Mitsubishi Heavy Industries (MHI) announced on Tuesday its ambitious mid-term strategy, forecasting a substantial rise in both sales and profits over the next three years. The company anticipates sales will increase by 20%, reaching an all-time high of ¥5.7 trillion ($36.3 billion), with operating profit expected to soar by 60% to ¥450 billion. This growth is primarily driven by MHI’s leading position in the global gas turbine market amid surging electricity demand fueled by the generative AI boom.
As the world’s largest turbine manufacturer, MHI plans to bolster its dominance in the gas turbine sector. CEO Seiji Izumisawa emphasized the company’s commitment to maintaining and expanding its market share, which stood at 36% last year, ahead of competitors GE and Siemens. Despite earlier predictions that gas turbine demand would decline with the shift to renewable energy, the persistent and increasing electricity demand has reinvigorated their importance. Advances in hydrogen turbine technology and carbon capture are also key factors in their renewed relevance.
MHI prides itself on the efficiency and reliability of its gas turbines, which boast a 64% electricity output to fuel input ratio and a 99.5% operational uptime. The company sees new growth opportunities in smaller generators for data centers and chip factories, sectors experiencing rapid expansion due to AI advancements. The potential for MHI’s turbines to operate on hydrogen is particularly appealing to these industries.
In pursuit of sustainable energy solutions, MHI is developing next-generation turbines that burn hydrogen to reduce carbon emissions. The company has already created a small hydrogen-only turbine and plans to test a large turbine using a natural gas and hydrogen mix this year, with a goal of offering fully hydrogen-powered turbines by 2030.
Additionally, MHI is advancing its carbon capture and storage (CCS) technology, highlighted by its involvement in the world’s largest carbon capture project in Texas, in collaboration with ExxonMobil.
Beyond energy, MHI foresees significant growth in its defense and aerospace sectors. The company expects defense sales to double within three years, driven by escalating global security concerns. As Japan’s largest defense contractor, MHI is expanding its production capabilities and pursuing international collaborations, such as the development of a sixth-generation fighter jet with the U.K. and Italy.
MHI’s strategic initiatives position it for substantial growth, leveraging technological advancements and expanding market opportunities across multiple sectors.
