Hitachi
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Hitachi (6501) investor relations material

Hitachi Q1 2027 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2027 earnings summary29 Jul, 2026

Executive summary

  • First quarter FY2026 revenue rose 20% year-on-year to ¥2,709.6 billion, driven by business expansion, favorable foreign exchange effects, and strong performance across all sectors, especially Energy.

  • Adjusted EBITA and revenue reached record Q1 highs; net income attributable to shareholders was ¥203.1 billion, with core free cash flow and comprehensive income both increasing year-over-year.

  • All four sectors (DSS, Energy, Mobility, Connective Industries) achieved double-digit revenue growth, with Energy and Mobility leading.

  • The acquisition of Clever Devices was completed, expanding the Mobility segment's digital capabilities.

  • Share buybacks in Q1 totaled about ¥148.0 billion, representing 27% of the full-year target, and dividends paid to shareholders totaled ¥121.6 billion.

Financial highlights

  • Q1 revenue: ¥2,709.6 billion (+20% YoY); adjusted EBITA: ¥323.5 billion (+86.0 billion YoY), margin 11.9% (+140 bps YoY); gross profit increased 22% to ¥809.7 billion.

  • Net income: ¥203.1 billion; core free cash flow: ¥365.0 billion (+13.6 billion YoY); basic EPS grew 1% to ¥42.24.

  • Cash and cash equivalents increased by ¥181.0 billion to ¥1,504.5 billion; net cash provided by operating activities was ¥496.2 billion.

  • Full-year revenue forecast raised to ¥11,700.0 billion (+11% YoY), adjusted EBITA to ¥1,520.0 billion, and net income to ¥900.0 billion.

  • Lumada business accounted for 43% of consolidated revenue in Q1, with a 22% year-on-year increase planned for FY2026.

Outlook and guidance

  • Full-year forecasts for revenue, adjusted EBITA, net income, core free cash flow, and ROIC were raised, with consolidated revenue, adjusted EBITA, and net income guidance increased by ¥600.0 billion, ¥100.0 billion, and ¥50.0 billion, respectively.

  • CAPEX for FY2026 is expected to reach ¥670.0 billion, mainly in the Energy sector; Q1 CAPEX was ¥131.1 billion.

  • Shareholder returns for FY2026 include a planned ¥550.0 billion share buyback and ¥250.0 billion in dividends.

  • Foreign exchange assumptions revised to JPY 160/USD and JPY 185/EUR for Q2 onward.

  • Management highlights ongoing risks from global economic conditions, exchange rates, and raw material prices.

Rationale for Clever Devices acquisition
EBIT and adjusted operating income divergence
Drivers of higher treasury stock acquisitions
De-risking strategy for large EPC projects
Plan for 30% AI productivity growth by FY2027
HMAX revenue contribution from the CI sector
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