Hitachi, Komatsu Face North America Sales Drop on Tariffs

Tokyo, Japan - Hitachi Construction Machinery., and Komatsu Ltd., a construction equipment manufacturers, posted weaker North American sales in the first half of fiscal 2025 as ongoing tariff issues continued to weigh on demand in the United States.

Hitachi reported a 1.4% year-over-year decline in North American revenue, which fell to 144.5 billion yen ($989 million) for the six months. The company said lower availability of pre-tariff inventory and softening sales in the Americas contributed to the dip. Despite the slowdown, Hitachi noted that its construction machinery business remains fundamentally solid, with recovering income margins and a temporary lift in demand driven by customers rushing to buy before price increases.

Komatsu also saw reduced results in the region, with North American construction, mining and utility sales dropping 7.6% year over year to $3.1 billion.

Mr. Kiyoshi Hishinuma, Executive officer and general manager of the business coordination department at Komatsu, said, “The impact of U.S. tariff policies on demand is unclear, and rental demand, which has been struggling, shows signs of reversal in fiscal year 2025. During the first half, North American demand has been stable, but we will be closely monitoring the impact of the increased U.S. tariff costs on demand.” 

Komatsu’s broader results for the first half reflect this pressure, with total construction, mining and utility sales falling 4.8% to $11.9 billion and net income dropping 12.9% to $1.2 billion. Hitachi’s global performance also showed softness, with construction machinery revenue slipping 2.9% to $4 billion and total revenue edging down 1.8% to $4.5 billion. Adjusted operating income for both construction and total business declined more than 15%. However, Hitachi’s net income rose 16.6% to $288.8 million, supported by cost controls and improved profitability in other segments.

Both companies emphasized that tariffs remain a key factor influencing purchasing behavior in North America and will continue watching market conditions closely in the coming months.

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