Hitachi (6501) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 saw record-high adjusted EBITDA/EBITA, strong revenue and profit growth, and significant core/free cash flow increases, led by Energy and Mobility, despite FX and U.S. tariff headwinds.

• Revenues for the quarter ended June 30, 2025, rose 2% year-on-year to ¥2,258.3 billion, with net income up 7% to ¥200.4 billion.

• Comprehensive income declined sharply to ¥121.6 billion from ¥459.3 billion year-on-year, mainly due to negative foreign currency translation adjustments.

• Lumada business continues rapid expansion, especially in Energy, with digital services and asset digitization progressing across all sectors.

• Free cash flow improved significantly, reaching ¥367.7 billion compared to a negative ¥91.3 billion in the prior year period.

Financial highlights

• Q1 FY2025 revenues: ¥2,258.3bn (+2% YoY, +5% excl. FX); adjusted EBITA: ¥237.5bn (+¥13.2bn YoY); margin: 10.5% (+0.4 pts YoY).

• Net income attributable to shareholders: ¥192.2bn (+¥16.8bn YoY); core FCF: ¥351.4bn (+¥280.4bn YoY, driven by large project advances).

• Total assets at Q1-end were JPY 13.49 trillion, stable from previous year-end.

• Cash and cash equivalents at quarter-end were ¥1,242.2 billion, up ¥397.0 billion from the prior year.

• European business expanded 17% year-on-year, while China declined 16%.

Outlook and guidance

• FY2025 expects continued DX and GX demand momentum, with revenue and profit growth despite FX and tariff headwinds.

• FY2025 guidance: revenues ¥10,100.0bn (+3% YoY), adjusted EBITA ¥1,110.0bn (+¥26.4bn YoY), net income ¥710.0bn (+¥94.2bn YoY), core FCF ¥640.0bn.

• Core FCF forecasted to decrease YoY due to prior year advances and increased CAPEX; ROIC expected to remain flat at 11%.

• Full-year forecast maintained due to business environment uncertainty.

• FX sensitivity: every ¥1 depreciation vs USD/Euro impacts revenues by ¥10.0bn/¥6.5bn and EBITA by ¥1.0bn/¥0.5bn.