[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4471 followers Created: 2025-04-06 23:26:07 UTC $HTHIY Hitachi, Ltd. Q3 FY2024 Earnings Call Key Highlights: ⚡ Strong Growth Across Core Segments (GEM, DSS, CI) All three sectors—Green Energy & Mobility (GEM), Digital Systems & Services (DSS), and Connective Industries (CI)—reported year-on-year revenue and profit growth in Q3. GEM revenues surged XX% YoY driven by strong demand in renewable energy, grid infrastructure (HVDC, switchgear), and railway systems. DSS revenues increased 10%, benefiting from modernization of mission-critical IT systems, DX (digital transformation) projects, and growth in cloud and security-related services. CI posted X% revenue growth, notably in healthcare analyzers, semiconductor equipment, and domestic system integration projects. 📊 Key Financial Metrics and Margin Expansion Adjusted EBITA across the three sectors rose XX% YoY, with overall EBITA margin improving by XXX percentage points to 12%. FY2024 adjusted EBITA margin guidance raised to 11.4%, a 1.4-point improvement YoY, surpassing the 0.5-point increase in FY2023. Profit attributable to shareholders declined YoY due to FX losses and lack of prior-year gains from Hitachi Astemo equity sales, though core operating income still improved. 💸 Robust Core Free Cash Flow and Strong Balance Sheet Core free cash flow reached ¥205.6 billion in Q3, up ¥50 billion YoY, primarily due to advanced payments for large infrastructure projects. FY2024 free cash flow forecast was increased to ¥610 billion, equaling net income for a XXX% conversion rate. Interest-bearing debt rose due to working capital and acquisitions, with debt-to-equity at 0.3x, maintaining conservative leverage. 🌍 Regional Momentum and Global Diversification Japan: DSS and CI delivered XX% and X% growth, respectively, with robust demand for domestic IT and infrastructure projects. North America: GEM up XX% on large energy projects; CI rose XX% amid semiconductor capex recovery; DSS grew X% despite storage softness. Europe: Exceptional XX% revenue growth led by Thales GTS rail acquisition and strong energy orders; GEM up 45%. ASEAN, India, and other regions also saw strong growth, especially in power grids and mobility. 🚄 Segment Outlooks and Strategic Priorities DSS: Full-year revenue expected to grow 10%, with GlobalLogic’s digital engineering up 18%. Storage business remains under pressure but targeted to improve with AI-driven solutions (Hitachi iQ). GEM: FY2024 revenue growth forecast raised to 24%. Hitachi Energy’s HVDC, transformers, and Lumada services performing exceptionally. Corporate-level upside of ¥15 billion anticipated beyond segment guidance. CI: Forecast unchanged at X% revenue growth. Building Systems and Industrial Digital units contributed to margin improvement (12.5% in Q3). Focus on expanding beyond elevators to energy and facility management. 💡 Lumada Business Expanding Rapidly Q3 Lumada revenue up XX% YoY; full-year forecast raised to XX% growth with XX% margin (+1 point YoY). Growth led by DX projects in DSS, managed services in GEM (Hitachi Energy, rail systems), and connected industrial solutions in CI. Notable expansion through HMAX (AI-powered railway diagnostics) and acquisition of UK-based Omnicom. 🔄 Organizational Restructuring to Accelerate Growth GEM to be split into Energy and Mobility due to large scale and complexity; each now reporting directly to the CEO. CI to be restructured into three BUs to increase management speed and foster synergies. New Strategic SIB (Social Innovation Business) established to focus on data centers, batteries, and healthcare. 📦 Strong Momentum in Hitachi Energy and Grid Integration Hitachi Energy recorded $XXX trillion in Q3 orders, up XX% YoY, driven by demand across Europe, Middle East, India, and ASEAN. Orders exceeding expectations; long-term visibility supported by 3–5 year HVDC project cycle and 1–2 year equipment projects. Profitability of project backlog is steadily improving, aided by scale, digital integration, and cost competitiveness. 🧠 Digital and AI-Driven Growth Strategy Domestic IT market continues to grow due to mainframe replacement and modernization, where Hitachi is positioned strongly with mission-critical system experience and OT/IT convergence. Generative AI (e.g., DeepSeek) considered a growth enabler for data center and DX demand, though subject to further evaluation. Integration of digital into energy and infrastructure sectors accelerating through Lumada platform. 💵 Capital Allocation and Shareholder Returns Total FY2024 shareholder returns expected to reach ¥389.2 billion, up ¥140 billion YoY. Management aims for multiyear return ratio near 50%, balancing investment in growth (e.g., $6B CapEx in Hitachi Energy) with dividends and share buybacks. 🔧 Challenges and Mitigation Chinese real estate downturn impacting new elevator installations, though revenue and profit growth supported by service expansion and cost reductions. Storage segment remains challenged by intense competition but expected to recover via cost efficiency and AI-related demand. 📅 Mid-Term Management Plan Under Development New plan to be presented in FY2025, with a focus on global growth, digital integration, and One Hitachi strategy to unlock cross-segment value.  XXX engagements  **Related Topics** [coins energy](/topic/coins-energy) [quarterly earnings](/topic/quarterly-earnings) [$6501t](/topic/$6501t) [hitachi](/topic/hitachi) [$hthiy](/topic/$hthiy) [Post Link](https://x.com/LongYield/status/1909024851949662509)
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LongYield @LongYield on x 4471 followers
Created: 2025-04-06 23:26:07 UTC
$HTHIY Hitachi, Ltd. Q3 FY2024 Earnings Call Key Highlights:
⚡ Strong Growth Across Core Segments (GEM, DSS, CI)
All three sectors—Green Energy & Mobility (GEM), Digital Systems & Services (DSS), and Connective Industries (CI)—reported year-on-year revenue and profit growth in Q3.
GEM revenues surged XX% YoY driven by strong demand in renewable energy, grid infrastructure (HVDC, switchgear), and railway systems.
DSS revenues increased 10%, benefiting from modernization of mission-critical IT systems, DX (digital transformation) projects, and growth in cloud and security-related services.
CI posted X% revenue growth, notably in healthcare analyzers, semiconductor equipment, and domestic system integration projects.
📊 Key Financial Metrics and Margin Expansion
Adjusted EBITA across the three sectors rose XX% YoY, with overall EBITA margin improving by XXX percentage points to 12%.
FY2024 adjusted EBITA margin guidance raised to 11.4%, a 1.4-point improvement YoY, surpassing the 0.5-point increase in FY2023.
Profit attributable to shareholders declined YoY due to FX losses and lack of prior-year gains from Hitachi Astemo equity sales, though core operating income still improved.
💸 Robust Core Free Cash Flow and Strong Balance Sheet
Core free cash flow reached ¥205.6 billion in Q3, up ¥50 billion YoY, primarily due to advanced payments for large infrastructure projects.
FY2024 free cash flow forecast was increased to ¥610 billion, equaling net income for a XXX% conversion rate.
Interest-bearing debt rose due to working capital and acquisitions, with debt-to-equity at 0.3x, maintaining conservative leverage.
🌍 Regional Momentum and Global Diversification
Japan: DSS and CI delivered XX% and X% growth, respectively, with robust demand for domestic IT and infrastructure projects.
North America: GEM up XX% on large energy projects; CI rose XX% amid semiconductor capex recovery; DSS grew X% despite storage softness.
Europe: Exceptional XX% revenue growth led by Thales GTS rail acquisition and strong energy orders; GEM up 45%.
ASEAN, India, and other regions also saw strong growth, especially in power grids and mobility.
🚄 Segment Outlooks and Strategic Priorities
DSS: Full-year revenue expected to grow 10%, with GlobalLogic’s digital engineering up 18%. Storage business remains under pressure but targeted to improve with AI-driven solutions (Hitachi iQ).
GEM: FY2024 revenue growth forecast raised to 24%. Hitachi Energy’s HVDC, transformers, and Lumada services performing exceptionally. Corporate-level upside of ¥15 billion anticipated beyond segment guidance.
CI: Forecast unchanged at X% revenue growth. Building Systems and Industrial Digital units contributed to margin improvement (12.5% in Q3). Focus on expanding beyond elevators to energy and facility management.
💡 Lumada Business Expanding Rapidly
Q3 Lumada revenue up XX% YoY; full-year forecast raised to XX% growth with XX% margin (+1 point YoY).
Growth led by DX projects in DSS, managed services in GEM (Hitachi Energy, rail systems), and connected industrial solutions in CI.
Notable expansion through HMAX (AI-powered railway diagnostics) and acquisition of UK-based Omnicom.
🔄 Organizational Restructuring to Accelerate Growth
GEM to be split into Energy and Mobility due to large scale and complexity; each now reporting directly to the CEO.
CI to be restructured into three BUs to increase management speed and foster synergies.
New Strategic SIB (Social Innovation Business) established to focus on data centers, batteries, and healthcare.
📦 Strong Momentum in Hitachi Energy and Grid Integration
Hitachi Energy recorded $XXX trillion in Q3 orders, up XX% YoY, driven by demand across Europe, Middle East, India, and ASEAN.
Orders exceeding expectations; long-term visibility supported by 3–5 year HVDC project cycle and 1–2 year equipment projects.
Profitability of project backlog is steadily improving, aided by scale, digital integration, and cost competitiveness.
🧠 Digital and AI-Driven Growth Strategy
Domestic IT market continues to grow due to mainframe replacement and modernization, where Hitachi is positioned strongly with mission-critical system experience and OT/IT convergence.
Generative AI (e.g., DeepSeek) considered a growth enabler for data center and DX demand, though subject to further evaluation.
Integration of digital into energy and infrastructure sectors accelerating through Lumada platform.
💵 Capital Allocation and Shareholder Returns
Total FY2024 shareholder returns expected to reach ¥389.2 billion, up ¥140 billion YoY.
Management aims for multiyear return ratio near 50%, balancing investment in growth (e.g., $6B CapEx in Hitachi Energy) with dividends and share buybacks.
🔧 Challenges and Mitigation
Chinese real estate downturn impacting new elevator installations, though revenue and profit growth supported by service expansion and cost reductions.
Storage segment remains challenged by intense competition but expected to recover via cost efficiency and AI-related demand.
📅 Mid-Term Management Plan Under Development
New plan to be presented in FY2025, with a focus on global growth, digital integration, and One Hitachi strategy to unlock cross-segment value.
XXX engagements
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