Hitachi (6501) Q4 2026 earnings summary

Executive summary

• FY 2025 marked a strong start for the Inspire 2027 plan, achieving record highs in revenue, adjusted EBITDA/EBITA, net income, and core free cash flow, driven by robust performance in Energy (Power Grids), Domestic IT (DSS), and Mobility (Railway) segments, with Lumada and HMAX digital services accelerating expansion.

• Progress exceeded initial forecasts toward Inspire 2027 targets, supported by strategic investments, disciplined capital allocation, and ongoing business portfolio reforms.

• Net income attributable to stockholders increased by ¥186.6 billion to ¥802.3 billion year-over-year.

• Comprehensive income surged to ¥1,328.2 billion, up 136% year-over-year.

Financial highlights

• FY 2025 revenue: ¥10,586.7 billion (+8% YoY), adjusted EBITA: ¥1,311.4 billion (+21% YoY), net income: ¥802.3 billion, core FCF: ¥1,170.2 billion (+389.6 billion YoY), ROIC: 12.4% (+1.5 pts YoY).

• Adjusted EBITDA/EBITA margin improved by 1.3 points to 12.4%, with a target of 13.1% for FY 2026 (excluding certain risks).

• EPS increased by 32% year-on-year to ¥176.76; FY 2026 forecast: ¥188.78.

• Free cash flow reached ¥1,326.5 billion, up ¥727.9 billion from the previous year.

Outlook and guidance

• FY 2026 revenue is projected at ¥11,100.0 billion (+5% YoY), with all four sectors expected to see increased revenue and profit.

• Adjusted EBITDA/EBITA margin is forecast at 13.1% (excluding strategic investments and Middle East risk), with core FCF expected to rise (excluding large advances).

• Strategic investments and Middle East risks are factored into guidance, with a JPY 40 billion revenue and JPY 20 billion EBITDA risk in Q1.

• Assumptions include exchange rates of 150 yen/USD and 175 yen/euro.