Hitachi Construction Machinery Co. shares experienced a decline after its major shareholder, Hitachi Ltd., sold its entire remaining stake in the company through a block trade. This transaction, valued at ¥90.1 billion ($571 million), caused Hitachi Construction's shares to fall as much as 5.5% to ¥5,143, marking their longest losing streak since March and their third consecutive day of declines. The offering price for the block trade was ¥5,121, placing it near the middle of the marketed range of ¥5,062 to ¥5,171.
Hitachi Ltd. officially ceased to be a major shareholder of Hitachi Construction Machinery as of August 19, 2026. This divestment is part of Hitachi's strategy to reduce its strategic shareholdings. As a result of the sale, Hitachi Ltd. expects to recognize a special gain of ¥179.9 billion in its single-entity financial results for the fiscal year ending March 2027. However, this sale will have no impact on Hitachi's consolidated earnings outlook, as the investment securities were classified as financial assets measured at fair value through other comprehensive income under IFRS.
SMBC Nikko Securities Co., Ltd. temporarily acquired a 10.1% stake in Hitachi Construction Machinery from Hitachi Ltd., with plans to resell these shares to various domestic and international institutional investors. Despite the change in shareholding, Hitachi Ltd. and Hitachi Construction Machinery Co. Ltd. will maintain their business relationship and continue collaboration. Hitachi Construction Machinery stated that this change in major shareholders is not expected to impact its earnings or long-term financial relations, viewing it as a move to optimize capital policy and broaden its shareholder base.
Hitachi Construction Machinery, a Japan-based company with 25,304 employees, specializes in the manufacture and sale of construction equipment, including hydraulic excavators and wheel loaders. Its operations are divided into two segments: Construction Machinery Business and Specialized Parts & Services Business, which focuses on mining equipment. The company's stock, traded under code 6305 on the Japan Exchange, saw a 5-day change of +0.90% and a year-to-date change of +21.60% as of August 20, 2026. Its market capitalization stands at approximately $7.3 billion, with a stock price of $34.20 (¥5,420).
