Komori
Earnings presentation6501Hitachi,Ltd.Electrical equipment and precision instruments

Overview of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue and adjusted EBITA increased significantly, driven by foreign exchange effects and the conversion of the order backlog into revenue. Full-year forecasts were raised for all 4 sectors, and consolidated forecasts for revenue, adjusted EBITA, and profit attributable to owners of the parent were also revised upward.

Worth reading
81Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
6000
¥100 million (increase from the previous full-year revenue forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥27,095 100 million+20.0%
Operating profit¥2,941 100 million EBIT
Net income¥1,894 100 million profit attributable to owners of the parent
Operating profit margin11.9 % +1.4%Adj. EBITA margin
Results for the three months of the current quarter
Revenue
¥27,095 100 million
Adj. EBITA
¥3,235 100 million
Quarterly profit attributable to owners of the parent
¥1,894 100 million
Core FCF
¥3,650 100 million
Full-year earnings forecast
Revenue
¥117,000 100 million
Adj. EBITA
¥15,200 100 million
Adjusted EBITA margin
13 %
Profit attributable to owners of the parent
¥9,000 100 million
Core FCF
¥9,000 100 million
ROIC
13 %
Basic EPS
¥201.14
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
HMAX revenue22
Lumada revenue23
Lumada digital services revenue23
Lumada digitized asset revenue22
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Raised forecasts for all 4 sectors, resulting in an upward revision for the Hitachi Group as a whole
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Q1 revenue
Business scale expansion and other factors2,347
Middle East impact-160
One-time impact505
Foreign-exchange impact1,820
Q1 Adj. EBITA
Business scale expansion and other factors518
Corporate strategic investment-78
Middle East impact-70
One-time impact255
Foreign-exchange impact235
Q1 profit attributable to owners of the parent
Adjusted operating profit832
Dividends received-451
Foreign-Exchange Gains and Losses-219
Non-operating income and expenses other than those listed above, income taxes and other items-190
Q1 core FCF
Adj. EBITA860
Net working capital2,138
CAPEX-404
Other changes-243
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
U.S. dollar exchange rate
Q2-Q4 FY2026¥160
Euro exchange rate
Q2-Q4 FY2026¥185
Foreign exchange sensitivity
¥1 depreciation against the dollar
Revenue¥110 100 million
Adj. EBITA¥12 100 million
¥1 depreciation against the euro
Revenue¥70 100 million
Adj. EBITA¥6 100 million
New initiatives
  • Progressive rollout of the Agentic AI Integration Platform for large-scale projects from September
  • Organic investment in AI platforms and the development and recruitment of FDE talent
  • Completion of the acquisition of Clever Devices
  • Strategic alliance with Google Cloud
  • Strategic partnership with thyssenkrupp AG
  • Integration of the operations of GlobalLogic and Hitachi Digital Services
  • Expansion of AI and FDE talent
Key KPIsA metric the company considers important as a management benchmark.
  • Lumada revenue¥11,440 100 million
    Year on year against the same period last year+31.0%
  • HMAX revenue¥1,110 100 million
  • Core FCF¥3,650 100 million
  • ROIC (full-year forecast)13 %
  • D/E ratio0.16 times
Segment results
DSS
Revenue
¥7,190 100 million
Adj. EBITA
¥855 100 million
Revenue_yoy_pct11
Adj. EBITA_yoy
¥141 100 million
Energy
Revenue
¥9,119 100 million
Adj. EBITA
¥1,290 100 million
Revenue_yoy_pct37
Adj. EBITA_yoy
¥505 100 million
Mobility
Revenue
¥3,444 100 million
Adj. EBITA
¥304 100 million
Revenue_yoy_pct21
Adj. EBITA_yoy
¥87 100 million
CI
Revenue
¥7,610 100 million
Adj. EBITA
¥834 100 million
Revenue_yoy_pct13
Adj. EBITA_yoy
¥201 100 million
Other
Revenue
¥1,234 100 million
Adj. EBITA
¥45 100 million
Revenue_yoy_pct2
Adj. EBITA_yoy
¥6 100 million
Financial targets
ROIC
FY2026 full-year forecast13 %
Debt-to-equity ratio
Q1 FY2026 results0.16 times
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Middle East Situation
Q2-Q4 revenue¥-100 100 million
Q2-Q4 Adj. EBITA¥-100 100 million
DetailsLogistics delays, shortages of procured materials, fewer orders for short-lead-time products, higher procurement and energy costs, and lower factory utilization
Orders received and order backlog
Orders received
DSS¥10,070 100 million
Energy¥19,063 100 million
Mobility¥5,690 100 million
CI¥9,382 100 million
Order backlog
DSS¥2.1 trillion
Hitachi Energy¥10.3 trillion ($636 million)
Mobility¥7.4 trillion
Number of employees
Employees in the Middle East
2,900 people
Domestic FDE talent
CurrentApproximately 300 people
Year-end targetApproximately 1,000
Overseas FDE talent
CurrentApproximately 100
Year-end targetApproximately 350
Advanced AI talent
CurrentApproximately 5,800
Year-end targetApproximately 13,000
Capital expenditures
¥1,311 100 million Q1 results
Annual Dividend
Annual
¥2,500 100 million
Q2-Q4
¥1,286 100 million
Acquisition of treasury shares
Planned acquisition amount
¥5,500 100 million
Q1 acquisition amount
¥1,479 100 million
Maximum number of shares to be repurchased
160 million shares
Q1 shares acquired
30.1 million shares
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥27,095 100 million (YoY +20.0%)
Operating profit¥2,941 100 million (EBIT)
Net income¥1,894 100 million (profit attributable to owners of the parent)
Operating profit margin11.9 % (Adj. EBITA margin) (YoY +1.4%)
Results for the three months of the current quarterRevenue ¥27,095 100 million / Adj. EBITA ¥3,235 100 million / Quarterly profit attributable to owners of the parent ¥1,894 100 million / Core FCF ¥3,650 100 million
Full-year earnings forecastRevenue ¥117,000 100 million / Adj. EBITA ¥15,200 100 million / Adjusted EBITA margin 13 % / Profit attributable to owners of the parent ¥9,000 100 million / Core FCF ¥9,000 100 million / ROIC 13 % / Basic EPS ¥201.14
Progress against full-year forecastHMAX revenue 22 / Lumada revenue 23 / Lumada digital services revenue 23 / Lumada digitized asset revenue 22
Self-assessment against the planRaised forecasts for all 4 sectors, resulting in an upward revision for the Hitachi Group as a whole
Segment resultsDSS Revenue ¥7,190 100 million / Adj. EBITA ¥855 100 million / Revenue_yoy_pct 11 / Adj. EBITA_yoy ¥141 100 million / Energy Revenue ¥9,119 100 million / Adj. EBITA ¥1,290 100 million / Revenue_yoy_pct 37 / Adj. EBITA_yoy ¥505 100 million / Mobility Revenue ¥3,444 100 million / Adj. EBITA ¥304 100 million / Revenue_yoy_pct 21 / Adj. EBITA_yoy ¥87 100 million / CI Revenue ¥7,610 100 million / Adj. EBITA ¥834 100 million / Revenue_yoy_pct 13 / Adj. EBITA_yoy ¥201 100 million / Other Revenue ¥1,234 100 million / Adj. EBITA ¥45 100 million / Revenue_yoy_pct 2 / Adj. EBITA_yoy ¥6 100 million
Breakdown of Factors Affecting the ChangeQ1 revenue Business scale expansion and other factors 2,347 / Middle East impact -160 / One-time impact 505 / Foreign-exchange impact 1,820 / Q1 Adj. EBITA Business scale expansion and other factors 518 / Corporate strategic investment -78 / Middle East impact -70 / One-time impact 255 / Foreign-exchange impact 235 / Q1 profit attributable to owners of the parent Adjusted operating profit 832 / Dividends received -451 / Foreign-Exchange Gains and Losses -219 / Non-operating income and expenses other than those listed above, income taxes and other items -190 / Q1 core FCF Adj. EBITA 860 / Net working capital 2,138 / CAPEX -404 / Other changes -243
Key KPIsIndicator name Lumada revenue / Value ¥11,440 100 million / Year on year against the same period last year ¥31 100 million, Indicator name HMAX revenue / Value ¥1,110 100 million / Year on year against the same period last year Not disclosed, Indicator name Core FCF / Value ¥3,650 100 million / Year on year against the same period last year Not disclosed, Indicator name ROIC (full-year forecast) / Value 13 % / Year on year against the same period last year Not disclosed, Indicator name D/E ratio / Value 0.16 times / Year on year against the same period last year Not disclosed
Number of employeesEmployees in the Middle East 2,900 people / Domestic FDE talent Current Approximately 300 people / Year-end target Approximately 1,000 / Overseas FDE talent Current Approximately 100 / Year-end target Approximately 350 / Advanced AI talent Current Approximately 5,800 / Year-end target Approximately 13,000
Assumptions Underlying the Business OutlookU.S. dollar exchange rate Q2-Q4 FY2026 ¥160 / Euro exchange rate Q2-Q4 FY2026 ¥185 / Foreign exchange sensitivity ¥1 depreciation against the dollar Revenue ¥110 100 million / Adj. EBITA ¥12 100 million / ¥1 depreciation against the euro Revenue ¥70 100 million / Adj. EBITA ¥6 100 million
Risk amount incorporated into the outlookMiddle East Situation Q2-Q4 revenue ¥-100 100 million / Q2-Q4 Adj. EBITA ¥-100 100 million / Details Logistics delays, shortages of procured materials, fewer orders for short-lead-time products, higher procurement and energy costs, and lower factory utilization
Financial targetsROIC FY2026 full-year forecast 13 % / Debt-to-equity ratio Q1 FY2026 results 0.16 times
Annual DividendAnnual ¥2,500 100 million / Q2-Q4 ¥1,286 100 million
Acquisition of treasury sharesPlanned acquisition amount ¥5,500 100 million / Q1 acquisition amount ¥1,479 100 million / Maximum number of shares to be repurchased 160 million shares / Q1 shares acquired 30.1 million shares / Planned acquisition period Not disclosed
Capital expenditures¥1,311 100 million (Q1 results)
Orders received and order backlogOrders received DSS ¥10,070 100 million / Energy ¥19,063 100 million / Mobility ¥5,690 100 million / CI ¥9,382 100 million / Order backlog DSS ¥2.1 trillion / Hitachi Energy ¥10.3 trillion ($636 million) / Mobility ¥7.4 trillion
New initiativesProgressive rollout of the Agentic AI Integration Platform for large-scale projects from September, Organic investment in AI platforms and the development and recruitment of FDE talent, Completion of the acquisition of Clever Devices, Strategic alliance with Google Cloud, Strategic partnership with thyssenkrupp AG, Integration of the operations of GlobalLogic and Hitachi Digital Services, Expansion of AI and FDE talent
Items this document does not state (9)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsMedium-term management plan targetsPayout ratioMarket 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.

In Q1, revenue and profit growth benefited from foreign exchange effects, the steady conversion of the order backlog into revenue, business expansion, the expansion of the Lumada business, and productivity improvements through the use of AI. Full-year forecasts were revised upward based on Q1 progress and business expansion in each sector, while incorporating the impact of the situation in the Middle East.

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Overview of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | Hitachi,Ltd. (6501) timely disclosure | Komori