Hitachi (6501) Q2 2027 earnings summary

Executive summary

• Q2 FY2026 revenue rose 15% YoY to ¥2,904.4bn, or 10% excluding FX; all four sectors grew revenue and profit, setting second-quarter records for revenue and adjusted EBITA.

• H1 revenue increased 17% to ¥5,614.0bn; adjusted EBITA reached ¥699.6bn with a 12.5% margin, while adjusted operating income rose 27% to ¥643.260bn.

• FY2026 guidance rose to ¥12,000bn revenue, ¥1,560bn adjusted EBITA and ¥920bn net income.

Financial highlights

• Q2 adjusted EBITA increased ¥51.8bn YoY to ¥376.1bn; margin was 12.9%, up 10 bps.

• H1 adjusted EBITA rose ¥137.8bn to ¥699.6bn; margin reached 12.5%, up 80 bps.

• H1 net income attributable to parent stockholders fell 12% to ¥416.6bn, partly reflecting prior-year reorganization gains and an air-conditioning JV sale.

• H1 operating cash flow increased to ¥798.9bn; free cash flow was ¥677.3bn versus ¥763.0bn a year earlier.

• H1 core FCF was ¥531.5bn, down ¥20.0bn YoY; excluding a prior-year ¥63.2bn special dividend, it increased ¥29.6bn.

Outlook and guidance

• FY2026 revenue guidance rose ¥300bn to ¥12,000bn (+13% reported; +11% normalized); adjusted EBITA rose ¥40bn to ¥1,560bn and net income rose ¥20bn to ¥920bn.

• Adjusted EBITA margin is forecast at 13.0%, up 60 bps reported; normalized margin improvement is 120 bps.

• Basic EPS is forecast at ¥206.41 and ROIC at 13.5%.

• Core FCF is forecast at ¥920bn; excluding the estimated ¥340bn effect of large advances, the forecast implies a ¥90bn YoY increase.

• Net income is expected to rise ~¥120bn YoY despite prior-year restructuring impacts; core FCF growth is expected with a 100% cash conversion ratio.