Hitachi (6501) Q3 2026 earnings summary

Executive summary

• Q3 FY2025 delivered record highs in revenue, adjusted EBITDA/EBITA, and core free cash flow, driven by strong growth in Energy, Mobility, and Digital Systems & Services, with robust Japanese IT business performance.

• Revenues for the nine months ended December 31, 2025, increased 7% year-on-year to ¥7,501.8 billion, with net income attributable to stockholders up 48% to ¥638.6 billion.

• Upward revisions were made to full-year forecasts for revenue, profit, cash flow, and ROIC, reflecting strong business momentum across key segments.

• Comprehensive income rose 76% year-on-year, driven by strong operating performance and favorable foreign currency translation.

• 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), adjusted EBITA: ¥346.2bn (+64.4bn YoY), margin: 12.8% (+1.4 pts), net income: ¥165.6bn (+27.1bn YoY), core FCF: ¥289.1bn (+83.4bn YoY).

• Gross profit rose to ¥2,234.9 billion, up 11% year-on-year; adjusted operating income increased 26% to ¥825.7 billion.

• EBIT surged 54% to ¥1,027.5 billion; basic EPS increased 50% to ¥140.36 after a 5-for-1 share split.

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

• Net cash provided by operating activities more than doubled to ¥1,161.9 billion.

Outlook and guidance

• Full-year forecasts for revenue, profit, cash flow, and ROIC were revised upward; all six key KPIs are projected to improve year-on-year.

• FY2025 forecast: revenue ¥10,500.0bn (+7% YoY), adjusted EBITA ¥1,260.0bn (+176.4bn YoY), margin 12.0% (+0.9 pts), net income ¥760.0bn (+144.2bn YoY), core FCF ¥1,000.0bn (+219.4bn YoY), ROIC 11.8% (+0.9 pts).

• 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 to enhance shareholder returns.