning North, Central and South America and Africa as priority regions and strengthening core products.”
It was also focused on expanding its aftermarket business.
HCM expects FY26 improvements in its regional and product mix, cost reduction initiatives and price increases to offset higher costs from US tariffs and expenses associated with its brand change to Landcros Corporation in April 2027.
“Given the highly fluid nature of the situation we have not factored the potential impact of the escalating tensions in the Middle East into our earnings forecast at this time,” the company said.
“The business environment surrounding the company continues to grow increasingly uncertain.”
