Hitachi (6501) Investor Day 2026 summary

CEO remarks and strategic direction

• Achieved record highs in profit, core free cash flow, and ROIC in FY 2025, with a 24% YoY increase in order backlog to JPY 21 trillion, driven by social infrastructure innovation, Lumada business expansion, and strong demand in data centers, semiconductors, IT, and defense systems.

• EPS grew by approximately 32% year-on-year, and backlog expansion provides a solid revenue foundation.

• AI is positioned as a major growth opportunity, with a focus on leveraging IT, OT, and product integration for physical AI in energy, mobility, and industry.

• HMAX recurring digital service recorded JPY 300 billion in sales at over 20% EBITDA margin, expected to continue high growth.

• Management priorities remain: accelerate HMAX and Lumada expansion, disciplined growth investment, and deepened governance.

FY2025 achievements and business transformation

• Accelerated transformation toward a Lumada business model, raising Lumada revenue ratio by 11 points YoY and adjusted EBITA margin by 1 point YoY; launched HMAX global digital services.

• Executed disciplined growth investments (¥175.3B), expanded Energy services in North America, and strengthened AI development for HMAX expansion.

• Delivered record-high shareholder returns (¥557.2B, up ¥167.8B YoY) and enhanced risk management and governance.

• Modernizing 15,000 customer IT systems in Japan, with 35,000 system engineers enabled by AI to drive high-reliability transformation.

• Stable growth underpinned by infrastructure renewal and modernization demand, with continuous upgrades to operations and digitalization.

Growth opportunities and AI-driven strategy

• Identified significant AI-driven market opportunities: power grid maintenance (¥15T by 2035), railway AI applications (¥3T by 2030), and frontline worker support (¥10T by 2030).

• Deploying Physical AI to mission-critical social infrastructure, leveraging domain knowledge and on-the-ground expertise in 190 countries.

• HMAX is being horizontally scaled across sectors, leveraging proprietary edge AI semiconductors and partnerships to expand into non-Hitachi assets.

• Customer receptivity to AI and digitalization is accelerating, driving faster adoption of HMAX and related solutions.

• Expansion into new business models such as energy-as-a-service and increased focus on data sovereignty and edge AI to address customer needs.