Hitachi (6501) Q4 2025 earnings summary

Executive summary

• Inspire 2027 aims for sustainable growth via digital transformation, focusing on Lumada expansion, cash flow optimization, and capital allocation, leveraging One Hitachi's integrated strengths.

• Record-high KPIs and profits were achieved in FY2024, with all major sectors contributing to growth, driven by digital modernization, renewable energy, and the Thales GTS acquisition.

• FY2025 outlook anticipates continued revenue and profit growth despite global uncertainty and U.S. tariffs, with DSS, Energy, and Mobility as key drivers.

Financial highlights

• FY2024 consolidated revenues reached 9,783.3 billion yen (+1% YoY), adjusted EBITA was 1,141.8 billion yen, and net income attributable to shareholders was 615.7 billion yen.

• Core free cash flow rose to 780.5 billion yen, and ROIC improved to 10.9%.

• FY2025 guidance: revenues 10,100.0 billion yen (+3% YoY), adjusted EBITA 1,110.0 billion yen, net income 710.0 billion yen, and ROIC 11.0%.

Outlook and guidance

• FY2025 expects continued growth in DSS, energy, and mobility, with organic investments and tariff risks factored in.

• Shareholder returns to expand to 500.0 billion yen, including a 300.0 billion yen share buyback and increased dividends.

• Exchange rate assumptions: 145 yen/USD and 155 yen/EUR for FY2025.