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Earnings presentation6501Hitachi,Ltd.Electrical Equipment and Precision Instruments

Notice Regarding the Release of Materials for Hitachi Investor Day 2026 (CFO Session)

The company outlined a policy of increasing cash generation through the expansion and improved profitability of the Lumada business, and allocating funds to growth investments, shareholder returns, and debt repayment. It also announced initiatives to improve capital efficiency, repurchase treasury shares, and strengthen risk management.

Worth reading
66In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
28
% (CAGR of core FCF excluding large customer advance payments, FY2024–FY2026)
Wording
Conditional
How definitive the wording is.

Contents of this document

Medium-Term Management Plan Presentation9 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Full-year earnings forecast
Core FCF excluding large customer advance payments
FY2026 (outlook)¥8,500 100 million
Core FCF including large customer advance payments
FY2026 (outlook)¥11,702 100 million
EPS
FY2026188 yen
Annual dividend per share
FY2026 (forecast)55 yen
What the company explained in this material
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Impact of the situation in the Middle East
    AssumptionsOnly the anticipated direct impact on Q1 has been incorporated into the outlook
New initiatives
  • Growth investments in digital services and digitalized assets to expand the Lumada business
  • Acquisitions of Clever Devices, Omnicom, Shermco, and synvert
  • Adopting an asset-light approach through the divestment of low-profitability, low-growth businesses and non-core assets
  • Deploying risk management officers (RMOs) across businesses, regions, and corporate functions
  • Applying Physical AI to social infrastructure and promoting AI transformation of customers’ operations
Key KPIsA metric the company considers important as a management benchmark.
  • Company-wide revenue CAGR+7%
    Year on year against the same period last yearFY2024-FY2026
  • Growth in the Lumada revenue mix+15%
    Year on year against the same period last yearFY2024-FY2026
  • Increase in the Adj. EBITA margin+1.7 Points
    Year on year against the same period last yearFY2024-FY2026
  • CAGR of core FCF excluding large customer advance payments28%
    Year on year against the same period last yearFY2024-FY2026
  • EPS CAGR19%
    Year on year against the same period last yearFY2024-FY2026
  • Core FCF conversion100%
    Year on year against the same period last yearFY2026
Medium-term management plan targets
  • Target nameInspire 2027 Adj. EBITA margin
    Target value13～15%
    Target fiscal yearFY2027
  • Target nameInspire 2027 ROIC
    Target value12～13%
    Target fiscal yearFY2027
  • Target nameD/E ratio
    Target value0.5x
    Target fiscal yearInspire 2027
  • Target nameNet debt/EBITDA ratio
    Target value1–2x
    Target fiscal yearInspire 2027
Financial targets
  • ROIC
    Target value12～13%
    Target fiscal yearFY2027
  • Adj. EBITA margin
    Target value13～15%
    Target fiscal yearInspire 2027
  • D/E ratio
    Target value0.5x
    Target fiscal yearInspire 2027
  • Net debt/EBITDA ratio
    Target value1–2x
    Target fiscal yearInspire 2027
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • DetailsImpact of the situation in the Middle East (FY2026)
    Revenue-¥40.0 billion
    Adj. EBITA-¥20 billion
Number of employees
Number of EmployeesEmployees in the Middle East: approximately 2,900 (FY2025)
Annual Dividend
Annual dividend per share¥55 per share (FY2026 forecast)
Acquisition of treasury shares
Amount under the acquisition limit¥550 billion for FY2026 (outlook)
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Full-year earnings forecastCore FCF excluding large customer advance payments ¥8,500 100 million / Core FCF including large customer advance payments ¥11,702 100 million / EPS 188 yen / Annual dividend per share 55 yen
Key KPIsCompany-wide revenue CAGR +7%, Growth in the Lumada revenue mix +15%, Increase in the Adj. EBITA margin +1.7 Points, CAGR of core FCF excluding large customer advance payments 28%, EPS CAGR 19%, Core FCF conversion 100%
Number of employeesNumber of Employees Employees in the Middle East: approximately 2,900 (FY2025) / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookItem Impact of the situation in the Middle East / Assumptions Only the anticipated direct impact on Q1 has been incorporated into the outlook
Risk amount incorporated into the outlookDetails Impact of the situation in the Middle East (FY2026) / Revenue -¥40.0 billion / Adj. EBITA -¥20 billion
Medium-term management plan targetsTarget name Inspire 2027 Adj. EBITA margin / Target value 13～15% / Target fiscal year FY2027, Target name Inspire 2027 ROIC / Target value 12～13% / Target fiscal year FY2027, Target name D/E ratio / Target value 0.5x / Target fiscal year Inspire 2027, Target name Net debt/EBITDA ratio / Target value 1–2x / Target fiscal year Inspire 2027
Financial targetsIndicator name ROIC / Target value 12～13% / Target fiscal year FY2027, Indicator name Adj. EBITA margin / Target value 13～15% / Target fiscal year Inspire 2027, Indicator name D/E ratio / Target value 0.5x / Target fiscal year Inspire 2027, Indicator name Net debt/EBITDA ratio / Target value 1–2x / Target fiscal year Inspire 2027
Annual DividendAnnual dividend per share ¥55 per share (FY2026 forecast) / Interim and Year-End Breakdown Not disclosed
Acquisition of treasury sharesAmount under the acquisition limit ¥550 billion for FY2026 (outlook) / Number of shares under the acquisition limit Not disclosed / Period Not disclosed
New initiativesGrowth investments in digital services and digitalized assets to expand the Lumada business, Acquisitions of Clever Devices, Omnicom, Shermco, and synvert, Adopting an asset-light approach through the divestment of low-profitability, low-growth businesses and non-core assets, Deploying risk management officers (RMOs) across businesses, regions, and corporate functions, Applying Physical AI to social infrastructure and promoting AI transformation of customers’ operations
Items this document does not state (20)
Fiscal Period CoveredNet SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsPayout ratioCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company explained that revenue growth and margin improvement from the expansion of the Lumada business would strengthen cash generation. It also aims to improve ROIC by expanding its digital services business, raising productivity, adopting an asset-light approach, and optimizing its equity capital.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Release of Materials for Hitachi Investor Day 2026 (CFO Session) | Hitachi,Ltd. (6501) timely disclosure | Komori