Hitachi Ltd. - ADR

New Management Plan - Inspire 2027: Hitachi is focused on transforming into a digital-centric company with Lumada as a key revenue driver. They aim for Lumada to represent 80% of total revenues and achieve an adjusted EBITA margin of over 20%. The plan emphasizes cash flow strengthening, optimal capital allocation, and accelerating portfolio reforms.

Financial Performance FY 2024: Hitachi achieved a revenue growth of 14% YOY with adjusted EBITA surpassing JPY 1.1 trillion, a JPY 290 billion increase from the previous year. The adjusted EBITA margin improved to 11.7%, net income attributable to shareholders increased to JPY 615.7 billion, and ROIC reached 10% for the first time.

Outlook for FY 2025: Despite global economic uncertainties, Hitachi projects revenue growth of 6% to JPY 10.1 trillion and an increase in adjusted EBITA to JPY 1.1 trillion. Net income is also expected to rise to JPY 710 billion, reflecting a solid growth trajectory driven by DSS and Energy sectors.