Hitachi (6501) Q1 2027 earnings summary

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.