en.Wedoany.com Reported - Mitsubishi Heavy Industries' Energy Systems division saw orders in the first quarter of the company's fiscal year (starting in March) rise 56% year-on-year. Senior Vice President and Chief Financial Officer Hiroshi Nishio stated at an August 6 briefing that just three months into the fiscal year, demand for gas turbines and nuclear power has met or exceeded expectations.

In the first quarter, the company secured 10 large gas turbine orders, with 4 units destined for the United States and 6 for Japan. In fiscal 2025, Mitsubishi sold 35 large gas turbines with a total installed capacity of 16 GW; the current backlog for such equipment stands at 35 GW, up from 23 GW a year earlier. Nishio noted that demand for large gas turbines is broadly in line with, or slightly above, the company's previously anticipated strong levels. In the focused large gas turbine market, particularly among core U.S. utility customers, the company remains selective in contracting projects, and the robust supply-demand environment in that market and customer segment, along with the trend of improved profitability on new orders, remains unchanged.

Key figures: Total large gas turbine backlog stands at 35 GW, up from 23 GW a year earlier; gas and nuclear power orders totaled ¥1.1 trillion ($6.8 billion) between March and June; and large gas turbines sold in the first quarter represent a total installed capacity of 4 GW. The company also reported a one-time gain of ¥10 billion ($63 million) related to the sale of power generation system equity interests in South America and other regions, as well as ¥15 billion ($94 million) from a contract for a large power generation project that has not yet been fully settled; Nishio declined to answer questions related to that project.

On capacity, Mitsubishi still plans to double its gas turbine production capacity compared to 2024. Nishio said the expansion is "progressing smoothly," and the company is also evaluating additional capacity needs, with more detailed updates on growth plans and progress to be provided in the second half of this year. However, Mitsubishi does not intend to immediately begin accepting orders for twice the volume of gas turbines; orders secured in the previous quarter are currently scheduled for delivery between 2028 and 2030.

Beyond large gas turbines, orders for light-water nuclear reactors, nuclear fuel, and other nuclear power solutions also grew approximately 53% year-on-year. The Energy Systems division handles production of gas, steam, and nuclear power systems, as well as aircraft engines, compressors, and marine machinery.

Mitsubishi Heavy Industries underwent a business restructuring on April 1, integrating data center and energy management operations into the new Industrial Solutions division, which oversees engines, air conditioning and refrigeration systems, turbochargers, and automotive thermal systems. The company had previously sold its forklift manufacturing business to Japan Industrial Partners, replacing the former Logistics, Thermal, and Drive Systems division.

Nishio also stated that the company was not significantly affected by the earthquake that struck Kumamoto in southern Japan on July 28.