Hitachi (6501) Hitachi Energy Investor Day 2026 summary

Market outlook and growth opportunities

• Electricity’s share of global energy consumption is projected to rise from 20% in 2020 to 42% in 2050, as total energy consumption doubles.

• Global TSO capital expenditure is projected at $2.4T for 2026-2035; the energy supercycle is expected to continue for ~10-15 years.

• Addressable market expected to reach $400B by 2030, with ~7% CAGR for 2025-2030 and 5% for 2030-2035; market nearly doubles from 2025 to 2035.

• 2020-2050 demand projections include HVDC 4x, battery storage >10x, power electronics 6-8x and software solutions >6x.

• Adjacent edge market projected at ~$130B by 2035: ~$60B core substations and ~$70B new offerings, serving utilities, industry and data centers.

Financial performance and outlook

• H1 FY2026 revenue $11.0B, up 20% nominally; adjusted EBITA margin 15.4% vs. 12.9% H1 FY2025, and ROIC 54.4% vs. 41.7%.

• FY2030 targets raised vs. October 2025: revenue $38B+ and mid-teens FY2024-2030 CAGR; adjusted EBITA margin 19-21% vs. prior 16-17%; ROIC 30-40% vs. 25-30%.

• Backlog exceeded $65B in H1 FY2026, more than 4x FY2021; margin ~7% higher vs. FY2022 and 3-5 years of revenue visibility.

• Average cash flow conversion targeted above 90%; disciplined capacity investment aims to support growth with lower capital intensity.

Strategy and capacity expansion

• Five priorities: convert backlog, expand capacity, improve efficiency with AI, grow technology-enabled services, and launch end-to-end offerings through partnerships and M&A.

• More than 40 capacity projects underway; $9B investment planned for FY2020-2027 across manufacturing, M&A and partnerships; workforce additions of 5,000+ annually in FY2025-2027.

• Revenue projected to grow at ~16% CAGR from FY2020 to FY2030, reaching ~$38B; backlog projected to grow at ~25% CAGR to ~$60B.

• AI optimization ambition raised by $100M from the June 2026 announcement to $350M+ annual adjusted EBITA by FY2030; automation and AI also target +20% factory throughput.

• Service revenue targeted to grow at 15-20% CAGR from FY2024 to FY2030, supported by HMAX Energy, Shermco synergies, R&D, partnerships and M&A.