Hitachi Rail Reports Revenue Growth Despite Profit Setback
Hitachi Rail has reported a rise in revenues for the year ending March 2025, even as profits took a hit due to continued investment and strategic adjustments. The train manufacturer, which operates a 474,000 sq ft facility in Newton Aycliffe, County Durham, saw revenue increase from £725.1m to £748.4m, driven by higher income from operations, services, and maintenance.
However, operating profit fell sharply from £5.2m the previous year to a loss of £61.9m. The decline was largely due to a significant impairment charge related to the AT300 SXR Platform, a variant of Hitachi Rail’s AT300 series developed for East Midlands Railway.
The company recorded an £88.5m impairment after revising its assumptions on market opportunities and future contracts for this product.
While future orders remain possible, directors explained that the reassessment compared the platform’s value in use with its carrying value.
Hitachi Rail continues to supply rolling stock, railway maintenance, and traffic management systems to a wide range of clients, including HS2 Ltd’s high-speed trains, battery hybrid trains for Arriva’s Grand Central service, TransPennine Express, and East Midlands Railway.
Revenue breakdown showed £115.9m from long-term construction contracts and £632.5m from services. Staff numbers increased slightly to 2,636, up from 2,610, and the company paid an interim dividend of £56.3m.
Investment remains a key focus. Hitachi Rail injected £5m into Hitachi ZeroCarbon Limited, raising the book value of the investment to £24.99m, and continued pursuing opportunities in digital and green mobility. Initiatives include trialling digital infrastructure monitoring solutions on the UK rail network and developing innovative battery train technology.
The company also strengthened its strategic focus on digitalisation and sustainability through acquisitions. In May 2024, it acquired Centelec UK Limited from Thales, including the Thales Ground Transportation Systems business, and in January 2025, it acquired Omnicom, a digital rail monitoring business from Balfour Beatty.
Directors noted that these moves position Hitachi Rail to adapt to a changing market, pursue growth, and capitalise on opportunities in digital and green transport.