Bosses at the train manufacturer told in latest accounts how it is ‘investing so it can adapt to a changing market’
The Hitachi rail factory at Newton Aycliffe(Image: Hitachi)
Train manufacturer Hitachi Rail saw revenues rise but profits fall in a year in which it said it was continuing investment to “adapt to a changing market”. Hitachi, which has a massive 474,000 sq ft plant in Newton Aycliffe, County Durham, has posted accounts for the year ended March 2025 in which revenues rose from £725.1m to £748.4m on the back of higher revenues in operations, service and maintenance.
But the previous year’s operating profit of £5.2m was converted to a loss of £61.9m, a result of the impact of a significant impairment charge made in relation to one particular product. The company makes and supplies rolling stock, railway maintenance and traffic management systems to a host of clients, including ‘British bullet trains’ for HS2 Ltd, battery hybrid trains for Arriva’s Grand Central service, Transpennine Express and East Midlands Railway.
And during the year it said it had “made changing assumptions” over its AT300 SXR Platform development – a specific variant of Hitachi Rail’s AT300 series of trains, which it developed for East Midlands Railway, resulting in the business recognising an impairment charge of £88.5m.
While orders for the particular product could be made in the future, directors said in the accounts: “In the year ending 31 March 2025 a change in assumptions for new market opportunities and new contracts awarded to the company based on a new AT300 platform resulted in a requirement to complete an impairment assessment of the AT300 SXR Platform development. This assessment compared the value in use with the carrying value.”
A breakdown of revenue showed £115.9m came from long term construction contracts and £632.5m from rendering of services. Employee numbers, meanwhile, rose to 2,636, up from 2,610, and an interim dividend of £56.3m was paid.
The Hitachi manufacturing site at Newton Aycliffe(Image: Hitachi)
The accounts also show it made a capital injection in Hitachi ZeroCarbon Limited of £5m, increasing the book value of the investment to £24.99m. Within the report, directors said: “The company continues to explore opportunities for growth and development through bidding for new projects and potential acquisitions.
“The company is investing so it can adapt to a changing market. This includes a greater strategic focus on growth opportunities in digital and green mobility, supported by successfully trialling digital infrastructure monitoring solutions on the UK rail network and developing pioneering battery train technology.
“On 31 May 2024, the company acquired the entire share capital of Centelec UK Limited from Thales SAcfor the acquisition of the Thales’ Ground Transportation Systems (GTS) business. In January 2025, the company agreed to acquire the digital rail monitoring business Omnicom from Balfour Beatty. These acquisitions strengthen the strategic focus on digitalisation and sustainability transformation.”
The company added that it had access to “an uncommitted £415,000,000 Hitachi Group Treasury loan facility and total cash available to the company including the loan facility is in excess of forecast cash requirements for the year. The company’s ultimate parent Hitachi Ltd has also provided a letter of support to 30 June 2026.”
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