Hitachi
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Hitachi (6501) investor relations material

Hitachi Q1 2027 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2027 earnings summary29 Jul, 2026

Executive summary

  • Q1 FY2026 revenue rose 20% year-on-year to ¥2,709.6 billion, reaching record highs, driven by business expansion, favorable foreign exchange effects, and strong performance across all four sectors, especially Energy.

  • Net income attributable to shareholders was ¥203.1 billion, up 1% year-over-year, and core free cash flow reached ¥365.0 billion, both increasing year-over-year.

  • All major business segments achieved double-digit revenue growth, with notable strength in Energy and Mobility, and Lumada business accounted for 43% of consolidated revenue.

  • The impact of the Middle East situation was less than anticipated, with a negative effect of ¥16.0 billion on revenue and ¥7.0 billion on adjusted EBITA, but remains a risk factor.

  • The acquisition of Clever Devices was completed in July 2026, expanding the Mobility segment's digital capabilities.

Financial highlights

  • Adjusted EBITA margin improved by up to 140 basis points year-on-year to 11.9%, with adjusted EBITA at ¥323.5 billion (+¥86.0 billion YoY).

  • Gross profit increased 22% year-over-year to ¥809.7 billion, and adjusted operating income rose 39% to ¥294.3 billion.

  • Core free cash flow increased by over ¥200 billion year-on-year, reaching ¥365.0 billion.

  • Total assets at end of Q1 FY2026 were about ¥15 trillion, nearly unchanged from FY2025.

  • Basic earnings per share grew 1% to ¥42.24.

Outlook and guidance

  • FY2026 revenue forecast raised to ¥11,700.0 billion (+11% YoY), with adjusted EBITA margin expected to reach 13%.

  • Net income, core free cash flow, and ROIC forecasts also increased, reflecting strong Q1 and revised FX assumptions.

  • CapEx for FY2026 is expected to reach ¥670.0 billion, mainly in the Energy sector, with ongoing investments in production capacity and AI adoption.

  • Shareholder returns for FY2026 include a planned ¥550.0 billion share buyback and ¥250.0 billion in dividends.

  • Management highlights ongoing risks from global economic conditions, exchange rates, and raw material prices.

Rationale for Clever Devices acquisition
EBIT and adjusted operating income divergence
Drivers of higher treasury stock acquisitions
Explain Energy capacity reservation agreements
DSS AI productivity targets through FY2027
Q1 HMAX revenue breakdown by business sector
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