Nuclear Surge Fuels Revenue Gains
Hitachi, Ltd. posted a sharp 28% year-over-year revenue increase in its Energy segment for the second quarter of fiscal 2026, hitting ¥960.4 billion—roughly $6 billion. While power grid equipment remains the bedrock of the division’s income, the nuclear arm is surging, recording a 48% increase over the same period last year.
This momentum arrives as the conglomerate prepares to deliver the first of four BWRX-300 small modular reactors (SMRs) to Ontario Power Generation in 2030.
Expanding the SMR Footprint
According to the company’s 2025 annual report, Hitachi intends to use the Ontario construction as a “foothold” to advance its SMR business into North America, Poland and other European markets.
These 300-MW reactors are currently under development in partnership with GE Vernova. Despite the aggressive expansion, Hitachi’s latest financial disclosures flag general risks associated with complex global infrastructure projects, though the company did not specifically single out the nuclear division for these potential hazards.
Data Centers Drive Orders
The Energy segment’s total orders soared to ¥1,566.2 billion, or nearly $10 billion, marking a 47% increase year over year. CFO Tomomi Kato attributed this broad-based growth to the unrelenting surge in data center construction.
Hitachi’s Power Grid division, which manufactures high-voltage components, energy storage systems, and power conversion products, generated ¥893.7 billion ($5.7 billion) in quarterly revenue—a 27% increase from the previous year. To capture the electrification trend, the company is layering digital services over its hardware. The HMAX Energy platform, for instance, aims to reduce revenue loss from equipment downtime by up to 60%. Simultaneously, a collaboration with NVIDIA is pushing a “grid-to-rack architecture” for 800-volt data center systems, a design NVIDIA and its customers expect to become the industry standard for high-performance computing.
Managing Inflation in a High-Demand Market
With an expanding order backlog, Hitachi faces the twin pressures of tight delivery timelines and rising costs. CFO Tomomi Kato confirmed the company is now utilizing “indexing” on long-lead contracts to pass along inflationary cost increases during production.
Kato noted that without these protective measures, the company would be unable to accept long-term contracts. For now, the company reports no payment issues or project delays related to these agreements.
Hitachi Targets 2030 Reactor Delivery and Digital Performance
Hitachi’s immediate focus remains the 2030 delivery of the BWRX-300 reactors to Ontario Power Generation. The Power Grid division continues to serve as the primary beneficiary of data center infrastructure demand, supplying the high-voltage components required for large-scale operations.
To maintain profitability across these long-term energy contracts, the company relies on indexing to hedge against cost volatility. Meanwhile, the HMAX Energy platform serves as the core digital solution for customers seeking to improve performance and recover up to 60% of revenue lost to equipment downtime.
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