Hitachi Q1 Adjusted Operating Profit Jumps 40% as Energy Revenue Climbs 37%

A quarter carried by the grid

Hitachi, Ltd. (TSE: 6501) published consolidated first-quarter results for FY3/2027 on July 29, 2026, covering April 1 to June 30, 2026 under IFRS. Revenue rose 20.0% to ¥2,709,586 million, gross profit 22.4% to ¥809,673 million and adjusted operating profit 39.5% to ¥294,287 million. Adjusted EBITA — the measure Hitachi reports at segment level — climbed 36.2% to ¥323,529 million, and the adjusted operating margin widened 1.6 points to 10.9%.

Energy did most of the work. The segment, which houses power grids and nuclear, lifted revenue 36.6% to ¥911,906 million and Adjusted EBITA 64.5% to ¥129,055 million. Its ¥50,583 million profit increase alone accounts for roughly three-fifths of the ¥86,002 million the group added at the Adjusted EBITA line.

Mobility grew revenue 20.7% to ¥344,422 million and Adjusted EBITA 40.2% to ¥30,461 million. Connective Industries — measurement and analysis systems, building systems, home appliances and air conditioning — added 13.3% revenue growth and 31.9% profit growth, to ¥83,445 million. Digital Systems & Services, the group's IT arm, was the slowest of the four at 11.2% revenue and 19.8% profit growth, though it absorbed the industrial systems-integration business transferred out of Connective Industries at the start of the quarter, with the prior-year comparatives restated on the new basis.

Europe and Asia outpace Japan

Overseas revenue rose 24.8% to ¥1,839,157 million and now accounts for 68% of the total, up from 65%. Asia grew 26.5% to ¥540,184 million, Europe 25.3% to ¥627,330 million and North America 20.9% to ¥454,636 million, while Japan managed 10.9% to ¥870,429 million and slipped to 32% of the mix from 35%.

Why the bottom line went the other way

Below adjusted operating profit the picture inverts. Financial income fell from ¥72,648 million to ¥8,643 million and equity-method income from ¥7,579 million to ¥2,874 million, while the tax charge rose 28.4% to ¥91,963 million. Pre-tax profit still advanced 8.5% to ¥295,109 million, but net profit attributable to owners of the parent fell 1.4% to ¥189,450 million; non-controlling interests took ¥13,696 million, up 66.8%. Earnings per share nevertheless edged up to ¥42.24 from ¥42.01, helped by an average share count roughly 90 million lower than a year earlier.

Balance sheet, buyback and a US rail deal

Total assets were essentially unchanged at ¥15,041,410 million and the parent-shareholders' equity ratio held at 43.7%, with book value per share up to ¥1,470.31 from ¥1,459.71. Treasury shares nearly doubled to 64,552,492 from 35,798,823 at the end of March, the mark of a continuing repurchase. On July 1, 2026 Hitachi Rail completed the acquisition of Clever Devices Holdings LLC, a US provider of intelligent transport systems for public transit operators — a subsequent event that enters the Mobility segment from the second quarter.

Guidance raised; year-end dividend still open

Hitachi raised its full-year FY3/2027 forecast: revenue of ¥11,700,000 million (+10.5%), adjusted operating profit of ¥1,408,000 million (+17.4%), Adjusted EBITA of ¥1,520,000 million (+15.9%), pre-tax profit of ¥1,335,000 million (+4.9%) and net profit attributable to shareholders of ¥900,000 million (+12.2%), for earnings per share of ¥201.14. The interim dividend is set at ¥28.00 against ¥23.00 a year earlier; the year-end dividend remains undecided, so no annual figure has been published.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.