Interim report
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) Consolidated Financial Results for the Third Quarter Ended December 31, 2025 (I FRS) January 29, 2026 Listed company: Hitachi Construction Machinery Co., Ltd. (HCM) Stock exchange: Tokyo (Prime Market) Code number: 6305 URL: https://www.hitachicm.com/global/en/ Representative: Masafumi Senzaki, President and Executive Officer, COO Scheduled date of commencement of payment of dividends: － Supplementary materials for the financial statements have been prepared: Yes Presentation will be held to explain the financial statements: Yes (for institutional investors, analysts and journalists) (Rounded off to the nearest million) 1. Consolidated results for the third quarter ended December 31, 2025 (April 1, 2025 to December 31, 2025) (1) Consolidated r esults (The percentages indicated show changes from the same period of the previous fiscal year) Revenue Adjusted operating income Income before income taxes N et income Net income attributable to owners of the parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 979,349 (1.2) 92,592 (11.4) 91,972 (8.2) 63,169 (8.9) 56,206 (9.2) December 31, 2024 991,277 (1.7) 104,488 (15.0) 100,226 (8.9) 69,338 (12.3) 61,878 (12.9) Note: “Adjusted operating income” is presented as revenues less cost of sales as well as selling, general and administrative expenses. References: Share of profits (losses) of investments accounted for using the equity method December 31, 2025: ¥2,673 million December 31, 2024: ¥2,529 million “Net income attributable to owners of parent per share (basic)” and “Net income attributable to owners of parent per share (diluted)” are calculated based on “Net income attributable to owners of parent”. From the 4Q of the fiscal year ended March 31, 2024, the non-core businesses in the Specialized Parts & Service business segment are classified as discontinued operations. As a result, for the 1Q-3Q of the previous fiscal years, revenue, adjusted operating income and income before income taxes are presented in amounts for continuing operations excluding discontinued operations, while net income and net income attributable to owners of the parent are presented as the sum of continuing operations and discontinued operations. (2) Consolidated financial position Total assets Total equity Total equity attributable to owners of the parent Equity attributable to owners of the parent ratio Millions of yen Millions of yen Millions of yen % December 31, 2025 1,853,946 923,248 871,221 47.0 March 31, 2025 1,791,006 857,952 809,337 45.2 2. Dividends status Cash dividends per share First Quarter Second Quarter Third Quarter Year end Total Yen Yen Yen Yen Yen March 31, 2025 － 65.00 － 110.00 175.00 March 31, 2026 － 75.00 － March 31, 2026 (Projection) 1 00.00 175.00 Note: Changes involving the dividend states for the fiscal year ending March 2026: None Net income attributable to owners of the parent per share (basic) Net income attributable to owners of the parent per share (diluted) Yen Yen December 31, 2025 264.21 264.21 December 31, 2024 290.92 290.92
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) 3. Consolidated earnings forecast for the full year ending March 2026 (April 1, 2025 to March 31, 2026) (The percentages indicated show changes from the same period of the previous fiscal year) R evenue Adjusted operating income Income before income taxes Net income attributable to owners of the parent Net income attributable to owners of the parent per share March 31, 2026 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 1,370,000 (0.1) 137,000 (5.5) 128,000 (4.6) 78,000 (4.2) 366.66 Notes: Changes in consolidated earnings forecast: Yes *N otes (1) Important changes in the scope of the consolidation during period: None (2) Changes in accounting policies; changes in accounting estimates [1] C hanges in accounting policies required by IFRS None [2] C hanges in accounting policies other than those in [1] None [3] C hanges in accounting estimates None (3) Number of outstanding shares (common shares) [1] N umber of outstanding shares (including treasury shares) December 2025 215,115,038 March 2025 215,115,038 [2] Number of treasury shares December 2025 2,378,491 March 2025 2,411,476 [3 ] Average number of common shares outstanding during the fiscal year (shares) December 2025 212,730,291 December 2024 212,697,957 R eview of the accompanying quarterly consolidated financial statements by a certified public accountant or auditing firm None Explanation on the appropriate use of results forecasts and other important items Any forward -looking statements in the report, including results forecasts, are based on certain assumptions that were deemed rational as well as information currently available to the Company at this time. However, various factors could cause actual results to differ materially. Please refer to ‘ ‘1. Management Performance and Financial Conditions , (2) Outlook for the Fiscal Year Ending March 2026’’ of the attachment for conditions serving as assumptions for results forecasts.
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) Index of the Attachment 1. Management Performance and Financial Conditions (1) Management Results .......................................................................................................................2 (2) Outlook for the Fiscal Year Ending March 2026 ...........................................................................5 (3) Analysis of Financial Condition .....................................................................................................7 2 . C onsolidated Financial Statements (1) Consolidated Balance Sheets ..........................................................................................................9 (2) C onsolidated Statements of Income and Comprehensive Income Consolidated Statements of Income .............................................................................................10 C onsolidated Statements of Comprehensive Income ...................................................................11 (3) Consolidated Statements of Changes in Equity ............................................................................12 (4) Consolidated Statements of Cash Flows .......................................................................................14 (5) Notes on Consolidated Financial Statements (Accounting standards complied with) .........................................................................................15 (Notes on the Preconditions for a Going Concern) ....................................................................15 (Segment Information) ...............................................................................................................15 1
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) 1. Management Performance and Financial Conditions (1) Management Results Under the three-year medium-term management plan “BUILDING THE FUTURE 2025”, which concludes in the fiscal year ending March 31, 2026, the Company is committed to the sustainable growth and enhancement of corporate value through four management strategies: [1] Delivering innovative solutions for customer needs; [2] Enhancing value chain business; [3] Expanding business in the Americas; and [4] Strengthening human capital and corporate capabilities. During the Q1-Q3 of the fiscal year (April 1, 2025 to December 31, 2025), revenue slightly decreased year on year to ¥979,349 million (a decrease of 1.2% year on year). While sales declined in the Americas OEM business and Oceania, sales remained strong in Europe, Asia, and our own developing business in North America. Driven in part by selling price increases in global markets implemented alongside continuous cost reductions, revenue increased year on year excluding foreign exchange effects. As for consolidated income items, although selling price increases contributed positively, the impact was more than offset by higher costs related to U.S. tariffs and growth investments, the unfavorable regional and product mix, and the effects of a stronger yen. As a result, an adjusted operating income decreased to ¥92,592 million (a decrease of 11.4% year on year). As for net income attributable to owners of the parent, despite improvements in financial income and expenses, the decrease in adjusted operating income led to a result of ¥56,206 million (a decrease of 9.2% year on year). On the other hand, due to the review of rental assets and other factors, operating cash flow and free cash flow increased year on year and remained solid. Incidentally, from the 4Q of the fiscal year ended March 31, 2024, the non-core businesses in the Specialized Parts & Service business segment are classified as discontinued operations in line with IFRS accounting standards. As a result, for the Q1-Q3 of the previous fiscal years, revenue, adjusted operating income, operating income, and income before income taxes are presented in amounts for continuing operations excluding discontinued operations, while net income and net income attributable to owners of the parent are presented as the sum of continuing operations and discontinued operation. Business results by segment are described below. 2
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) [1] Construction Machinery Business During the Q1-Q3 of the fiscal year under review, revenue was ¥881,891 million (a decrease of 2.0% year on year) and adjusted operating income was ¥84,953 million (a decrease of 9.9% year on year), resulting in a decrease in both revenue and income compared to the same period of the previous year. Sales were solid in Europe, Asia, and our own developing business in North America, and selling price increases helped support both revenue and adjusted operating income. Nevertheless, cost increases —including those related to U.S. tariffs —together with the unfavorable regional and product mix and the effects of yen appreciation negatively impacted results. [2] Specialized Parts & Service Business This segment consists primarily of Bradken Pty Limited and its subsidiaries, which are e ngaged in the parts and services business in the after -sales of mining facilities and m achinery, and H -E Parts International LLC and its subsidiaries, which provide ser vice solutions. During the Q1-Q3 of the fiscal year under review, revenue was ¥103,711 million (an increase of 6.0% year on year), while adjusted operating income was ¥7,639 million (a decrease of 24.8% year on year). The increase in revenue was primarily due to the acquisition of U.S.- based Brake Supply Co., Inc. in December 2024. However, the adjusted operating income decreased due to the impact of yen appreciation and investment restraint by some major customers and intensifying competitive conditions. T he above revenues of segments [1] and [2] are the figures before intersegment adjustments. 3
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) The following table summarizes consolidated net revenue by geographic area: (Millions of yen) FY2025 FY2024 Increase (Decrease) (April 1, 2025- Decembeｒ 31 , 2025) (April 1, 2024- December 31, 2024) Revenue Proportion Revenue Proportion (A)-(B) (A)/(B)-1 (A) (%) (B) (%) (%) North America 211,826 21.6 217,920 22.0 (6,094) (2.8) Central and South America 26,040 2.7 33,673 3.4 (7,633) (22.7) The Americas 237,866 24.3 251,593 25.4 (13,727) (5.5) Europe 133,226 13.6 108,953 11.0 24,273 22.3 Russia-CIS 11,240 1.1 12,872 1.3 (1,632) (12.7) Africa 62,279 6.4 64,478 6.5 (2,199) (3.4) Middle East 26,695 2.7 24,480 2.5 2,215 9.0 Russia-CIS, Africa, and the Middle East 100,214 10.2 101,830 10.3 (1,616) (1.6) Asia 89,755 9.2 84,325 8.5 5,430 6.4 India 62,107 6.3 60,762 6.1 1,345 2.2 Oceania 181,659 18.5 203,298 20.5 (21,639) (10.6) Asia and Oceania 333,521 34.1 348,385 35.1 (14,864) (4.3) China 17,977 1.8 23,754 2.4 (5,777) (24.3) Sub-total 822,804 84.0 834,515 84.2 (11,711) (1.4) Japan 156,545 16.0 156,762 15.8 (217) (0.1) Total 979,349 100.0 991,277 100.0 (11,928) (1.2) (Rounded off to the nearest million) Note: From the 4Q of the fiscal year ended March 31, 2024, the non-core businesses in the Specialized Parts & Service business segment are classified as discontinued operations. As a result, for the 1Q-3Q of the previous fiscal years, revenues are presented in amounts for continuing operations excluding discontinued operations. 4
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) (2) Outlook for the Fiscal Year Ending March 2026 During the Q1-Q3 of the fiscal year under review, demand for hydraulic excavators in Asia, Europe, North America, and other regions exceeded forecasts and remained strong. Although we had concerns about the impact of U.S. tariff policies on demand in the United States and other regions, domestic demand in the U.S. has been supported by data center construction and public works projects. Furthermore, no clear signs of impact on other regions have been observed at this time. Given this situation, we have revised upward our outlook for global annual demand for hydraulic excavators to approximately 216 thousand units (a decrease of 2% year on year), representing an upward revision from the forecast announced in October. In the mining sector, while prices for copper and gold are expected to remain firm, resource prices for coal, iron ore, and other commodities are weakening. Demand for new mining machinery is also expected to decrease year on year, with no change to the forecast. In addition, customers continue to maintain a cautious investment stance regarding maintenance investment. Based on the performance during the third quarter under review, which was supported by a resilient demand environment, reductions in material costs including cost‑down initiatives, and the progression of yen depreciation, we have revised upward our consolidated earnings forecast for the fiscal year ending March 2026 (April 1, 2025 to March 31, 2026). Regarding the increased costs associated with the application of U.S. tariff policies, we expect to absorb a certain portion through price increases. Although the business environment surrounding the Company remains uncertain, we will maintain our annual dividend plan of ¥175 per share, the same as the previous year, in light of the recent stable cash flow. The exchange rate assumptions for this earnings forecast for the fourth quarter are set to US dollar at ¥150, euro at ¥178, Chinese yuan at ¥21.3, Australian dollar at ¥99. I n April 2027, Hitachi Construction Machinery will change its name to "LANDCROS Corporation" and our new corporate brand will be "LANDCROS". Even after the trade name changes to "LANDCROS Corporation" the company will continue as always to directly address customer issues and provide high-quality products and services to realize the company's long-stated vision. We will continue to grow together with customers as a solutions provider that offers innovative solutions to customers. 5
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) Consolidated Earnings Forecast for the Full Year Ending March 31, 2026 R evenue Adjusted operating income Operating income Income before income taxes Net income attributable to owners of the parent Net income attributable to owners of the parent per share (basic) Previous forecast Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Yen 1,320,000 132,000 130,000 121,000 74,000 347.86 Forecast 1,370,000 137,000 137,000 128,000 78,000 366.66 Change 5,000 5,000 7,000 7,000 4,000 ― Change (%) 3.8 3.8 5.4 5.8 5.4 ― (Reference) FY2024 1,371,285 144,989 154,730 134,168 81,428 382.83 (Rounded off to the nearest million) N otes: Any forward-looking statements in the report, including results forecasts, are based on certain assumptions that were deemed rational as well as information currently available to the Company at this time. However, various factors may cause actual results to differ materially. 6
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) (3) Analysis of Financial Condition [1] Status of Assets, Liabilities, and Net Assets (Assets) Current assets amounted to ¥ 1,026,579 million, an increase of 2.6%, or ¥ 25,824 m illion, from the previous fiscal year -end. This was mainly due to a n increase of ¥ 57,257 million in inventories although there was a decrease of ¥ 19,719 million in cash and cash equivalents. Non-current assets amounted to ¥ 827,367 m illion, a n increase of 4.7%, or ¥ 37,116 million, from the previous fiscal year -end. This was mainly due to a n increase of ¥ 27,359 million in property, plant and equipment. As a result, total assets increased by 3.5%, or ¥ 62,940 million, from the previous fiscal year-end to ¥ 1,853,946 million. ( Liabilities) Current liabilities amounted to ¥ 609,708 million, a decrease of 0.6%, or ¥ 3,548 million, from the previous fiscal year-end. This was mainly due to a decrease of ¥ 11,127 million in bonds and borrowings and ¥ 5,825 million in t rade and other payables although there was an increase of ¥ 12,800 million in other financial liabilities. Non-current liabilities amounted to ¥ 320,990 million, an increase of 0.4%, or ¥ 1,192 million, from the previous fiscal year -end. This was mainly due to an increase of ¥ 2,255 million in deferred tax liabilities although there was a decrease of ¥ 1,243 million in lease liabilities. As a result, total liabilities de creased by 0.3%, or ¥ 2,356 million, from the previous fiscal year-end to ¥ 930,698 million. (E quity) Total equity in creased by 7.6%, or ¥ 65,296 million, from the previous fiscal year -end to ¥ 923,248 million. This was mainly due to retained earnings and upturn in foreign currency translation adjustments. 7
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) [2] Analysis of the Status of Consolidated Cash Flows Cash and cash equivalents at the end o f third quarter totaled ¥ 127,417 million, a decrease of ¥ 19,719 million from the beginning of the fiscal year. Statement and factors relating to each cash flow category are as follows: (N et cash provided by (used in) operating activities) Net cash provided by operating activities for the third quarter based on ¥ 63,169 million in net income, and included ¥ 51,683 million in depreciation, a ¥ 35,067 million decrease in trade receivables and contract assets, while ¥ 11,583 million in i nterest paid and ¥ 31,089 million in income tax paid as cash outflow. As a result, net cash provided by operating activities for the third quarter totaled to an in flow of ¥ 100,693 million, an increase inflow of ¥ 17,540 million year on year. (N et cash (provided by) used in investing activities) Net cash used in investing activities for the third quarter amounted to ¥ 33,371 million, a decrease of ¥ 18,555 million year on year. This was mainly due to an outlay of ¥ 28,954 million for capital expenditures and ¥ 5,826 million for acquisition of intangible assets. As a result, free cash flows, the sum of net cash provided by operating activities and net cash used in investing activities, amounted to an inflow of ¥ 67,322 million. (N et cash (provided by) used in financing activities) Net cash used in financing activities for the third quarter amounted to ¥ 98,484 million. While there was an increase of ¥ 15,167 million in proceeds from long- term debt and bond, this was mainly due to ¥ 36,323 million payments on long- term debt and bond , ¥ 47,170 million in dividends paid (including dividends paid to non -controlling interests) and a ¥ 17,602 million decrease in short-term debt, net. As a result, cash for financing activities for the third quarter produced an increased outflow of ¥ 65,144 million year on year. 8
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2. Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) As of As of (A)-(B) Dec. 31, 2025 (A) Mar. 31, 2025 (B) Assets Current assets Cash and cash equivalents 127,417 147,136 (19,719) Trade receivables 251,627 270,259 (18,632) Contract assets 984 623 361 Inventories 588,440 531,183 57,257 Income tax receivables 3,554 2,745 809 Other financial assets 29,832 31,324 (1,492) Other current assets 24,725 17,485 7,240 Total current assets 1,026,579 1,000,755 25,824 Non-current assets Property, plant and equipment 513,390 486,031 27,359 Right-of-use-asset 66,681 67,328 (647) Intangible assets 47,858 46,703 1,155 Goodwill 62,375 58,540 3,835 Investments accounted for using the equity method 28,400 25,968 2,432 Trade receivables 44,018 47,647 (3,629) Deferred tax assets 27,372 25,438 1,934 Other financial assets 30,040 26,296 3,744 Other non-current assets 7,233 6,300 933 Total non-current assets 827,367 790,251 37,116 Total assets 1,853,946 1,791,006 62,940 Liabilities Current liabilities Trade and other payables 227,941 233,766 (5,825) Lease liabilities 11,648 12,166 (518) Contract liabilities 13,422 14,647 (1,225) Bonds and borrowings 315,566 326,693 (11,127) Income taxes payable 6,774 9,622 (2,848) Other financial liabilities 24,718 11,918 12,800 Other current liabilities 9,639 4,444 5,195 Total current liabilities 609,708 613,256 (3,548) Non-current liabilities Trade and other payables 1,460 2,317 (857) Lease liabilities 59,156 60,399 (1,243) Contract liabilities 8,296 8,284 12 Bonds and borrowings 210,246 211,165 (919) Retirement and severance benefit 21,552 20,404 1,148 Deferred tax liabilities 14,116 11,861 2,255 Other financial liabilities 1,308 1,143 165 Other non-current liabilities 4,856 4,225 631 Total non-current liabilities 320,990 319,798 1,192 Total liabilities 930,698 933,054 (2,356) Equity Equity attributable to owners of the parent Common stock 81,577 81,577 - Capital surplus 75,863 75,768 95 Retained earnings 597,738 580,257 17,481 Accumulated other comprehensive income 119,037 74,768 44,269 Treasury stock, at cost (2,994) (3,033) 39 Total Equity attribute to owners of the parent 871,221 809,337 61,884 Non-controlling interests 52,027 48,615 3,412 Total equity 923,248 857,952 65,296 Total liabilities and equity 1,853,946 1,791,006 62,940 9 (English translation of “KESSAN TANSHIN” originally issued in the Japanese language.)
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(2) Consolidated Statements of Income and Comprehensive Income Consolidated cumulative quarter Consolidated Statements of Income (Millions of yen) Nine months ended Nine months ended (A)/(B)×100 (%) Dec. 31, 2025 (A) Dec. 31, 2024 (B) Continuing operations Revenue 979,349 991,277 99 Cost of sales (679,224) (676,617) 100 Gross profit 300,125 314,660 95 Selling, general and administrative expenses (207,533) (210,172) 99 Adjusted operating income 92,592 104,488 89 Other income 18,384 21,308 86 Other expenses (12,820) (9,719) 132 Operating income 98,156 116,077 85 Financial income 4,476 4,769 94 Financial expenses (13,333) (23,149) 58 Share of profits of investments accounted for using the equity method 2,673 2,529 106 Income before income taxes 91,972 100,226 92 Income taxes (28,803) (32,305) 89 Net income from continuing operations 63,169 67,921 93 Discontinued operations Net income from discontinued operations - 1,417 - Net income 63,169 69,338 91 Net income attributable to Owners of the parent 56,206 61,878 91 Non-controlling interests 6,963 7,460 93 63,169 69,338 91 EPS attributable to owners of the parent Continuing operations 264.21 284.26 93 Discontinued operations - 6.66 - Net income per share (Basic) (yen) 264.21 290.92 91 Continuing operations 264.21 284.26 93 Discontinued operations - 6.66 - Net income per share (Diluted) (yen) 264.21 290.92 91 (Rounded off to the nearest million) Total net income 10 (English translation of “KESSAN TANSHIN” originally issued in the Japanese language.)
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Consolidated Statements of Comprehensive Income (Millions of yen) Nine months ended Nine months ended (A)/(B)×100 (%) Dec. 31, 2025 (A) Dec. 31, 2024 (B) Net income 63,169 69,338 91 Other comprehensive income Items that cannot be reclassified into net income 2,791 833 335 Remeasurements of defined benefit obligations 112 - - Items that can be reclassified into net income Foreign currency translation adjustments 43,850 12,914 340 Cash flow hedges (23) 186 - Other comprehensive income of equity method associates 1,460 (434) - Other comprehensive income, net of taxes 48,190 13,499 357 Comprehensive income 111,359 82,837 134 Comprehensive income attributable to Owners of the parent 101,103 74,314 136 Non-controlling interests 10,256 8,523 120 (Rounded off to the nearest million) Net gains and losses from financial assets measured at fair value through OCI 11 (English translation of “KESSAN TANSHIN” originally issued in the Japanese language.)
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(3) Consolidated Statements of Changes in Equity Consolidated cumulative quarter For the nine months ended Dec. 31, 2025 (Millions of yen) Common stock Capital surplus Retained earnings Remeasurements of defined benefit obligations Net gains and losses from financial assets measured at fair value through OCI Cash flow hedges Balance at beginning of period 81,577 75,768 580,257 2,286 9,965 (195) Net income 56,206 Other comprehensive income 111 2,791 (51) Comprehensive income - - 56,206 111 2,791 (51) Acquisition of treasury stock Dividends to stockholders of the Company (39,353) Share-based payment transactions 95 Decrease in capital of consolidated subsidiaries Transfer to retained earnings 628 (628) Change in liabilities for written put options over non-controlling interests Transaction with owners - 95 (38,725) - (628) - Balance at end of period 81,577 75,863 597,738 2,397 12,128 (246) (Millions of yen) Foreign currency translation adjustments Total Balance at beginning of period 62,712 74,768 (3,033) 809,337 48,615 857,952 Net income - 56,206 6,963 63,169 Other comprehensive income 42,046 44,897 44,897 3,293 48,190 Comprehensive income 42,046 44,897 - 101,103 10,256 111,359 Acquisition of treasury stock - (3) (3) (3) Dividends to stockholders of the Company - (39,353) (6,844) (46,197) Share-based payment transactions - 42 137 137 Decrease in capital of consolidated subsidiaries - - - Transfer to retained earnings (628) - - Change in liabilities for written put options over non-controlling interests - - - Transaction with owners - (628) 39 (39,219) (6,844) (46,063) Balance at end of period 104,758 119,037 (2,994) 871,221 52,027 923,248 Equity attributable to owners of the parent A ccumulated other comprehensive income Equity attributable to owners of the parent Non-controlling interests Total equity A ccumulated other comprehensive income Treasury stock, at cost Total 12 (English translation of “KESSAN TANSHIN” originally issued in the Japanese language.)
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For the nine months ended Dec. 31, 2024 (Millions of yen) Common stock Capital surplus Retained earnings Remeasurements of defined benefit obligations Net gains and losses from financial assets measured at fair value through OCI Cash flow hedges Balance at beginning of period 81,577 75,965 526,307 (396) 8,660 (194) Net income 61,878 Other comprehensive income 833 166 Comprehensive income - - 61,878 - 833 166 Acquisition of treasury stock Dividends to stockholders of the Company (27,650) Share-based payment transactions 104 Decrease in capital of consolidated subsidiaries (318) Transfer to retained earnings Change in liabilities for written put options over non-controlling interests 17 Transaction with owners - (197) (27,650) - - - Balance at end of period 81,577 75,768 560,535 (396) 9,493 (28) (Millions of yen) Foreign currency translation adjustments Total Balance at beginning of period 74,530 82,600 (3,069) 763,380 51,033 814,413 Net income - 61,878 7,460 69,338 Other comprehensive income 11,437 12,436 12,436 1,063 13,499 Comprehensive income 11,437 12,436 - 74,314 8,523 82,837 Acquisition of treasury stock - (2) (2) (2) Dividends to stockholders of the Company - (27,650) (7,454) (35,104) Share-based payment transactions - 40 144 144 Decrease in capital of consolidated subsidiaries - (318) (4,022) (4,340) Transfer to retained earnings - - - Change in liabilities for written put options over non-controlling interests - 17 (16) 1 Transaction with owners - - 38 (27,809) (11,492) (39,301) Balance at end of period 85,967 95,036 (3,031) 809,885 48,064 857,949 Equity attributable to owners of the parent A ccumulated other comprehensive income Equity attributable to owners of the parent Non-controlling interests Total equity A ccumulated other comprehensive income Treasury stock, at cost Total 13 (English translation of “KESSAN TANSHIN” originally issued in the Japanese language.)
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(4) Consolidated Statements of Cash Flows Consolidated cumulative quarter (Millions of yen) Nine months ended Nine months ended Dec. 31, 2025 (A) Dec. 31, 2024 (B) Net income 63,169 67,921 Net income from discontinued operations - 1,417 Depreciation 51,683 48,317 Amortization of intangible asset 7,127 6,982 Impairment losses 15 2,195 Income tax expense 28,803 32,372 Equity in net earnings of associates (2,673) (2,529) (Gain) loss on sales of property, plant and equipment (148) (1,019) Financial income (4,476) (4,769) Financial expense 13,333 23,173 (Increase) decrease in trade receivables and contract assets 35,067 66,962 (Increase) decrease in lease receivables 1,579 686 Increase (decrease) in inventories (10,553) (1,421) (Increase) decrease in trade payables (4,648) (24,827) Increase (decrease) in retirement and severance benefit 477 (180) Other (41,820) (82,466) Subtotal 136,935 132,814 Interest received 3,978 4,083 Dividends received 2,452 1,560 Interest paid (11,583) (13,754) Income tax paid (31,089) (41,550) Net cash provided by (used in) operating activities 100,693 83,153 Capital expenditures (28,954) (25,988) Proceeds from sale of property, plant and equipment 258 1,437 Acquisition of intangible assets (5,826) (9,812) (1,256) (1,158) 2,087 - (Increase) decrease in short-term loan receivables, net 192 (17) Collection of long-term loan receivables 236 47 Payments for transfer of business - (16,414) Other (108) (21) Net cash (provided by) used in investing activities (33,371) (51,926) (Increase) decrease in short-term debt, net (17,602) 31,673 Proceeds from long-term debt and bond 15,167 47,911 Payments on long-term debt and bond (36,323) (60,384) Payments on lease payables (9,956) (11,919) Dividends paid to owners of the parent (39,348) (27,644) Dividends paid to non-controlling interests (7,822) (7,761) Payments for acquisition of shares of subsidiaries from non-controlling interests - (3,623) Payments for a paid-in capital reduction to non-controlling interests (2,597) (1,591) Other (3) (2) Net cash (provided by) used in financing activities (98,484) (33,340) Effect of exchange rate changes on cash and cash equivalents 11,443 1,741 Net (increase) decrease in cash and cash equivalents (19,719) (372) Cash and cash equivalents at beginning of period 147,136 143,530 Cash and cash equivalents at end of period 127,417 143,158 Acquisition of investments in securities and other financial assets (including investments in associates) Sales of investments in securities and other financial assets (including investments in associates) 14 (English translation of “KESSAN TANSHIN” originally issued in the Japanese language.)
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) (5) Notes on Consolidated Financial Statements ( Accounting standards complied with) While the Company's quarterly financial statements (consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of changes in equity, and consolidated statements of cash flows) have been prepared in accordance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements, etc. of the Tokyo Stock Exchange, Inc., certain disclosures and notes required by IAS 34 have been omitted. Therefore, these financial statements are not a set of condensed financial statements in accordance with IAS 34. ( Notes on the Preconditions for a Going Concern) There are no relevant items. ( Segment Information) 1) Overview of business segments The operating segments of the Group are the components for which separate financial information is available and that are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The reportable segments are determined based on the operating segment. Taking into consideration the nature of products and services as well as categories, types of customers, and economic characteristics in a comprehensive manner, the Company determines to classify two reportable segments as follows: The Construction Machinery Business Segment primarily intends to provide customers with a series of total life cycle solutions related to construction machinery such as the manufacture and sale of hydraulic excavators, ultra-large hydraulic excavators, and wheeled loaders, as well as the sale of parts related to these products. The Specialized Parts Service Business Segment primarily intends to provide services, production, and distribution parts that are not included in the Construction Machinery Business Segment. From the 4Q of the fiscal year ended March 31, 2024, the non- core businesses in the Specialized Parts & Service business segment are classified as discontinued operations. As a result, for the 3Q of previous fiscal year, we only have presented amounts of continuing operations excluding amounts of discontinued operations. 15
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) 2) Revenue, profit or loss, and other items of business segments For the nine months ended Dec. 31, 2025 (Millions of yen) Reportable segment Adjustments (*1,2) Total Construction Machinery Business Specialized Parts & Service Business Total Revenue External customers Intersegment transactions 881,841 50 97,508 6,203 979,349 6,253 - (6,253) 979,349 - Total revenues 881,891 103,711 985,602 (6,253) 979,349 Adjusted operating income 84,953 7,639 92,592 - 92,592 Operating income 90,634 7,522 98,156 - 98,156 Financial income Financial expenses Share of profits of investments accounted for using the equity method - - 2,673 - - - - - 2,673 4,476 (13,333) - 4,476 (13,333) 2,673 Income (loss) before income taxes 93,307 7,522 100,829 (8,857) 91,972 Note (*1): Adjustments represent eliminations of intersegment transactions and amounts of companies that do not belong to any operating segment. Note (*2): Intersegment transactions are recorded at the same prices used in arm’s length transactions. 16
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(English translation of “KESSAN TANSHIN” originally issued in the Japanese language.) For the nine months ended Dec. 31, 2024 (Millions of yen) Reportable segment Adjustments (*1,2) Total Construction Machinery Business Specialized Parts & Service Business Total Revenue External customers Intersegment transactions 900,186 60 91,091 6,716 991,277 6,776 - (6,776) 991,277 - Total revenues 900,246 97,807 998,053 (6,776) 991,277 Adjusted operating income 94,331 10,157 104,488 - 104,488 Operating income 106,692 9,385 116,077 - 116,077 Financial income Financial expenses Share of profits of investments accounted for using the equity method - - 2,529 - - - - - 2,529 4,769 (23,149) - 4,769 (23,149) 2,529 Income (loss) before income taxes 109,221 9,385 118,606 (18,380) 100,226 Note (*1): Adjustments represent eliminations of intersegment transactions and amounts of companies that do not belong to any operating segment. Note (*2): Intersegment transactions are recorded at the same prices used in arm’s length transactions. 17