Hitachi (6501) Q3 2026 earnings summary

Executive summary

• Q3 FY2025 and the nine months ended December 31, 2025, saw record highs in revenue, adjusted EBITDA/EBITA, and core free cash flow, driven by strong growth in Energy, Mobility, and Digital Systems & Services (DSS), with robust Japanese IT and digital transformation performance.

• Net income attributable to shareholders rose 48% year-on-year to ¥638.6 billion, with comprehensive income up 76% due to strong operations and favorable FX.

• Upward revisions were made to full-year forecasts for revenue, profit, and cash flow, reflecting continued expansion in Energy, DSS, and Mobility.

• Strategic business reforms, asset sales (Hitachi Construction Machinery, Astemo), and acquisitions (synvert Holding GmbH) contributed to portfolio optimization and digital/AI capability enhancement.

• Segment reclassification and profit calculation changes were implemented to align with a digital-centric strategy.

Financial highlights

• Q3 FY2025 revenue: ¥2,714.3bn (+10% YoY); nine months revenue: ¥7,501.8bn (+7% YoY); adjusted EBITA: ¥346.2bn (+64.4bn YoY); net income: ¥165.6bn (+27.1bn YoY); core FCF: ¥289.1bn (+83.4bn YoY).

• FY2025 forecast: revenue ¥10,500.0bn (+7% YoY), adjusted EBITA ¥1,260.0bn (+176.4bn YoY), net income ¥760.0bn (+144.2bn YoY), core FCF ¥1,000.0bn (+219.4bn YoY), ROIC 11.8% (+0.9 pts).

• Gross profit rose to ¥2,234.9bn (+11% YoY); EBIT surged 54% to ¥1,027.5bn; basic EPS increased 50% to ¥140.36 after a 5-for-1 share split.

• Cash and cash equivalents at period end were ¥1,124.7bn, up ¥258.4bn from March 2025; D/E ratio improved to 0.16x.

• Free cash flow increased to ¥987.5bn, up ¥790.9bn year-over-year.

Outlook and guidance

• Full-year forecasts for revenue, profit, and cash flow revised upward; all six key KPIs projected to improve over the previous year.

• Revenue (excluding FX) expected to grow 7% year-on-year, with adjusted EBITDA/EBITA and net income also increasing.

• Management emphasizes continued focus on digital transformation and growth in Social Innovation Business.

• Share repurchase program of up to 30 million shares (¥100 billion) authorized for Q1 2026.