Hitachi (6501) Q2 2026 earnings summary

Executive summary

• Q2 FY2025 delivered record highs in consolidated revenue, adjusted EBITDA/EBITA, and quarterly profit, led by strong Energy power grid and domestic IT business performance, with significant growth in core free cash flow and net income, partly due to the HVAC JV share transfer.

• Full-year FY2025 outlook was revised upward for revenue, profit, cash flow, and ROIC, reflecting robust performance in Energy, Mobility, and Connected Industries, despite U.S. tariffs and increased strategic investments.

• Revenues for the six months ended September 30, 2025, rose 5% year-on-year to ¥4,787.4 billion, with net income up 56% to ¥493.6 billion.

• Comprehensive income surged to ¥557.5 billion from ¥61.4 billion year-on-year, reflecting strong operational and financial performance.

Financial highlights

• Q2 FY2025 revenue rose 8% year-on-year to ¥2,529.0 billion, with adjusted EBITA up ¥86.2 billion to ¥324.2 billion (12.8% margin, +2.6 pts YoY); net income attributable to shareholders increased by ¥163.7 billion to ¥280.6 billion.

• Gross profit increased 10% year-on-year to ¥1,425.8 billion, and adjusted operating income rose 26% to ¥508.0 billion.

• Core free cash flow increased year-on-year, even excluding temporary impacts from capital reorganization, reaching ¥200.1 billion in Q2.

• Total assets at Q2-end were approximately JPY 13.9 trillion, up JPY 600 billion from the previous fiscal year; cash and cash equivalents at period end were ¥1,278.9 billion, up ¥412.7 billion from March 31, 2025.

• Europe and North America revenues grew 17% and 10% year-on-year, respectively, driven by large-scale power grid projects.

Outlook and guidance

• Full-year forecasts for revenue, profit, cash flow, and ROIC revised upward, with revenue expected to grow 7% year-on-year (excluding FX), led by Energy and DSS.

• FY2025 guidance raised: revenue +¥200.0 billion, adjusted EBITA +¥100.0 billion, net income +¥40.0 billion, core FCF +¥160.0 billion; adjusted EBITA margin expected at 11.7% (+0.6 pts YoY), ROIC at 11.5%.

• Management highlights ongoing transformation into a digital-centric company and expects continued growth in Social Innovation Business.

• Forward-looking statements caution on risks from economic, market, and regulatory uncertainties.

• Core free cash flow is projected to rise year-on-year, even as CapEx increases.