Unknown Analyst's questions to Hitachi Ltd (HTHIY) leadership • Q2 2025
Question
An unknown analyst asked for the reasons behind Hitachi Energy's Q2 revenue and profitability decline despite a large order book, and inquired about the target margin for the service business and its differentiation from competitors.
Answer
Hitachi Energy CEO Andreas Schierenbeck explained that a large project shifted out of Q2, impacting order recognition. Executive Tomomi Kato added that Q1 was exceptionally strong due to project timing, causing quarterly lumpiness, but the long-term growth trend is stable. Schierenbeck stated that service margins will be 'accretive' (higher than the business average) and the strategy is to leverage their large installed base, ensuring service doesn't lose focus amid large project sales.