Hitachi (6501): FY2025 Results Summary — Record Profit and Cash Flow on Energy and DSS Growth

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Hitachi, Ltd. reported record-high results for the fiscal year ended March 31, 2026 (FY2025), with revenue of 10,586.7 billion yen (+8% YoY, +7% excluding FX impact), Adj. EBITA of 1,311.4 billion yen (+227.9 billion yen YoY), and net income attributable to Hitachi, Ltd. shareholders of 802.3 billion yen (+186.6 billion yen YoY). Adj. EBITA margin improved 1.3 points YoY to 12.4%, and Core FCF reached a record 1,170.2 billion yen (+389.6 billion yen YoY), driven by the Power Grids business (Energy), the Japanese IT business (DSS), and the Rail Control business (Mobility). Hitachi stated it progressed more than its initial forecast toward achieving the Inspire 2027 targets. For FY2026, Hitachi forecasts further revenue and profit growth to 11,100.0 billion yen and 850.0 billion yen in net income, respectively, while continuing to monitor the Middle East situation.

Consolidated Results (Full-Year Actual)

FY2025 revenue rose 8% YoY (+7% excluding FX impact) to 10,586.7 billion yen. In the YoY bridge, the Energy, DSS and other businesses subtotal contributed +661.9 billion yen and foreign exchange contributed +141.5 billion yen versus FY2024 revenue of 9,783.3 billion yen. Adj. EBITA increased 227.9 billion yen YoY to 1,311.4 billion yen, as a +231.2 billion yen contribution from Energy, DSS and other businesses was partly offset by a 20.3 billion yen increase in strategic investments (including a 24.0 billion yen impact from U.S. reciprocal tariffs), with FX contributing +17.0 billion yen; Adj. EBITA margin reached 12.4% (+1.3 pts YoY, versus 11.1% in FY2024). Net income attributable to Hitachi, Ltd. shareholders rose 186.6 billion yen YoY to 802.3 billion yen (basic EPS: 176.76 yen), and Core FCF rose 389.6 billion yen YoY to 1,170.2 billion yen, driven by higher Adj. EBITA (+227.9 billion yen) and net working capital effects including advances received on large projects, partly offset by higher CAPEX. The effective income tax rate for FY2025 was 28.1%. Actual average FX rates were 151 yen/USD and 175 yen/EURO in FY2025, versus 153 yen/USD and 164 yen/EURO in FY2024.

Item	FY2024 (Actual)	FY2025 (Actual)	FY2026 (Forecast)
Revenue	9,783.3 bn yen	10,586.7 bn yen	11,100.0 bn yen
Adj. EBITA	1,083.5 bn yen	1,311.4 bn yen	1,420.0 bn yen
Adj. EBITA margin	11.1%	12.4%	12.8%
Net income (attributable to Hitachi, Ltd. shareholders)	615.7 bn yen	802.3 bn yen	850.0 bn yen
Basic EPS	–	176.76 yen	188.78 yen
Core FCF	780.5 bn yen	1,170.2 bn yen	850.0 bn yen
ROIC	–	12.4%	12%

Segment Results

Revenue and profit increased across most segments in FY2025. Energy delivered the largest Adj. EBITA growth (+164.0 billion yen), led by the Power Grids business on continued solid demand for transmission equipment and execution of a strong order backlog, with particularly strong performance in Europe and North America; Hitachi Energy revenue reached 19.8 billion USD (+26% YoY) with Adj. EBITA margin of 13.4% (+3.9 pts YoY). DSS Adj. EBITA increased 55.9 billion yen to a record segment profit (Adj. EBITA margin 15.3%), driven by +7% YoY growth in domestic DSS revenue (Front/IT Services) through DX/modernization projects including the Lumada business, even as Storage revenue declined amid customer investment restraint and disciplined deal governance. Mobility Adj. EBITA rose 13.2 billion yen on the trend of a highly profitable Rail Control business and FX tailwind, with expansion in Europe and North America. Connective Industries (CI) revenue declined 1% due to weaker demand for new elevator and escalator installations in China, but Adj. EBITA still grew 22.0 billion yen on higher sales of semiconductor manufacturing equipment and expansion of the digital services (Lumada) business.

Segment	FY2025 Revenue (YoY)	FY2025 Adj. EBITA, Margin (YoY)	FY2026F Revenue (YoY)	FY2026F Adj. EBITA, Margin (YoY)
Digital Systems & Services (DSS)	2,940.0 bn yen (+4%)	450.0 bn yen, 15.3% (+55.9 bn yen)	3,190.0 bn yen (+4%)	500.0 bn yen, 15.7% (+22.8 bn yen)
Energy	3,219.9 bn yen (+23%)	416.0 bn yen, 12.9% (+164.0 bn yen)	3,700.0 bn yen (+15%)	500.0 bn yen, 13.5% (+83.9 bn yen)
Mobility	1,321.5 bn yen (+13%)	108.1 bn yen, 8.2% (+13.2 bn yen)	1,350.0 bn yen (+2%)	127.0 bn yen, 9.4% (+18.8 bn yen)
Connective Industries (CI)	3,262.7 bn yen ((1)%)	367.3 bn yen, 11.3% (+22.0 bn yen)	3,150.0 bn yen (+2%)	371.0 bn yen, 11.8% (+30.6 bn yen)
Others	531.0 bn yen (+7%)	22.9 bn yen, 4.3% (+11.0 bn yen)	475.0 bn yen ((11)%)	10.0 bn yen, 2.1% ((12.9) bn yen)
Corporate items & Elimination	(688.6) bn yen	(53.1) bn yen ((38.3) bn yen)	(765.0) bn yen	(88.0) bn yen ((34.8) bn yen)
Consolidated Total	10,586.7 bn yen (+8%)	1,311.4 bn yen, 12.4% (+227.9 bn yen)	11,100.0 bn yen (+5%)	1,420.0 bn yen, 12.8% (+108.5 bn yen)

FY2026 Forecast

For FY2026, Hitachi forecasts consolidated revenue of 11,100.0 billion yen (+5% YoY) and Adj. EBITA of 1,420.0 billion yen (+108.5 billion yen YoY), with Adj. EBITA margin improving 0.4 pts to 12.8%. Net income attributable to Hitachi, Ltd. shareholders is forecast at 850.0 billion yen (+47.6 billion yen YoY; basic EPS 188.78 yen), while Core FCF is forecast to decrease 320.2 billion yen YoY to 850.0 billion yen. Assumed FX rates for FY2026 are 150 yen/USD and 175 yen/EURO; FX sensitivity is +14.5 billion yen revenue and +1.5 billion yen Adj. EBITA per 1-yen USD depreciation, and +9.0 billion yen revenue and +0.8 billion yen Adj. EBITA per 1-yen EURO depreciation. Hitachi expects revenue and profit growth across all four sectors, majorly driven by the Power Grids business (Energy) and the Japanese IT business (DSS), while executing strategic investments for further growth. Regarding the Middle East situation, the forecast factors in only the direct impacts anticipated in Q1, amounting to a risk of (40.0) billion yen in revenue and (20.0) billion yen in Adj. EBITA, booked in Corporate items and Eliminations; Hitachi’s FY2025 exposure to the Middle East was approximately 470.0 billion yen in revenue and approximately 2,900 employees, mainly in Saudi Arabia and the UAE.

Shareholder Returns

Hitachi completed approximately 550.0 billion yen of FY2025 shareholder returns, comprising total dividends of approximately 200.0 billion yen and share buybacks of approximately 350.0 billion yen (buyback authorization for the fiscal year was 400.0 billion yen, including an additional 100.0 billion yen announced in January 2026). The FY2025 year-end dividend is planned at 27 yen/share (+4 yen versus the FY2025 interim dividend of 23 yen/share). For FY2026, Hitachi plans total shareholder returns of approximately 800.0 billion yen, comprising dividends of approximately 250.0 billion yen and share buybacks of approximately 550.0 billion yen; the FY2026 interim dividend is forecast at 28 yen/share, and share buybacks of up to 500.0 billion yen (upper limit) are authorized for the acquisition period from April 28, 2026 to March 31, 2027 (plan).

Item	FY2025 (Actual)	FY2026 (Forecast/Plan)
Total dividends	c. 200.0 bn yen	c. 250.0 bn yen
Share buybacks (cash outflow for the fiscal year)	c. 350.0 bn yen	c. 550.0 bn yen
Total shareholder returns	c. 550.0 bn yen	c. 800.0 bn yen
Dividend per share	Interim: 23 yen; Year-end: 27 yen (plan)	Interim: 28 yen (forecast)
Share buyback authorization (upper limit, per fiscal year)	400.0 bn yen (incl. 100.0 bn yen additional buyback announced Jan 2026)	500.0 bn yen (acquisition period: Apr 28, 2026 – Mar 31, 2027 (plan))

Medium-Term Plan / Topics

Hitachi progressed several business portfolio reforms during the period. It agreed to establish a new home appliances company by March 2027 based on a strategic partnership with Nojima (investment ratio: Nojima 80.1%, Hitachi GLS 19.9%; transfer price approximately 110.0 billion yen, subject to final adjustment), while the air conditioning business will continue to be held by Hitachi GLS. It also agreed on a business integration with OKI for the ATM business (planned start October 1, 2026; ownership ratio OKI 60%, Hitachi 40%) to ensure stable supply and business growth in Japan and overseas, and agreed to acquire Clever Devices, a provider of Intelligent Transportation Systems, to scale HMAX Mobility (closing scheduled later in CY2026). On the Lumada business, FY2025 Lumada revenue grew 48% YoY to 4,146.0 billion yen (40% of total revenue, 16% Adj. EBITA margin), and is forecast to grow 16% YoY to 4,790.0 billion yen in FY2026 (44% of total revenue, 17% Adj. EBITA margin). Within Lumada, HMAX (recurring digital services) revenue was 300.0 billion yen in FY2025 (22% Adj. EBITA margin) and is forecast to grow 60% YoY to 480.0 billion yen in FY2026 (22% Adj. EBITA margin), following the March 2026 launch of HMAX Energy and the April 2026 agreement to acquire Clever Devices for HMAX Mobility.

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