Hitachi (6501) Q3 2025 earnings summary

Executive summary

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

• Adjusted EBITDA/EBITA rose 34% year-on-year, with margin improving to 12.4%.

• Net income attributable to shareholders was JPY 138.5 billion, down year-on-year due to prior-year gains from the Hitachi Astemo equity sale and current-year forex losses.

• Core free cash flow increased to JPY 205.6 billion, mainly from advances on large projects.

• FY24 forecasts were revised upward for revenues, adjusted EBITDA/EBITA, and core free cash flow, with most Mid-term Management Plan KPIs expected to be achieved.

Financial highlights

• Revenues up 16% year-on-year: GEM +27%, DSS +10%, CI +9%.

• Adjusted EBITDA/EBITA margin at 12.4%, up 2.2 points year-on-year.

• Shareholder returns, including buybacks, reached JPY 389.2 billion, up JPY 144.7 billion year-on-year.

• Total assets rose to JPY 13.67 trillion, up JPY 1.45 trillion year-on-year; interest-bearing debt increased to JPY 1.79 trillion.

• Cash conversion cycle improved to 52.8 days; equity ratio at 42.8%; D/E ratio at 0.30 times.

Outlook and guidance

• FY24 consolidated revenue forecast at JPY 9.7 trillion, up 11–13% year-on-year, with all segments expected to exceed prior-year growth rates.

• Adjusted EBITDA/EBITA forecast at JPY 1.1 trillion, margin at 11.3–11.4%, up 1.4 points year-on-year.

• Consolidated net income forecast at JPY 610 billion, up JPY 20 billion year-on-year.

• Core free cash flow forecast at JPY 610 billion; ROIC expected at 9.8%.

• Shareholder returns projected at JPY 389.2 billion, exceeding FY23 by JPY 144.7 billion.