Hitachi (6501) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 saw increased revenues and profits, with record-high adjusted EBITDA/EBITA and core free cash flow, despite FX fluctuations and U.S. tariffs.

• Energy and Mobility sectors drove growth, supported by strong GX demand and strategic investments.

• Lumada business expanded rapidly, especially in Energy, with digital services and asset digitization progressing across all sectors.

• Revenues for the quarter ended June 30, 2025, rose 2% year-over-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-over-year, mainly due to negative foreign currency translation adjustments.

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).

• Adjusted operating income increased to ¥211.0 billion from ¥197.6 billion year-over-year.

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

• Q1 consolidated revenues and adjusted EBITDA/EBITA exceeded internal plans.

Outlook and guidance

• FY2025 revenues expected to rise 6% (excluding FX); adjusted EBITDA/EBITA and net income projected to increase year-on-year.

• Core free cash flow forecasted to decrease due to prior year’s advanced payments and increased CAPEX; full-year forecast maintained due to environmental uncertainty.

• ROIC forecasted at 11% for FY2025, flat YoY; WACC decrease leading to higher ROIC spread.

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