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    GEV
    Earnings call· Mar 2026(Q1 FY26)

    GE Vernova Q1 FY26 earnings call GEV

    Apr 22, 2026 Source

    Executive summary

    GE Vernova Q1 FY26 — Strong Orders and Raised Full-Year Guidance

    GE Vernova delivered a strong Q1 FY26, marked by robust order growth and significant free cash flow generation, driven by accelerating global electrification and data center demand. The company raised its full-year guidance for revenue, adjusted EBITDA, and free cash flow, reflecting confidence in its integrated solutions strategy and ongoing productivity improvements, despite continued headwinds in the Wind segment.

    Highlights

    5

    • Total orders increased 71% year-over-year to $18.3 billion in Q1 FY26.

    • Total backlog grew to $163 billion, with equipment backlog up 67% year-over-year to $76 billion.

    • Adjusted EBITDA grew 87% year-over-year to $896 million, with margin expansion of 390 basis points.

    • Free cash flow reached $4.8 billion in Q1 FY26, significantly exceeding full-year 2025 FCF of $3.7 billion.

    • Electrification orders from data centers in Q1 FY26 totaled $2.4 billion, surpassing full-year 2025 data center orders.

    Concerns

    3

    • Wind segment reported EBITDA losses of $382 million in Q1 FY26, in line with expectations.

    • The U.S. market for new onshore wind equipment remains soft due to permitting delays and tariff uncertainty.

    • Tariffs are projected to have a net impact of $250 million to $350 million on the company in FY26.

    Guidance & targets

    22
    CategoryTargetConfidence
    Total Backlog
    $200 billion
    high materiality
    High
    Gas Power Contracts
    10 to 15 gigawatts
    medium materiality
    High
    Gas Power Contracts
    at least 110 gigawatts
    medium materiality
    High
    NRC License for Clinch River
    as soon as the second half of '26
    low materiality
    Medium
    Solid-State Transformer (SST) Product Delivery
    Fall of this year
    low materiality
    High
    Solid-State Transformer (SST) Potential Order
    first half of '27
    low materiality
    Medium
    Full-Year 2026 Revenue
    $44.5 million to $45.5 billion
    high materiality
    High
    Full-Year 2026 Adjusted EBITDA Margin
    12% to 14%
    high materiality
    High
    Full-Year 2026 Free Cash Flow
    $6.5 billion and $7.5 billion
    high materiality
    High
    Full-Year 2026 Power Organic Revenue Growth
    16% to 18%
    medium materiality
    High
    Full-Year 2026 Power EBITDA Margins
    17% to 19%
    medium materiality
    High
    Full-Year 2026 Electrification Revenue
    $14 billion to $14.5 billion
    medium materiality
    High
    Full-Year 2026 Electrification EBITDA Margin
    18% to 20%
    medium materiality
    High
    Full-Year 2026 Wind Organic Revenue
    down low double digits
    medium materiality
    High
    Full-Year 2026 Wind EBIT Losses
    approximately $400 million
    medium materiality
    High
    Full-Year 2026 Corporate Costs
    $450 million and $500 million
    low materiality
    High
    Q2 2026 Power Revenue Growth
    15% to 17%
    medium materiality
    High
    Q2 2026 Power EBITDA Margin
    approximately 17% to 18%
    medium materiality
    High
    Q2 2026 Electrification Revenue
    $3.3 billion and $3.5 billion
    medium materiality
    High
    Q2 2026 Electrification EBITDA Margin
    modestly above 1Q 2026 levels
    medium materiality
    High
    Q2 2026 Wind Revenue Decline
    mid-teens rate year-over-year
    medium materiality
    High
    Q2 2026 Wind EBITDA Losses
    $200 million and $300 million
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Power
    The segment delivered strong demand, continued revenue growth, and significant EBITDA margin expansion, driven by favorable price, more profitable volume, and productivity. Equipment revenue increased from higher volume and price in heavy-duty gas turbine and aeroderivative growth. Services revenue increased due to growth at nuclear power.
    Orders Growth: 59% YoYGas Power Equipment Orders: more than doubled YoYPower Services Orders: +29% YoYGas Turbines Shipped: 25 units
    		increased 10%10%—16.3%
    Electrification
    The segment achieved significant orders and revenue growth, and EBITDA margin expansion. Orders remained strong at roughly 2.5x revenue, driven by growing grid equipment demand, partially supporting data center development. Revenue growth was across all regions, with increased volume at power transmission from switchgear and transformers. Margin expansion was led by strong volume, productivity, and favorable pricing.
    Orders Growth: 86% YoYEquipment Orders North America: tripled YoYEquipment Orders Asia: tripled YoYProlec Revenue: ~$500MProlec EBITDA Margin: >20%
    		increased 61% (U.S. GAAP), 29% (organic)61% (U.S. GAAP), 29% (organic)—17.8%
    Wind
    The team focused on discipline, delivering stronger performance in onshore wind services and successfully completing offshore project installations. Revenue decreased due to lower onshore equipment deliveries, partially offset by higher onshore services and offshore revenues. EBITDA losses were in line with expectations, primarily due to lower equipment deliveries, tariffs, and higher contract losses at offshore wind.
    Orders Growth: 85% YoYOnshore Wind Services Margin: double-digit expansion YoY
    		decreased 25%-25%—($382M) loss

    Operational metrics

    26
    R&D and CapEx Combined
    ~$700M
    Q1 FY26

    Investment in R&D and CapEx combined, with R&D growing by approximately 25%.

    R&D Growth
    ~25%YoY
    Q1 FY26

    Growth in R&D, including work to commercialize new technologies.

    Business Dispositions Pretax Cash
    ~$900M
    Q1 FY26

    Generated from business dispositions to simplify the portfolio.

    Manufacturing Software Business Sale Proceeds
    ~$600M
    Q1 FY26

    Pretax proceeds from the sale of the manufacturing software business.

    China XD Grid & Merchant Transmission Facility Sale Proceeds
    ~$300M
    Q1 FY26

    Pretax proceeds from selling an additional ownership stake in China XD grid and an interest in a merchant transmission facility.

    Gains from M&A Transactions
    $4.5B
    Q1 FY26

    Primarily resulting from the acquisition of Prolec GE, excluded from adjusted EBITDA.

    Debt Issued
    $2.6B
    Q1 FY26

    Debt issued in the first quarter.

    Gross Debt to Adjusted EBITDA
    <1x
    Q1 FY26

    Company remains below target leverage ratio.

    Cash Balance
    ~$10.2B
    End of Q1 FY26

    Healthy cash balance after capital returns.

    Capital Returned to Shareholders
    ~$1.4B
    Q1 FY26

    Includes dividend and share repurchases.

    Share Repurchases
    $1.3B
    Q1 FY26

    Amount of share repurchases in the quarter.

    Working Capital Cash Benefit
    $5.3B
    Q1 FY26

    Driven primarily by higher down payments on increased orders and slot reservations at Power, and higher orders at Electrification.

    Tariff Impact
    $250M-$350M
    FY26

    Expected net impact of tariffs for the full year 2026.

    G&A Reduction Target
    $600M
    by 2028

    On track to achieve the G&A reduction target.

    Legacy Data Platforms Retired
    15
    Q1 FY26

    Retired by launching a comprehensive company-wide data lake.

    Cost Reduction from Data Platform Retirement
    ~$15M
    annually

    Expected annual cost reduction from retiring legacy data platforms.

    CEO Kaizen Week EBITDA Improvement Opportunity
    >$100M
    future years

    Identified opportunity from Kaizen Week focused on improving safety, quality, delivery, and cost.

    Prolec Transformer Rework Hours Decrease
    ~70%
    Q1 FY26

    Achieved in one Kaizen focused on improving subassembly process for transformer tanks.

    Prolec Transformer Output Improvement
    ~40%
    Q1 FY26

    Achieved in one Kaizen focused on improving subassembly process for transformer tanks.

    AI-Based Process Transformations
    13
    start of FY26

    Number of AI-based process transformations at the start of the year, with a goal to double them across GEV in 2026.

    HA Units on Order
    231
    Q1 FY26

    Total HA units on order, with over 100 not yet commissioned.

    Gas Power Production Workers Added
    ~1,800
    2025-2026

    Largest portion added in Gas Power factories to support production.

    Electrification Annual Addressable Market
    ~$300B
    by end of decade

    Projected annual addressable market based on current offerings.

    Synchronous Condensers Annual Market Opportunity
    $5B+
    annual

    Market opportunity for synchronous condensers, critical for grid resiliency.

    Grid Resiliency Products Market Growth
    low double digits
    through end of decade

    Expected growth rate for the industry demand for grid resiliency products.

    Corporate Costs
    $450M-$500M
    FY26

    Full-year 2026 corporate costs, typically uneven across quarters due to compensation timing and portfolio activity.

    Industry KPIs

    12
    MetricValueDetails
    Equipment pricing10 to 20 points higher%
    Book to bill ratio~2
    Service attach mixdouble-digit margin expansion%
    Orders bookings growth71%%
    Gigawatts under contract100 GWGW
    Capacity expansion program20 GWGW
    M a acquisition contribution$500MUSD
    Backlog by segment end market$163BUSD
    Backlog shape delivery window3 years
    Data center exposure pipeline$2.4BUSD
    Next gen architecture milestonesfirst product delivery
    Customer deposits advance payments$5.3BUSD

    Orderbook & backlog

    9
    Total Backlog$163BQ1 FY26

    up $13B sequentially

    Equipment Backlog$76BQ1 FY26

    up ~$12B sequentially, +67% YoY

    Driven by Electrification (including Prolec) and Power. Equipment backlog margin remains healthy.

    Services Backlog$87BQ1 FY26

    +12% YoY

    Led by Power.

    Electrification Backlog$42BQ1 FY26

    up from $9B (YE 2022)

    Significant growth since year-end 2022.

    HVDC Backlog~$10BQ1 FY26

    To be delivered in the coming years, primarily in Europe, with increasing momentum in Asia.

    Prolec Backlog$5BQ1 FY26

    up $1B since 3Q FY25 announcement (+25%)

    Reflects customer enthusiasm for the acquisition.

    Gas Power Total Gigawatts Under Contract100 GWQ1 FY26

    up from 83 GW sequentially

    80% with traditional customers, 20% explicitly supporting data centers.

    Gas Power Backlog (Firm Orders)44 GWQ1 FY26

    up from 40 GW sequentially

    Gas Power Slot Reservation Agreements56 GWQ1 FY26

    up from 43 GW sequentially

    Product announcements

    3
    ProductTypeDetails
    Energy Management System (EMS)launch
    Stability Block (MV UPS solution)roadmap
    Solid-State Transformer (SST)milestone

    Deals & partnerships

    2
    Prolec GEacquisition$5.3B

    Completed the acquisition of the remaining 50% ownership stake of Prolec GE for $5.3 billion in early February.

    U.S. and Japanese governmentspartnershipup to $40B

    Announcement of up to $40 billion for GE Vernova Hitachi to build SMRs in the U.S., representing government leadership to reindustrialize the industry.

    Capital programs

    1
    Gas Power Annualized Output Capacity Expansionon track
    Spent to date: installed over 280 new machines

    Benefit: 20 GW annualized output

    Installed over 280 new machines in gas power factories and remain on track to reach 20 gigawatts of annualized output by 3Q.

    Risks & headwinds

    4
    Wind EBITDA lossesQ1 FY26

    $382M

    Mitigation: Partially offset by improved onshore services and offshore wind performance.

    Soft U.S. market for new onshore wind equipmentQ1 FY26, ongoing

    soft

    Mitigation: Monitoring the outcome of 232 wind and solar tariffs, which could lead to more orders clarity in H2 FY26.

    Tariff impact on companyFY26

    $250M-$350M net impact

    Mitigation: Working mitigating plans through alternate sourcing and contractual provisions for pass-through.

    Middle East conflictsQ1 FY26, ongoing

    minimal impact to our business and financial performance to date

    Mitigation: Monitoring the situation closely and continuing operations where it is safe to do so.

    Q&A highlights

    6

    How does AI and automation affect Gas Power capacity targets, and what are the current lead times for new orders, especially considering the 24 GW target?

    Current lead time for Gas Power orders is about 3 years, with approximately 10 GW of capacity remaining for 2029 and 2030 combined. The company has added over 280 new machines and 1,800 production workers in Gas Power factories, expecting increased productivity from these investments. Gas turbines are often not the gating item for project completion, and lean initiatives will continue to add capacity efficiently.

    “We still have about 10 gigawatts remaining cumulatively in '29 and '30 together, whereas in the course of where we were in January earnings, we had 10 gigawatts in total for '29.”

    asked by Mark W. Strouse · answered by Scott Strazik

    2 min read6 chapters

    Detailed Narrative

    01

    Segment Realignment and Comparability

    GE Vernova realigned its reporting segments in Q1 FY26 to better reflect how the company is managed. In Power, the steam business was integrated primarily into nuclear. Electrification was realigned into four distinct business units: Power Transmission, Grid Systems Integration, Grid Automation and Software, with a portion of electrification software moved to Gas Power. In Wind, LM Wind was integrated into Onshore Wind. The company provided a financial supplement with restated 2025 segment results to ensure comparability, noting no changes to total company 2025 results.

    02

    AI Integration and Productivity Initiatives

    GE Vernova is actively integrating AI across its operations, with 13 AI-based process transformations underway and plans to double this in 2026. In Gas Power, AI tools are being developed to automate demand projection and resource allocation for customer fleets, aiming for better performance and higher scope per outage. In sourcing, AI is leveraged for parts rationalization, intelligent bidding, and automating manual processes like invoice matching, expected to save tens of millions annually and free up thousands of manual work hours.

    03

    Data Center Demand and Integrated Solutions Strategy

    Data center demand is a significant growth driver, with Q1 Electrification orders from data centers totaling $2.4 billion, exceeding full-year 2025 figures. The company is developing integrated solutions, exemplified by its first energy management system (EMS) order for a data center customer in Q1, which combines power conversion, grid automation, and substation electrical equipment. This integrated approach allows GE Vernova to provide comprehensive solutions spanning power generation, electrical equipment, and software.

    04

    Capital Allocation and Portfolio Simplification

    In Q1 FY26, GE Vernova invested approximately $700 million in R&D and CapEx combined, with R&D growing by roughly 25% to commercialize new technologies. The company also simplified its portfolio through business dispositions, generating approximately $900 million in pretax cash. This included the sale of its manufacturing software business for $600 million and additional stakes in China XD grid and a merchant transmission facility for $300 million.

    05

    Gas Power Capacity and Lead Times

    Gas Power currently has a directional lead time of about 3 years for orders, with approximately 10 gigawatts of capacity remaining for 2029 and 2030 combined. The company has installed over 280 new machines in its gas power factories and added about 1,800 production workers between 2025 and 2026, primarily in Gas Power. These investments aim to drive productivity and meet growing demand, with 20 gigawatts of annualized output expected by Q3.

    06

    Offshore Wind Project Execution

    The Wind segment successfully completed the installation of remaining wind turbines at Dogger Bank A and Vineyard Wind offshore projects in Q1, with commissioning activities now underway. Installation for Dogger Bank B has commenced strongly, and both Dogger Bank B and C are expected to be completed through the better part of 2027. This progress highlights execution discipline despite the soft U.S. market for new onshore equipment.

    AI-generated summary of the company’s earnings call. Not investment advice.