Hitachi Ltd. is cutting all remaining capital ties with Hitachi Construction Machinery, announcing August 18 it would sell its remaining 10.1% stake held by securities company SMBC Nikko Securities.
SMBC will temporarily become a major shareholder in Hitachi Construction Machinery and plans to immediately resell the shares to institutional investors in Japan and overseas August 19.
The announcement concludes a six-year-long separation of Hitachi Ltd. from its construction unit. Here’s a brief timeline of events leading up to the split:
- 2019 – 2020: Hitachi hinted at divesting all or part of its interests in Hitachi Construction Machinery in March 2019 and again in October 2020 to focus more on its technology and energy products and services.
- 2021: Hitachi announced it was ending its 33-year agreement with John Deere to produce and distribute excavators. Hitachi Construction Machinery Americas was formed under the HCM umbrella to manufacture and distribute Hitachi-branded excavators, wheel loaders, rigid-frame dump trucks, as well as expand into new categories in South and North America.
- 2022: Hitachi Ltd. sold half of its 51% stake in Hitachi Construction Machinery to trading firm Itochu Corp. and investment fund Japan Industrial Partners, citing a strategic shift away from traditional manufacturing and toward digital businesses.
- October 2025: Hitachi Construction Machinery announced it would rebrand as “Landcros” in 2027, offering the construction arm “independent and self-reliant management” and allowing it to expand its shareholder base.
- November 2025: Hitachi Ltd. further reduces its stake in Hitachi Construction Machinery from 25.4% to 18.4%.
- August 2026: Hitachi Ltd. sells all remaining shares of Hitachi Construction Machinery.
While Hitachi Ltd. is no longer a shareholder in Hitachi Construction Machinery, the companies will continue to cooperate on digital and autonomous operation technologies, electrification and parts supply.
Hitachi Construction Machinery does not expect the change in major shareholders to have an impact on financial performance. Revenue in the first quarter was about $2.08 billion, an increase of 8% year-over-year, according to financial results released June 30.
The company expects about $106.1 million in adjusted operating income impact due to brand promotion costs, as well as $63.1 million in other operating expenses related to changing the name to Landcros. It has signed Los Angeles Dodgers' star Shohei Ohtani as its global brand ambassador to help promote the new name and brand.
Powered byFor a deeper dive, check out our previous article: Hitachi’s Change to Landcros: New CTLs, Big Growth Goals and Shohei Ohtani
Hitachi Construction Machinery ranks eighth in the world for construction equipment revenue. Its excavators rank fifth in new-financed sales in the U.S. for the 12-month period from June 1, 2025 to May 31, 2026, according to EDA.
