Hitachi (6501) Q4 2025 earnings summary

Executive summary

• Announced Inspire 2027, a new management plan focused on digital transformation, cash flow, capital allocation, and portfolio reform to drive sustainable growth and corporate value.

• Revenues and profits increased across all main sectors, with record-high adjusted EBITA margin and core free cash flow for FY2024.

• Strong FY2024 performance driven by transmission equipment upgrades, renewable energy, digital modernization, and Lumada business expansion.

• Emphasizes harmonized growth in environment, well-being, and economic value, leveraging a decentralized global structure.

• FY2025 outlook anticipates continued revenue and profit growth despite global economic uncertainty and U.S. tariffs, driven by DSS, Energy, and Mobility sectors.

Financial highlights

• FY2024 consolidated revenues: 9,783.3 billion yen (+1% YoY); adjusted EBITA: 1,141.8 billion yen (+223.6 billion yen YoY); net income attributable to shareholders: 615.7 billion yen (+25.8 billion yen YoY).

• Adjusted EBITDA margin improved to 11.7%; ROIC reached 10.9% (+2.2 pts YoY); core free cash flow rose to 780.5 billion yen.

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

• Basic earnings per share for FY2024 was 126.91 yen, with a 5-for-1 share split effective July 1, 2024.

• Free cash flow was 598.5 billion yen, down 226.4 billion yen from the previous year, mainly due to the Thales GTS acquisition and increased capital expenditure.

Outlook and guidance

• FY2025 expects continued growth in DSS and energy, with increased organic strategic investments and risk from U.S. tariffs factored in.

• Shareholder returns to expand to 500 billion yen, including a 300 billion yen share buyback and a 10% dividend increase.

• Long-term: aim for 7%-9% revenue CAGR, 13%-15% adjusted EBITDA margin, over 90% cash flow conversion, and 12%-13% ROIC.

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

• Focus on global expansion of Social Innovation Business, business structural reforms, and portfolio review for sustainable growth.