Mitsubishi's Large-Frame Gas Turbine Backlog Reaches 35 GW

Mitsubishi Heavy Industries has reported a substantial increase in demand for its large-frame gas turbines, with a backlog of 35 GW. This is up from 23 GW in the previous year, according to the company's financial release. ## Strong Demand for Gas Turbines The company's Energy Systems division has seen a 56% rise in order intake year over year in the first quarter of its fiscal year, which began in March. This is largely due to the demand for large-frame gas turbines, with 10 orders booked in the first quarter alone. Four of these orders were for the United States, while six were for Japan. ## Production Capacity and Expansion Plans Mitsubishi's Senior Vice President and CFO, Hiroshi Nishio, has stated that the company still plans to double its production capacity relative to 2024 levels. However, the expansion is currently progressing smoothly, and the company is evaluating the need for additional capacity. Nishio has indicated that the company will provide a more detailed explanation of its growth plans and progress in the second half of the year. ## Selective Approach to Orders Mitsubishi is taking a selective approach to gas turbine orders, particularly among its core U.S. utility customers. This is due to the strong supply-demand environment and improving profitability on new orders. Nishio has stated that the company is being selective in the projects it contracts, and that orders booked this past quarter are currently scheduled for delivery between 2028 and 2030. ## Nuclear Power Solutions In addition to the increased demand for gas turbines, orders for light-water nuclear reactors, nuclear fuel, and other nuclear power solutions have also risen by 53% year-over-year. This is a significant increase, and highlights the company's growing presence in the nuclear power market. ## Restructuring and Business Divisions Mitsubishi Heavy Industries has recently restructured its business, moving its data center and energy management business into a new division called Industrial Solutions. This division oversees engines, air conditioning, and refrigeration systems, turbochargers, and automotive thermal systems. The Energy Systems division, which oversees gas, steam, and nuclear power system production as well as airplane engines, compressors, and marine machinery, has seen significant growth in demand for its products. ## Impact of Earthquake Mitsubishi has stated that it has not been significantly impacted by the July 28 earthquake that struck Kumamoto, in southern Japan. This is a positive sign for the company, and highlights its ability to withstand natural disasters.