⚠ A Cyclical IndustryModerate threat

ITOCHU (8001) — threat to the moat

A third of a construction-equipment maker is a third of its cycle.

Construction machinery sales depend on construction and mining activity worldwide. ITOCHU's larger stake1 increases its exposure to that cycle.

Machinery division net profit (¥ bn, years to March)131.62024136.52025155.62026ITOCHU results and FIR 2025
The division ITOCHU is adding to is already its largest.

The first quarter's contribution included a tax benefit from the step-up2, which will not recur.

The Machinery division's plan was raised from ¥180.0 billion to ¥220.0 billion in August 20263, partly on the Hitachi stake. The plan assumes the cycle holds.

The measure is the contribution in a year without one-off items. A fall in a construction downturn would show the cyclical exposure ITOCHU has added.

References
  1. ReportedITOCHU's larger stake increases its exposure to that cycle.
    ITOCHU Corporation, completion of the additional acquisition of shares in Hitachi Construction Machinery, 15 April 2026. — April 2026 · publ. 15 April 2026 · source ↗
  2. ReportedThe first quarter's contribution included a tax benefit from the step-up, which will not recur.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  3. ReportedThe Machinery division's plan was raised from ¥180.0 billion to ¥220.0 billion in August 2026, partly on the Hitachi stake.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
Sources
Generated September 24, 2026