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

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Mixed performance

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Scale

3000

¥ billion (upward revision to full-year revenue)

Wording

Conditional

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Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 202710 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥56,140 100 million+17.0%

Net income¥4,166 100 million-12.0%

Operating profit marginAdj. EBITA margin: 12.5%, +80 bps year on year

Results for the three months of the current quarter

Revenue

¥29,044 100 million+15.0%

Adj. EBITA

¥3,761 100 million

Adjusted EBITA margin

12.9 %

yoy_change_bps10

Quarterly profit attributable to owners of parent

¥2,271 100 million-534.0%

Core FCF

¥1,665 100 million-336.0%

Full-year earnings forecast

Revenue

¥120,000 100 million

Adj. EBITA

¥15,600 100 million

Adjusted EBITA margin

13 %

Profit attributable to owners of the parent

¥9,200 100 million

Core FCF

¥9,200 100 million

ROIC

13.5 %

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Q2 revenue

Business scale expansion and other factors2,543

Middle East impact-170

One-off impact151

Foreign Exchange Effects1,230

Q2 Adj. EBITA

Business scale expansion and other factors611

Corporate growth strategy investment-123

Middle East impact-60

One-off impact-59

Foreign Exchange Effects150

H1 revenue

Business scale expansion and other factors4,890

Middle East impact-330

One-off impact656

Foreign Exchange Effects3,050

H1 Adj. EBITA

Business scale expansion and other factors1,132

Corporate growth strategy investment-201

Middle East impact-130

One-off impact192

Foreign Exchange Effects385

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

U.S. dollar exchange rate¥160

Euro exchange rate185

Foreign exchange sensitivityFor a ¥1 depreciation from the assumed exchange rate, H2 revenue increases by ¥8 billion for the dollar and ¥5 billion for the euro, while Adj. EBITA increases by ¥1.1 billion for the dollar and ¥500 million for the euro

New initiatives

Spin off Hitachi Channel Solutions' ATM business into a joint venture and launch OH Channel Innovations
Establish the new home appliance company KADENOVA during FY2026
Complete the acquisitions and closing of Clever Devices and Canduct Group
Corporate growth strategy investments, including Lumada/HMAX development and the development and acquisition of AI talent

Key KPIsA metric the company considers important as a management benchmark.

Orders receivedDSS 18,220, Energy 34,725, Mobility 9,731, CI 19,458
Year on year against the same period last yearDSS +10%, Energy +66%, Mobility +40%, CI +26%
Order BacklogDSS ¥2.0 trillion, Hitachi Energy ¥10.5 trillion, Mobility ¥7.3 trillion
Year on year against the same period last year+12%, +14% and +3%, respectively, versus the end of FY2025
ROIC13.5 %
Core FCF¥5,315 100 million
Year on year against the same period last year-200.0%

Segment results

DSS

Q2 revenue8,141

Q2 Adj. EBITA1,259

Q2 revenue YoY+10%

Q2 Adj. EBITA YoY+¥7.8 billion

H1 revenue15,331

H1 Adj. EBITA margin13.8%

Energy

Q2 revenue9,604

Q2 Adj. EBITA1,458

Q2 revenue YoY+28%

Q2 Adj. EBITA YoY+¥51.5 billion

H1 revenue18,723

H1 Adj. EBITA margin14.7%

Mobility

Q2 revenue3,485

Q2 Adj. EBITA254

Q2 revenue YoY+16%

Q2 Adj. EBITA YoY+¥6.3 billion

H1 revenue6,929

H1 Adj. EBITA margin8.1%

Q2 revenue8,255

Q2 Adj. EBITA949

Q2 revenue YoY+9%

Q2 Adj. EBITA YoY+¥3.2 billion

H1 revenue15,866

H1 Adj. EBITA margin11.2%

Financial targets

ROIC13.5% (FY2026 outlook)

Debt-to-equity ratio0.15x (Q2 FY2026 actual)

Orders received and order backlog

Orders receivedDSS ¥1,822.0 billion, Energy ¥3,472.5 billion, Mobility ¥973.1 billion, CI ¥1,945.8 billion (H1)

Order backlogDSS ¥2.0 trillion, Hitachi Energy ¥10.5 trillion, Mobility ¥7.3 trillion

Capital expenditures

¥2,673 billion H1 actual

Annual Dividend

Interim Dividend¥32 per share, total dividend of ¥142.6 billion

Acquisition of treasury shares

Acquisition amountH1 ¥290.3 billion, full-year outlook ¥550 billion

Maximum number of shares to be repurchased160 million shares

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥56,140 100 million (YoY +17.0%)
Net income	¥4,166 100 million (YoY -12.0%)
Operating profit margin	Adj. EBITA margin: 12.5%, +80 bps year on year
Results for the three months of the current quarter	Revenue ¥29,044 100 million (YoY +15.0%) / Adj. EBITA ¥3,761 100 million / Adjusted EBITA margin 12.9 % / Quarterly profit attributable to owners of parent ¥2,271 100 million (YoY -534.0%) / Core FCF ¥1,665 100 million (YoY -336.0%)
Full-year earnings forecast	Revenue ¥120,000 100 million / Adj. EBITA ¥15,600 100 million / Adjusted EBITA margin 13 % / Profit attributable to owners of the parent ¥9,200 100 million / Core FCF ¥9,200 100 million / ROIC 13.5 %
Segment results	DSS Q2 revenue 8,141 / Q2 Adj. EBITA 1,259 / Q2 revenue YoY +10% / Q2 Adj. EBITA YoY +¥7.8 billion / H1 revenue 15,331 / H1 Adj. EBITA margin 13.8% / Energy Q2 revenue 9,604 / Q2 Adj. EBITA 1,458 / Q2 revenue YoY +28% / Q2 Adj. EBITA YoY +¥51.5 billion / H1 revenue 18,723 / H1 Adj. EBITA margin 14.7% / Mobility Q2 revenue 3,485 / Q2 Adj. EBITA 254 / Q2 revenue YoY +16% / Q2 Adj. EBITA YoY +¥6.3 billion / H1 revenue 6,929 / H1 Adj. EBITA margin 8.1% / CI Q2 revenue 8,255 / Q2 Adj. EBITA 949 / Q2 revenue YoY +9% / Q2 Adj. EBITA YoY +¥3.2 billion / H1 revenue 15,866 / H1 Adj. EBITA margin 11.2%
Breakdown of Factors Affecting the Change	Q2 revenue Business scale expansion and other factors 2,543 / Middle East impact -170 / One-off impact 151 / Foreign Exchange Effects 1,230 / Q2 Adj. EBITA Business scale expansion and other factors 611 / Corporate growth strategy investment -123 / Middle East impact -60 / One-off impact -59 / Foreign Exchange Effects 150 / H1 revenue Business scale expansion and other factors 4,890 / Middle East impact -330 / One-off impact 656 / Foreign Exchange Effects 3,050 / H1 Adj. EBITA Business scale expansion and other factors 1,132 / Corporate growth strategy investment -201 / Middle East impact -130 / One-off impact 192 / Foreign Exchange Effects 385
Key KPIs	Indicator name Orders received / Value DSS 18,220, Energy 34,725, Mobility 9,731, CI 19,458 / Year on year against the same period last year DSS +10%, Energy +66%, Mobility +40%, CI +26%, Indicator name Order Backlog / Value DSS ¥2.0 trillion, Hitachi Energy ¥10.5 trillion, Mobility ¥7.3 trillion / Year on year against the same period last year +12%, +14% and +3%, respectively, versus the end of FY2025, Indicator name ROIC / Value 13.5 % / Year on year against the same period last year Not disclosed, Indicator name Core FCF / Value ¥5,315 100 million / Year on year against the same period last year ¥-200 100 million
Assumptions Underlying the Business Outlook	U.S. dollar exchange rate ¥160 / Euro exchange rate 185 / Foreign exchange sensitivity For a ¥1 depreciation from the assumed exchange rate, H2 revenue increases by ¥8 billion for the dollar and ¥5 billion for the euro, while Adj. EBITA increases by ¥1.1 billion for the dollar and ¥500 million for the euro
Financial targets	ROIC 13.5% (FY2026 outlook) / Debt-to-equity ratio 0.15x (Q2 FY2026 actual)
Annual Dividend	Annual dividend amount Not disclosed / Interim Dividend ¥32 per share, total dividend of ¥142.6 billion / Year-end dividend Not disclosed
Acquisition of treasury shares	Acquisition amount H1 ¥290.3 billion, full-year outlook ¥550 billion / Maximum number of shares to be repurchased 160 million shares / Period Not disclosed
Capital expenditures	¥2,673 billion (H1 actual)
Orders received and order backlog	Orders received DSS ¥1,822.0 billion, Energy ¥3,472.5 billion, Mobility ¥973.1 billion, CI ¥1,945.8 billion (H1) / Order backlog DSS ¥2.0 trillion, Hitachi Energy ¥10.5 trillion, Mobility ¥7.3 trillion
New initiatives	Spin off Hitachi Channel Solutions' ATM business into a joint venture and launch OH Channel Innovations, Establish the new home appliance company KADENOVA during FY2026, Complete the acquisitions and closing of Clever Devices and Canduct Group, Corporate growth strategy investments, including Lumada/HMAX development and the development and acquisition of AI talent

Items this document does not state (14)

Operating profitOrdinary incomeGross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-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.

The revenue forecast was revised upward mainly for DSS and CI, while the Adj. EBITA forecast was revised upward mainly for Energy and CI. Factors cited for the increase in results included business expansion, the conversion of the order backlog into revenue, demand related to data centers and AI, continued improvements in production efficiency, an improved business mix and foreign exchange effects. At the same time, the company continues to monitor the impact of geopolitical risks and higher interest rates on orders and customer demand.

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