Mitsubishi Heavy Industries Senior Vice President and CFO Hiroshi Nishio said at an earnings briefing on August 6 that demand for gas turbines and nuclear power has met or exceeded expectations just three months into fiscal 2026. According to the English-language meeting minutes provided by the company, Nishio noted that orders for the newly reorganized energy systems segment rose 56% year-on-year in the first quarter ending in June. During the quarter, the company received orders for 10 large gas turbines, with 4 sold to the United States and 6 to Japan.

According to the company's financial report, Mitsubishi sold 35 large gas turbines in fiscal 2025 (ending March 2026), with a total capacity of 16 gigawatts. The current backlog of large gas turbine orders has reached 35 gigawatts, a significant increase from 23 gigawatts in the same period last year.

"Demand for large gas turbines is broadly in line with our expected strong levels, or even slightly above expectations," Nishio said.

Nishio told analysts that the company still plans to double production capacity compared to 2024 levels. Although he said capacity expansion is "progressing smoothly," he also noted that the company is still evaluating whether further capacity increases are needed and will provide more detailed growth plans and progress updates in the second half of the year.

Nishio said Mitsubishi does not intend to immediately double gas turbine orders. He said orders signed this quarter are currently scheduled for delivery between 2028 and 2030.

"In the large gas turbine market where we focus, especially among core U.S. utility customers, we remain selective about contracted projects," he said. "In this market and customer segment, supply-demand dynamics remain tight, and the trend of improving profitability on new orders has not changed."

Data at a glance: Mitsubishi Heavy Industries fiscal 2026 first quarter

  • 35 gigawatts: Total large gas turbine order backlog, up from 23 gigawatts in the same period last year.
  • 1.1 trillion yen (approximately $6.8 billion): Total gas and nuclear power orders from March to June.
  • 4 gigawatts: Large gas turbine sales in the first quarter.

Mitsubishi also reported one-time gains related to the sale of power generation system stakes in South America and elsewhere, amounting to 10 billion yen (approximately $63 million), plus a one-time gain of 15 billion yen (approximately $94 million) from a single large power generation project contract, which Nishio said has not been fully settled and declined to answer related questions.

Although large gas turbine orders account for most of the growth in energy systems sales, orders for light-water nuclear reactors, nuclear fuel, and other nuclear power solutions also rose approximately 53% year-on-year, according to the company's financial disclosure released on August 4.

Mitsubishi Heavy Industries underwent a business reorganization on April 1, merging data center and energy management businesses into a new "Industrial Solutions" segment, which handles engines, air conditioning and refrigeration systems, turbochargers, and automotive thermal management systems. The new segment replaced the former "Logistics, Thermal, and Drive Systems" segment, after Mitsubishi sold its forklift manufacturing business to private equity firm Japan Industrial Partners.

The Energy Systems segment is responsible for gas, steam, and nuclear power system production, as well as aircraft engines, compressors, and marine machinery.

Nishio also mentioned that the earthquake that struck Kumamoto Prefecture in southern Japan on July 28 had no significant impact on the company's operations.