Hitachi vs Honeywell: Revenue, Profit and Business Model
Hitachi reported ~$70.9B of revenue in FY2026 and ~$5.4B of net income. Honeywell reported $37.4B of revenue in FY2025 and $4.7B of net income.
Latest financial snapshot
Financial summary
Hitachi
Hitachi posted a ~$5.27 billion (¥787.3 billion) net loss for fiscal 2008, then the largest ever by a Japanese manufacturer. Under Takashi Kawamura and Hiroaki Nakanishi it cut loss-making consumer businesses, and later leaders sold listed subsidiaries such as Hitachi Chemical (2020), Hitachi Metals (2023), and a controlling stake in Hitachi Construction Machinery (2022). Revenue dipped from ~$72.9 billion (¥10.88 trillion) in FY2022 to ~$65.2 billion (¥9.73 trillion) in FY2023 as those units left, then climbed back to ~$71 billion (¥10.59 trillion) in FY2025 on organic growth. FY2025 adjusted EBITA was a record ~$8.78 billion (¥1.31 trillion) (12.4% margin) and net income was ~$5.38 billion (¥802.3 billion), up about 30%. In Q1 FY2026 (April-June 2026) revenue rose 20% to ~$18.2 billion (¥2,709.6 billion), helped by currency, and management raised full-year guidance.
Honeywell
Legacy Honeywell reported $37.4 billion of FY2025 sales from continuing operations (after the Solstice spin) and $4.7 billion of net income. Recast for the Aerospace spin-off, the continuing automation business had a $19.9 billion FY2025 sales base. In Q2 2026, Honeywell Technologies alone posted $5.19 billion of sales (up 3% reported, 4% organic), orders up 16%, a 19.0% segment margin (up 100 basis points), and adjusted EPS of $1.95. Reported EPS of $16.65 was inflated by a one-time gain on deconsolidating Quantinuum. After the quarter, management guided 2026 sales to $19.8-20.0 billion and adjusted EPS to $8.05-8.35, reflecting a 1-for-2 reverse stock split that cut the share count to about 317 million.
Revenue and profit by year
Hitachi
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$70.9B | ~$5.4B | 7.6% | +8.2% | Source |
| FY2025 | ~$65.5B | ~$4.1B | 6.3% | +0.6% | Source |
| FY2024 | ~$65.2B | ~$4B | 6.1% | -10.6% | Source |
| FY2023 | ~$72.9B | ~$4.3B | 6.0% | +6.0% | Source |
| FY2022 | ~$68.8B | ~$3.9B | 5.7% | — | Source |
Honeywell
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $37.4B | $4.7B | 12.6% | +7.8% | Source |
| FY2024 | $34.7B | $5.7B | 16.4% | +5.2% | Source |
| FY2023 | $33B | $5.7B | 17.1% | -6.9% | Source |
| FY2022 | $35.5B | $5B | 14.0% | +3.1% | Source |
| FY2021 | $34.4B | $5.5B | 16.1% | +5.4% | Source |
| FY2020 | $32.6B | $4.8B | 14.6% | -11.1% | Source |
| FY2019 | $36.7B | $6.1B | 16.7% | -12.2% | Source |
| FY2018 | $41.8B | $6.8B | 16.2% | +3.1% | Source |
| FY2017 | $40.5B | $1.5B | 3.8% | +3.1% | Source |
| FY2016 | $39.3B | $4.8B | 12.2% | — | Source |
Where the revenue comes from
Hitachi
- Digital Systems & Services
Reported sector
Japanese IT systems for finance and government, GlobalLogic digital engineering, cloud and managed services, and Lumada solutions.
- Energy
Reported sector
Hitachi Energy grid infrastructure, HVDC, transformers, and related service contracts.
- Mobility
Reported sector
Hitachi Rail trains, signalling and train control (including former Thales GTS), and maintenance.
- Connective Industries
Reported sector
Building systems, industrial products and systems, Hitachi High-Tech, and, until its sale, home appliances.
Honeywell
- Building Automation~38%
Building controls, fire, security, energy management, software, services, and connected facility systems.
- Industrial and Process Automation~46%
Process controls, warehouse automation, sensors, safety products, productivity systems, and industrial software.
- Software, Services, and Aftermarket~16%
Recurring software, upgrades, service contracts, connected worker products, and installed-base support.
Business model and strategy
Hitachi
How it makes money
Hitachi is a B2B infrastructure and IT company. It sells long-lived physical assets (transformers, HVDC converter stations, trains, signalling, elevators, semiconductor metrology tools) and then earns recurring service, maintenance, and software revenue on that installed base. Lumada is the umbrella for the data, AI, and digital services layered on top, and Hitachi reports Lumada as a growing share of total revenue.
Growth strategy
Hitachi grows by attaching software and services to its installed base and by reshaping its portfolio. It is expanding Hitachi Energy factory capacity for transformers and HVDC, integrating Thales GTS into Hitachi Rail, and scaling Lumada through GlobalLogic and AI partnerships.
Competitive advantage
Hitachi's edge is owning both the operational technology and the IT. Hitachi Energy (built on ABB's former Power Grids business) is one of a handful of suppliers able to deliver HVDC links and large power transformers at scale, Hitachi Rail became a top-tier signalling supplier after buying Thales GTS in 2024, and GlobalLogic plus Hitachi's Japanese IT business supply the software.
Honeywell
How it makes money
Honeywell Technologies makes money by selling and servicing automation systems for three end markets. Building Automation sells fire, security, access-control, and building-management systems plus installation and service. Industrial Automation sells sensors, gas detection, and control products.
Growth strategy
Honeywell's growth plan is to concentrate capital on automation. Since 2023 it has spent about $11.5 billion on acquisitions such as Carrier's Access Solutions business, Air Products' LNG process business, Sundyne, Compressor Controls, SCADAfence, Li-ion Tamer, and Johnson Matthey's Catalyst Technologies, while selling lower-fit units (PPE in 2025, WWS and PSS in 2026).
Competitive advantage
Honeywell's edge is its installed base. Decades of control systems in refineries, LNG plants, and commercial buildings create switching costs, because replacing a distributed control system or a fire and life-safety network is risky and expensive.
Questions about Hitachi vs Honeywell
Which company has higher revenue — Hitachi, Ltd. or Honeywell Technologies?
Hitachi, Ltd. reported ~$70.9B (FY2026), while Honeywell Technologies reported $37.4B (FY2025). By last reported revenue, Hitachi, Ltd. is the larger business, with Honeywell Technologies reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Hitachi, Ltd. vs Honeywell Technologies?
Hitachi, Ltd.'s market capitalisation stands at $157.8B, while Honeywell Technologies's is $67.4B. Hitachi, Ltd. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Honeywell Technologies.
Which is more financially efficient — Hitachi, Ltd. or Honeywell Technologies?
Hitachi, Ltd. generates $246k / employee in revenue per employee, while Honeywell Technologies generates $749k / employee. Honeywell Technologies shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Hitachi, Ltd. and Honeywell Technologies make money?
Hitachi, Ltd. and Honeywell Technologies generate revenue in fundamentally different ways. Hitachi, Ltd.: Hitachi is a B2B infrastructure and IT company. Honeywell Technologies: Honeywell Technologies makes money by selling and servicing automation systems for three end markets.
Which company is valued higher relative to revenue — Hitachi, Ltd. or Honeywell Technologies?
On a price-to-sales (P/S) basis, Hitachi, Ltd. trades at 2.2x P/S and Honeywell Technologies at 1.8x P/S. Hitachi, Ltd. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Honeywell Technologies. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Hitachi, Ltd. bigger than Honeywell Technologies?
By last reported revenue, Hitachi, Ltd. (~$70.9B (FY2026)) is the larger company compared to Honeywell Technologies ($37.4B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Hitachi vs Honeywell overview