Interim report
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FOR IMMEDIATE RELEASE Hitachi Announces Consolidated Financial Results for the Second Quarter Ended September 30, 2026 Tokyo, October 28, 2026 --- Hitachi, Ltd. (TSE:6501) today announced its consolidated financial results for the Second Quarter Ended September 30, 2026 Contacts: [Media] Global Communications Department Global Corporate Brand & Communications Division Corporate Strategy Group Hitachi, Ltd. +81-3-3258-1111 [IR] Investor Relations Division Hitachi, Ltd. +81-3-5208-9323
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(Millions of yen) Six-month period ended September 30, 2025 (A) Six-month period ended September 30, 2026 (B) (B)/(A) (%) Revenues 4,787,406 5,614,028 117 Cost of sales (3,361,562) (3,923,051) 117 Gross profit 1,425,844 1,690,977 119 Selling, general and administrative expenses (917,801) (1,047,717) 114 Adjusted operating income 508,043 643,260 127 Other income 96,918 2,630 3 Other expenses (32,760) (21,437) 65 Financial income 102,264 22,940 22 Financial expenses (5,538) (22,536) 407 Share of profits (losses) of investments accounted for using the equity method 12,965 2,633 20 EBIT (Earnings before interest and taxes) 681,892 627,490 92 Interest income 16,938 16,132 95 Interest charges (18,661) (13,688) 73 Income before income taxes 680,169 629,934 93 Income taxes (186,611) (184,635) 99 Net income 493,558 445,299 90 Net income attributable to: Hitachi, Ltd. stockholders 472,862 416,621 88 Non-controlling interests 20,696 28,678 139 Earnings per share attributable to Hitachi, Ltd. stockholders Yen Yen Basic 103.63 93.20 90 Diluted 103.55 93.10 90 Condensed Semi-annual Consolidated Statement of Profit or Loss (Millions of yen) Six-month period ended September 30, 2025 (A) Six-month period ended September 30, 2026 (B) (B)/(A) (%) Net income 493,558 445,299 90 Other comprehensive income (OCI) Items not to be reclassified into net income Net changes in financial assets measured at fair value through OCI 11,439 63,427 554 Remeasurements of defined benefit plans 41 3,173 - Share of OCI of investments accounted for using the equity method (1,162) 77 - Total items not to be reclassified into net income 10,318 66,677 646 Items that can be reclassified into net income Foreign currency translation adjustments 44,415 (89,954) - Net changes in cash flow hedges 1,668 (29,902) - Share of OCI of investments accounted for using the equity method 7,580 3,732 49 Total items that can be reclassified into net income 53,663 (116,124) - Other comprehensive income (OCI) 63,981 (49,447) - Comprehensive income 557,539 395,852 71 Comprehensive income attributable to: Hitachi, Ltd. stockholders 536,242 364,917 68 Non-controlling interests 21,297 30,935 145 Condensed Semi-annual Consolidated Statement of Comprehensive Income - 2 -
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(Millions of yen) As of March 31, 2026 (A) As of September 30, 2026 (B) (B)-(A) Assets Current assets Cash and cash equivalents 1,323,480 1,511,029 187,549 Trade receivables and contract assets 4,004,890 3,729,613 (275,277) Inventories 1,770,479 1,887,616 117,137 Investments in securities and other financial assets 355,304 456,490 101,186 Other current assets 413,086 699,787 286,701 Total Current assets 7,867,239 8,284,535 417,296 Non-current assets Investments accounted for using the equity method 612,142 468,055 (144,087) Investments in securities and other financial assets 593,559 398,687 (194,872) Property, plant and equipment 1,652,913 1,724,875 71,962 Goodwill 2,647,501 2,639,982 (7,519) Other intangible assets 1,215,731 1,173,625 (42,106) Other non-current assets 452,161 497,969 45,808 Total Non-current assets 7,174,007 6,903,193 (270,814) Total Assets 15,041,246 15,187,728 146,482 Liabilities Current liabilities Short-term debt 43,407 50,889 7,482 Current portion of long-term debt 425,877 424,665 (1,212) Other financial liabilities 317,342 260,958 (56,384) Trade payables 1,658,755 1,663,872 5,117 Accrued expenses 799,334 708,057 (91,277) Contract liabilities 3,054,661 3,290,467 235,806 Other current liabilities 867,763 943,407 75,644 Total Current liabilities 7,167,139 7,342,315 175,176 Non-current liabilities Long-term debt 539,753 553,387 13,634 Retirement and severance benefits 235,675 232,035 (3,640) Other non-current liabilities 326,072 337,078 11,006 Total Non-current liabilities 1,101,500 1,122,500 21,000 Total Liabilities 8,268,639 8,464,815 196,176 Equity Hitachi, Ltd. stockholders' equity Common stock 466,666 466,666 - Capital surplus - - - Retained earnings 4,759,761 5,076,028 316,267 Accumulated other comprehensive income 1,502,404 1,427,240 (75,164) (Foreign currency translation adjustments) 1,290,980 1,198,302 (92,678) (Remeasurements of defined benefit plans) 130,835 133,876 3,041 (Net changes in financial assets measured at fair value through OCI) 75,375 116,408 41,033 (Net changes in cash flow hedges) 5,214 (21,346) (26,560) Treasury stock, at cost (160,462) (444,535) (284,073) Total Hitachi, Ltd. stockholders' equity 6,568,369 6,525,399 (42,970) Non-controlling interests 204,238 197,514 (6,724) Total Equity 6,772,607 6,722,913 (49,694) Total Liabilities and Equity 15,041,246 15,187,728 146,482 Condensed Semi-annual Consolidated Statement of Financial Position - 3 -
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(Millions of yen) Six-month period ended September 30, 2025 Total Hitachi, Ltd. stockholders’ equity Non- controlling interests Total equityCommon stock Capital surplus Retained earnings Accumulated other comprehensive income Treasury stock, at cost Balance at beginning of period 464,384 - 4,350,503 1,040,791 (8,587) 5,847,091 184,326 6,031,417 Changes in equity Reclassified into retained earnings - - 1,675 (1,675) - - - - Net income - - 472,862 - - 472,862 20,696 493,558 Other comprehensive income - - - 63,380 - 63,380 601 63,981 Dividends to Hitachi, Ltd. stockholders - - (100,713) - - (100,713) - (100,713) Dividends to non-controlling interests - - - - - - (31,824) (31,824) Acquisition of treasury stock - - - - (171,649) (171,649) - (171,649) Disposition of treasury stock - (785) - - 877 92 - 92 Issuance of new shares 2,282 2,282 - - - 4,564 - 4,564 Transfer to capital surplus from retained earnings - - - - - - - - Transactions with non-controlling interests and others - 3,709 - 370 - 4,079 (1,840) 2,239 Total changes in equity 2,282 5,206 373,824 62,075 (170,772) 272,615 (12,367) 260,248 Balance at end of period 466,666 5,206 4,724,327 1,102,866 (179,359) 6,119,706 171,959 6,291,665 (Millions of yen) Six-month period ended September 30, 2026 Total Hitachi, Ltd. stockholders’ equity Non- controlling interests Total equityCommon stock Capital surplus Retained earnings Accumulated other comprehensive income Treasury stock, at cost Balance at beginning of period 466,666 - 4,759,761 1,502,404 (160,462) 6,568,369 204,238 6,772,607 Changes in equity Reclassified into retained earnings - - 22,621 (22,621) - - - - Net income - - 416,621 - - 416,621 28,678 445,299 Other comprehensive income - - - (51,704) - (51,704) 2,257 (49,447) Dividends to Hitachi, Ltd. stockholders - - (121,493) - - (121,493) - (121,493) Dividends to non-controlling interests - - - - - - (35,421) (35,421) Acquisition of treasury stock - - - - (290,396) (290,396) - (290,396) Disposition of treasury stock - (3,768) - - 6,323 2,555 - 2,555 Issuance of new shares - - - - - - - - Transfer to capital surplus from retained earnings - 1,482 (1,482) - - - - - Transactions with non-controlling interests and others - 2,286 - (839) - 1,447 (2,238) (791) Total changes in equity - - 316,267 (75,164) (284,073) (42,970) (6,724) (49,694) Balance at end of period 466,666 - 5,076,028 1,427,240 (444,535) 6,525,399 197,514 6,722,913 Condensed Semi-annual Consolidated Statement of Changes in Equity - 4 -
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(Millions of yen) Six-month period ended September 30, 2025 (A) Six-month period ended September 30, 2026 (B) (B)-(A) Cash flows from operating activities Net Income 493,558 445,299 (48,259) Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 216,466 237,602 21,136 Impairment losses 8,623 11,545 2,922 Income taxes 186,611 184,635 (1,976) Share of (profits) losses of investments accounted for using the equity method (12,965) (2,633) 10,332 Financial income and expenses (60,028) (20,784) 39,244 Net (gain) loss on business reorganization and others (95,994) 214 96,208 (Gain) loss on sale of property, plant and equipment 1,726 (2,039) (3,765) Change in trade receivables and contract assets 136,479 249,275 112,796 Change in inventories (188,273) (138,164) 50,109 Change in trade payables (29,408) (5,817) 23,591 Change in accrued expenses (82,418) (82,438) (20) Change in contract liabilities 358,477 263,487 (94,990) Change in retirement and severance benefits 3,772 3,023 (749) Other (83,308) (104,021) (20,713) Subtotal 853,318 1,039,184 185,866 Interest received 17,712 19,188 1,476 Dividends received 76,217 15,089 (61,128) Interest paid (18,740) (13,306) 5,434 Income taxes paid (178,880) (261,277) (82,397) Net cash provided by (used in) operating activities 749,627 798,878 49,251 Cash flows from investing activities Purchase of property, plant and equipment (130,833) (191,391) (60,558) Purchase of intangible assets (67,250) (75,950) (8,700) Proceeds from sale of property, plant and equipment, and intangible assets 7,164 12,273 5,109 Purchase of investments in securities and other financial assets (including investments in subsidiaries and investments accounted for using the equity method) (30,162) (86,070) (55,908) Proceeds from sale of investments in securities and other financial assets (including investments in subsidiaries and investments accounted for using the equity method) 216,000 208,446 (7,554) Other 18,478 11,151 (7,327) Net cash provided by (used in) investing activities 13,397 (121,541) (134,938) Free cash flows 763,024 677,337 (85,687) Cash flows from financing activities Change in short-term debt, net (31,803) 18,977 50,780 Proceeds from long-term debt 57,488 8,946 (48,542) Payments on long-term debt (97,674) (52,490) 45,184 Proceeds from payments from non-controlling interests 480 276 (204) Dividends paid to Hitachi, Ltd. stockholders (100,610) (121,381) (20,771) Dividends paid to non-controlling interests (31,957) (33,716) (1,759) Acquisition of common stock for treasury (171,649) (290,396) (118,747) Proceeds from sales of treasury stock - 2,539 2,539 Purchase of shares of consolidated subsidiaries from non-controlling interests (2,212) (7,063) (4,851) Net cash provided by (used in) financing activities (377,937) (474,308) (96,371) Effect of exchange rate changes on cash and cash equivalents 27,606 (15,480) (43,086) Change in cash and cash equivalents 412,693 187,549 (225,144) Cash and cash equivalents at beginning of period 866,242 1,323,480 457,238 Cash and cash equivalents at end of period 1,278,935 1,511,029 232,094 Condensed Semi-annual Consolidated Statement of Cash Flows Note: A change in presentation has been made effective from April 1, 2026 for improved clarity. “Change in contract liabilities,” which was previously included in “Change in trade receivables and contract assets” under cash flows from operating activities, has been reclassified and separately presented. The condensed semi-annual consolidated statement of cash flows for the six-month period ended September 30, 2025 has been reclassified in order to reflect this change in presentation. - 5 -
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Segment Information (1) Segment revenues and profit (loss) The operating segments of the Company are the components for which separate financial information is available and which is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company discloses its business in five reportable segments, corresponding to categories of activities classified primarily by the similarities for the nature of markets, products and services, and economic characteristics. Several operating segments are aggregated into Energy and Connective Industries for financial reporting purposes so that users of the financial statements better understand the Company’s financial position and business performance. The Company aggregates operating segments based on the similarities of economic characteristics mainly using the segment profit (loss) margin ratio of operating segments. The primary products and services included in each reportable segment are as follows: (a) Digital Systems & Services: Digital solutions (System integration, Cloud services, Consulting services), IT products (Storage, Servers), Software, and ATMs (b) Energy: Energy solutions (Power grids, Nuclear) (c) Mobility: Railway systems (d) Connective Industries: Measurement and analysis systems (Semiconductor manufacturing equipment, Clinical analyzers), Industrial equipment & Digital solutions, Building systems (Elevators, Escalators), and Smart life & ecofriendly systems (Home appliances, Air conditioners) (e) Others: Property management and others Effective from April 1, 2026, the Company transferred its Industry SI business, which had previously been included in the Connective Industries segment, to the Digital Systems & Services segment, and has disclosed the results of the Digital Systems & Services segment including the transferred business. Accordingly, figures for the six-month period ended September 30, 2025 have been restated on the basis of the reclassification. - 6 -
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(Millions of yen) Six-month period ended September 30, 2025 Reportable Segment Digital Systems & Services Energy Mobility Connective Industries Revenues Revenues from External Customers 1,327,546 1,408,925 585,344 1,316,857 Revenues from Intersegment Transactions 62,239 9,457 358 113,227 Total Revenues 1,389,785 1,418,382 585,702 1,430,084 Segment Profit (Loss) 189,584 172,722 40,747 155,036 (Millions of yen) Six-month period ended September 30, 2025 Reportable Segment Corporate items & Eliminations TotalOthers Subtotal Revenues Revenues from External Customers 129,737 4,768,409 18,997 4,787,406 Revenues from Intersegment Transactions 122,052 307,333 (307,333) - Total Revenues 251,789 5,075,742 (288,336) 4,787,406 Segment Profit (Loss) 12,623 570,712 (8,909) 561,803 (Millions of yen) Six-month period ended September 30, 2026 Reportable Segment Digital Systems & Services Energy Mobility Connective Industries Revenues Revenues from External Customers 1,449,741 1,862,775 692,256 1,475,316 Revenues from Intersegment Transactions 83,456 9,601 729 111,325 Total Revenues 1,533,197 1,872,376 692,985 1,586,641 Segment Profit (Loss) 211,520 274,894 55,876 178,419 (Millions of yen) Six-month period ended September 30, 2026 Reportable Segment Corporate items & Eliminations TotalOthers Subtotal Revenues Revenues from External Customers 122,962 5,603,050 10,978 5,614,028 Revenues from Intersegment Transactions 133,696 338,807 (338,807) - Total Revenues 256,658 5,941,857 (327,829) 5,614,028 Segment Profit (Loss) 14,050 734,759 (35,108) 699,651 The following tables show business segment information for the six-month period ended September 30, 2025 and 2026. Segment profit (loss) is measured by Adjusted EBITA. Adjusted EBITA is defined as Adjusted Earnings before Interest, Taxes and Amortization. Adjusted EBITA represents profit (loss) calculated by deducting selling, general and administrative expenses from gross profit, and adding back amortization of intangible assets, etc. recognized upon business combinations. Intersegment transactions are generally recorded at the same prices used in arm’s length transactions. Corporate items include corporate expenses not allocated to individual segments, such as expenditures for advanced R&D, and others. - 7 -
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(Millions of yen) Six-month period ended September 30, 2025 Six-month period ended September 30, 2026 Segment Profit (Loss) 561,803 699,651 Amortization of Intangible assets, etc. recognized upon business combinations (53,760) (56,391) Other income 96,918 2,630 Other expenses (32,760) (21,437) Financial income 102,264 22,940 Financial expenses (5,538) (22,536) Share of profits (losses) of investments accounted for using the equity method 12,965 2,633 EBIT (Earnings before interest and taxes) 681,892 627,490 Interest income 16,938 16,132 Interest charges (18,661) (13,688) Income before income taxes 680,169 629,934 (Millions of yen) Six-month period ended September 30, 2025 (A) Six-month period ended September 30, 2026 (B) (B)/(A) (%) Japan 1,714,963 1,872,106 10936% 33% North America 775,788 970,647 12516% 17% Europe 1,020,005 1,220,944 12021% 22% Asia 901,385 1,110,358 12319% 20% Other Areas 375,265 439,973 1178% 8% Overseas Revenues Subtotal 3,072,443 3,741,922 12264% 67% Total Revenues 4,787,406 5,614,028 117100% 100% Adjustments to income before income taxes from segment profit (loss) are as follows: (2) Revenues by Market - 8 -
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Notes (1) Notes Regarding Going Concern Not applicable. (2) Subsequent Events Sale of shares of Astemo, Ltd. (hereinafter “Astemo”) On December 16, 2025, the Company entered into an agreement regarding the transfer of a part of common stocks of Astemo, an equity-method associate of the Company in Corporate items of segment information, with Honda Motor Co., Ltd. On September 25, 2026, a portion of the shares of Astemo held by the Company, which were previously included in Investments accounted for using the equity method in the consolidated statement of financial position, were reclassified to Other current assets in the condensed semi-annual consolidated statement of financial position since they met the criteria as held-for-sale assets in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, during the six-month period ended September 30, 2026. Furthermore, on October 1, 2026, the Company completed the share transfer in accordance with the agreement. The consideration for the sale of the shares was 152,275 million yen. As a result of this transfer of shares, the Company’s ownership ratio of shares of Astemo decreased from 40.0% to 19.0%, and Astemo ceased to be an equity-method associate. The impact of the share transfer on net income attributable to Hitachi, Ltd. stockholders for the fiscal year ending March 31, 2027 is not material. - 9 -
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Summary of Consolidated Business Results, etc. For detailed information, please refer to the Presentation Material "Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2026" (disclosed on October 28, 2026) on TDnet and our website. (https://www.hitachi.com/en/ir/library/fr/) Cautionary Statement Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document. Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to: ・economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, as well as levels of demand in the major industrial sectors Hitachi serves; ・exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated; ・uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing; ・uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down equity securities that it holds; ・fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; ・credit conditions of Hitachi’s customers and suppliers; ・general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports and differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations; ・uncertainty as to Hitachi’s ability to respond to tightening of regulations to prevent climate change; ・uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information or that of its customers; ・uncertainty as to Hitachi’s ability to attract and retain skilled personnel; ・uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products; ・the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of infectious diseases, and geopolitical and social instability such as terrorism and conflict; ・estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; ・increased commoditization of and intensifying price competition for products; ・fluctuations in demand of products, etc. and industry capacity; ・uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demand of products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components; ・uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business; ・uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of incurring related expenses; - 10 -
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・uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness; ・the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures; ・uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity-method associates and joint ventures have become or may become parties; ・the possibility of incurring expenses resulting from any defects in products or services of Hitachi; ・uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; and ・uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs. The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in this document and in other materials published by Hitachi. *This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. - 11 -