Hitachi (6501) Q3 2025 earnings summary

Executive summary

• Revenues and profits increased across Digital Systems & Services (DSS), Green Energy & Mobility (GEM), and Connective Industries (CI), driven by strong demand in power grid renewals, renewable energy, and digital transformation projects.

• Net income attributable to shareholders was JPY 138.5 billion in Q3 FY24, down year-on-year due to a prior-year gain from the Hitachi Astemo share sale and current-year forex losses.

• Upward revisions were made to full-year forecasts for revenues, adjusted EBITDA, net income, core free cash flows, and ROIC, with almost all Mid-term Management Plan KPIs expected to be achieved.

• Revenue for the nine months ended December 31, 2024, was JPY 7,011.2 billion, a 3% decrease year-on-year, while comprehensive income declined to JPY 598.0 billion.

• Cash and cash equivalents increased by JPY 303.9 billion to JPY 1,009.3 billion as of December 31, 2024.

Financial highlights

• Q3 FY24 consolidated revenues were JPY 2,465.2 billion (+9% YoY); adjusted EBITDA increased 34% year-on-year, with a margin improvement to 12%.

• Adjusted operating income rose 25% to JPY 654.9 billion year-over-year; EBIT remained stable at JPY 667.6 billion.

• Core free cash flow increased by JPY 50 billion to JPY 205.6 billion, mainly from advance payments for large projects.

• Shareholder returns, including buybacks, are set at JPY 389.2 billion, up JPY 140 billion year-on-year.

• Total assets at quarter-end were JPY 13.6 trillion, up JPY 1.4 trillion year-on-year.

Outlook and guidance

• FY2024 forecasts were revised upward for GEM and DSS, with all three sectors expected to exceed prior-year growth rates.

• Revenues for the three sectors are forecast at JPY 9.7 trillion, up 11% year-on-year, even excluding forex effects.

• Adjusted EBITDA margin is projected at 11.4%, a 1.4-point improvement year-on-year.

• Consolidated net income forecast is JPY 610 billion, up JPY 20 billion year-on-year, or over JPY 100 billion excluding last year’s Astemo sale.

• Core free cash flow is forecast to increase by JPY 60 billion year-on-year, excluding the Astemo sale impact.