6305.T Stock Today: January 29 Guidance Raised on EU/Asia Demand
Hitachi Construction Machinery raised its FY2026 guidance as Europe and Asia demand strengthened, supporting sentiment for shares of 6305.T. The company now targets net profit of ¥78 billion for FY2026, above consensus, while 3Q cumulative pretax profit reached ¥91.972 billion. As of today, the stock trades at ¥5,137, up 0.57%. We review what changed, how regional orders are shaping margins, and what the latest metrics mean for investors in Japan. Hitachi Construction Machinery remains a key industrial bellwether.
Guidance Raised on Europe and Asia Strength
Hitachi Construction Machinery lifted FY2026 net profit guidance to ¥78 billion, about 5% above the prior view and topping the QUICK consensus of ¥75.8 billion. Management still sees profit down 4% year over year, reflecting mix and costs, but better demand supports the update. Local reports highlight the revision and outlook details Kabutan. We think this reset reduces downside risk into fiscal year end.
Europe Asia demand continues to lead order momentum, with replacement cycles and infrastructure work in Europe and construction and mining activity in Asia. Hitachi Construction Machinery benefits from wheel loaders and excavators in those markets, along with parts and services resilience. The stronger regional mix can sustain utilization and pricing, helping margins stabilize even as North American trends stay mixed in the near term.
Stock Reaction and Valuation
Shares of Hitachi Construction Machinery traded at ¥5,137 today, up ¥29 or 0.57%, within a ¥5,027 to ¥5,152 range. Volume was 1,169,700 versus a 1,045,589 average. The stock sits above the 50-day average of ¥4,755 and the 200-day average of ¥4,564. Year to date it is up 7.43% and up 30.10% over one year, near a ¥5,458 year high.
At today’s price, Hitachi Construction Machinery trades at 12.32 times TTM EPS of ¥409.66, with a price to sales of 0.79 and price to book of 1.29. EV to EBITDA stands at 6.57. The dividend is ¥185 per share TTM, a 3.66% yield, with a 42.6% payout ratio. Market cap is about ¥1.074 trillion.
Earnings and Margin Watch
Cumulative 3Q pretax profit came in at ¥91.972 billion, signaling solid execution as orders in Europe and Asia outperformed. The FY2026 guidance beat the QUICK consensus, which supports sentiment into year end. For headline figures and timing, see the update from Yahoo Finance Japan. We will watch conversion of backlog to revenue as a key driver for the final quarter.
TTM operating margin is 10.60% and pretax margin is 10.34%, with ROE at 10.77%. Debt to equity is 0.709 and interest coverage is 6.71, suggesting manageable leverage. The current ratio is 1.70. Inventory days stand at about 213, so working capital discipline remains important as shipments catch up with orders in Europe and Asia.
Technical Setup and Levels
Momentum is constructive but warm. RSI is 67.06, CCI is 228.7, and Stochastic %K is 87.14, all near overbought territory. MACD is positive. ADX at 16.62 indicates no strong trend. Hitachi Construction Machinery could consolidate after the guidance boost, so we look for follow through in volume to confirm a sustained move.
Price trades above the upper Bollinger Band of ¥4,787 and the Keltner upper band of ¥4,843, showing an extended short term state. The 50 day average near ¥4,755 is first support, with the 200 day around ¥4,564 below. Resistance sits near the ¥5,458 year high. ATR at ¥89 implies moderate daily swings.
Final Thoughts
Hitachi Construction Machinery’s FY2026 guidance lift to ¥78 billion, ahead of the ¥75.8 billion consensus, tightens the narrative around improving Europe and Asia demand. Today’s price, healthy balance sheet, and mid teens cash flow multiples point to a reasonable setup if margins hold. From here, we would track order intake by region, parts and service mix, backlog conversion, and pricing versus input costs. Watch FX trends, capex from infrastructure and mining customers, and inventory normalization as leading signals. For traders, momentum is firm but near overbought, so risk control around the 50 day average matters. For long term investors, the dividend yield and solid coverage add support as delivery schedules improve.
FAQs
What changed in Hitachi Construction Machinery’s FY2026 guidance?
Management increased FY2026 net profit guidance to ¥78 billion, about 5% above the prior view and above the QUICK consensus of ¥75.8 billion. Despite the raise, net profit is still guided to be down 4% year over year, reflecting mix and cost factors. Regional strength in Europe and Asia supported the update.
How did Europe and Asia demand support today’s update?
Orders and utilization improved across Europe and Asia, driven by replacement needs, infrastructure work, and steady mining activity. These regions supported excavator and wheel loader sales, plus higher margin parts and services. The mix helped stabilize pricing and margins, offsetting softer spots elsewhere and underpinning the guidance raise.
Is Hitachi Construction Machinery expensive after the move?
At ¥5,137, the stock trades at 12.32 times TTM EPS, 0.79 times sales, and 1.29 times book, with EV to EBITDA of 6.57 and a 3.66% dividend yield. Those levels sit near historical mid range for a cyclical industrial, suggesting the shares are reasonably valued if margins hold.
What key risks could pressure the outlook from here?
A slowdown in Europe or Asia construction and mining activity, FX volatility, or higher input costs could squeeze margins. Prolonged inventory days may weigh on cash conversion. Any delays in backlog delivery or weaker pricing could challenge the FY2026 targets and keep the share price in a range.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
