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    GEV
    Earnings call· Jun 2026(Q2 FY26)

    GE Vernova Inc. GEV

    Jul 22, 2026 Source

    Executive summary

    GE Vernova Q2 FY26 — Strong Orders and Raised Guidance Driven by Electrification and Power

    GE Vernova delivered a robust Q2 FY26, marked by exceptional order growth in Power and Electrification, particularly from data center demand, which drove total backlog to $176 billion. The company significantly expanded adjusted EBITDA margins and generated strong free cash flow, leading to an upward revision of full-year revenue and FCF guidance. Management is focused on capital-efficient capacity expansion and strategic investments in new technologies like SSTs and MV-UPS to capitalize on the accelerating electricity investment supercycle, while navigating softness in the onshore wind market.

    Highlights

    5

    • Total orders increased 88% year-over-year to $24.2 billion, with equipment orders more than doubling and service orders growing 15%.

    • Total backlog expanded to $176 billion, up $13 billion sequentially, with improving margins.

    • Adjusted EBITDA grew 61% year-over-year to $1.2 billion, with margin expansion of 340 basis points.

    • Generated $5.1 billion of free cash flow in Q2, driving year-to-date FCF to approximately $10 billion, more than 2.5x FY25 results.

    • Raised full-year 2026 revenue guidance to $45.5 billion-$46.5 billion and free cash flow guidance to $11.5 billion-$12.5 billion.

    Concerns

    3

    • Wind orders declined 40% due to lower onshore equipment orders, primarily in North America.

    • Wind EBITDA losses were $275 million in Q2, in line with expectations, due to lower onshore equipment deliveries and higher offshore project costs.

    • U.S. market for new onshore wind equipment remains soft, with permitting delays and tariff uncertainty making an inflection point difficult to call.

    Guidance & targets

    33
    CategoryTargetConfidence
    Total Backlog
    $200 billion
    high materiality
    High
    Gigawatts under contract (Gas Power)
    at least 125 GW
    high materiality
    High
    Gigawatts under contract (Gas Power)
    continue to grow
    medium materiality
    Low
    Gas equipment orders price per KW
    higher end of the range of 10 to 20 points versus 4Q '25 orders
    medium materiality
    Medium
    Gas Power annual output capacity
    30 gigawatts
    high materiality
    High
    Air-insulated switch gears output growth
    accelerate
    medium materiality
    Medium
    HA fleet size
    double
    medium materiality
    High
    Wind Revenue and EBITDA
    improvement
    medium materiality
    Medium
    Full-year 2026 Revenue
    $45.5 billion to $46.5 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA Margin
    12% to 14%
    high materiality
    High
    Full-year 2026 Free Cash Flow
    $11.5 billion to $12.5 billion
    high materiality
    High
    FY26 Adjusted EBITDA and Revenue seasonality
    more second half weighted... highest revenue and EBITDA in 4Q '26
    medium materiality
    Medium
    Full-year 2026 Corporate Costs
    $450 million and $500 million
    low materiality
    High
    FY26 Free Cash Flow seasonality
    first half... substantially higher than the second half
    medium materiality
    Medium
    Q3 FY26 Revenue and Adjusted EBITDA Margin
    continued year-over-year revenue growth and adjusted EBITDA margin expansion
    medium materiality
    Medium
    Q3 FY26 Free Cash Flow
    positive
    medium materiality
    Medium
    Q3 FY26 Power Gas Equipment Orders
    continued strong
    medium materiality
    Medium
    Q3 FY26 Power Revenue Growth
    17% to 19%
    medium materiality
    High
    Q3 FY26 Power EBITDA Margin
    approximately 17% to 18%
    medium materiality
    High
    Q3 FY26 Electrification Equipment Orders
    continued solid... with healthy margins
    medium materiality
    Medium
    Q3 FY26 Electrification Revenue
    $3.8 billion and $4 billion
    medium materiality
    High
    Q3 FY26 Electrification EBITDA Margin
    strong year-over-year EBITDA margin expansion... expanding modestly above 2Q 2026 levels
    medium materiality
    Medium
    Q3 FY26 Wind Revenue Growth
    decline at a low double-digit rate
    medium materiality
    Medium
    Q3 FY26 Wind EBITDA
    approximately breakeven
    medium materiality
    Medium
    Full-year 2026 Power Organic Revenue Growth
    18% to 20%
    high materiality
    High
    Full-year 2026 Power EBITDA Margin
    17% to 19%
    high materiality
    High
    Full-year 2026 Electrification Revenue
    $14.5 billion to $15 billion
    high materiality
    High
    Full-year 2026 Electrification EBITDA Margin
    18% to 20%
    high materiality
    High
    Full-year 2026 Wind Organic Revenue Growth
    down low double digits
    high materiality
    Medium
    Full-year 2026 Wind EBITDA Losses
    approximately $400 million
    high materiality
    High
    Gas Power annual output capacity
    24 gigawatts
    high materiality
    High
    Gas Power production slots sold
    mostly sold out through '30
    high materiality
    High
    Gas Power production slots sold
    more than half of the 30 gigawatts of '31 production slots
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Power
    Robust demand, strong revenue growth, and solid EBITDA margin expansion. Gas power equipment growth driven by higher turbine volume and favorable price. Services revenue increased due to growth at nuclear and gas power.
    Orders: more than doubledGas power equipment orders: increased by approximately 4x YoYPower Services orders: increased 12%Gas turbines shipped: 29 unitsAeroderivatives shipped: 16 unitsEBITDA margin expansion: 320 bps
    		increased 14%14%—18.8%
    Electrification
    Significant orders and revenue growth, with strong EBITDA margin expansion. Growth driven by grid equipment demand, partially from data centers. Strong equipment orders in North America, making it the largest portion of equipment backlog.
    Orders: $6.3 billionOrders growth YoY: 66%Equipment orders growth North America: up approximately 4x YoYEquipment backlog: $41 billionEquipment backlog growth YoY: 69% or $17 billionProlec revenue: nearly $900 millionProlec-enabled US transformer orders (H1 FY26): $800 millionEBITDA more than doubled YoYEBITDA margin expansion: 700 bps
    		increased 68% on a reported basis, inclusive of Prolec, and 29% organically68% (reported), 29% (organic)—18.4%
    Wind
    Continued focus on improving onshore wind services. Orders declined mainly due to lower onshore equipment orders in North America. Revenue decreased due to lower onshore equipment deliveries, partially offset by higher onshore services and offshore revenues. EBITDA losses in line with expectations due to lower equipment deliveries and higher offshore project costs.
    Orders declined: 40%Onshore equipment orders: lowerOnshore services: higherOffshore revenues: higher (Dogger Bank B)EBITDA losses: $275 million
    		decreased 11%-11%—-$275 million

    Operational metrics

    19
    Adjusted EBITDA
    $1.2 billionup 61% YoY
    Q2 FY26

    Led by Power and Electrification, driven by more profitable volume, higher price, and productivity.

    Working Capital
    $6.4 billioncash benefit
    Q2 FY26

    Significant cash benefit.

    Cash Balance
    $13 billionup $3 billion from end of Q1
    Q2 FY26

    Healthy cash balance after returning capital to shareholders.

    Share Repurchases
    $7 billion
    YTD FY26

    Part of the $10 billion share repurchase program.

    Capital Returned to Shareholders
    $4 billionmore than full year FY25
    YTD FY26

    Executing capital allocation strategy with discipline.

    R&D and CapEx combined
    $1.4 billion
    YTD FY26

    Investing in innovation and growth.

    R&D and CapEx combined (FY26 guidance)
    approximately 30%YoY increase
    FY26

    To support innovation and growth.

    Restructuring Savings
    $250 million
    Annual

    Substantially completed previously announced actions.

    G&A Cost Reduction Target
    $600 million
    FY28

    On track to achieve this target.

    Gas Power HA operating hours
    4 millionup 1 million hours in just over a year
    Q2 FY26

    Significant milestone since launch.

    Gas Power HA units on contract
    325
    Q2 FY26

    Compared to 130 running today.

    Air-insulated switch gears shipped
    9,000 units
    FY25

    Last year's shipments.

    Air-insulated switch gears planned shipments
    approximately 10,500 units
    FY26

    Plan for this year.

    Gas Power factory machines installed
    325 machines
    Q2 FY26

    In gas factories.

    Gas Power factory machines installed (target)
    approximately 400 new machines
    FY26

    Expected by end of year.

    Onshore Wind repowering potential
    approximately 10 gigawatts
    current

    Units in U.S. installed base with repowering potential, qualified for new production tax credits.

    Sourcing Savings
    20%
    future periods

    Negotiated savings that will flow through in future periods.

    Pension Plan Voluntary Contribution
    approximately $500 million
    Q2 FY26

    To largest pension plan to reduce future funding requirements and annual plan premiums.

    Prolec Revenue
    nearly $900 million
    Q2 FY26

    Solid performance from the acquired entity.

    Industry KPIs

    5
    MetricValueDetails
    Book to bill ratioslightly more than 2xx
    Orders bookings growth88%%
    Gigawatts under contract116 gigawattsGW
    Backlog by segment end market$176 billionUSD
    Data center exposure pipeline$5 billionUSD

    Orderbook & backlog

    8
    Total Backlog$176 billionQ2 FY26

    up $13 billion from last quarter

    on track to reach $200 billion in '27

    Equipment Backlog$88 billionQ2 FY26

    up approximately $12 billion sequentially and 77% YoY

    driven by both Power and Electrification, which incorporates Prolec's backlog. The equipment backlog margins remain healthy, reflecting favorable price and our continued focus on disciplined underwriting.

    Services Backlog$88 billionQ2 FY26

    up approximately $10 billion or 12% YoY

    led by Power

    Gas Power Gigawatts under contract116 gigawattsQ2 FY26

    from 100 to 116 gigawatts sequentially

    expected to reach at least 125 gigawatts under contract by the end of the year.

    Gas Power Backlog (GW)53 gigawattsQ2 FY26

    grew from 44 to 53 gigawatts

    expected to achieve an important inflection point with gigawatts in backlog greater than SRAs in H2 FY26

    Gas Power Slot Reservation Agreements (SRAs)63 gigawattsQ2 FY26

    increased from 56 to 63 gigawatts

    expect to convert many of these SRAs into orders in H2 FY26

    Electrification Equipment Backlog$41 billionQ2 FY26

    up 69% or roughly $17 billion compared to Q2 FY25

    driven by growing grid equipment demand partially to support data center development. North America is now the largest portion.

    Gas Power HA turbines under contract325 unitsQ2 FY26

    HA fleet size expected to double in the years to come based on units under contract today.

    Product announcements

    4
    ProductTypeDetails
    5-megawatt SST prototype (indoor application)milestone
    6-megawatt SST (outdoor application)milestone
    Medium Voltage Uninterruptible Power Supply (MV-UPS) blocksmilestone
    Solid Oxide Fuel Cellsmilestone

    Deals & partnerships

    2
    Robotech AutomationAcquisition of a specialized team of engineers to accelerate deployment of robotics and automation across GEV.

    Completed in early July.

    China XD Grid businessDisposition of remaining ownership stake.$600 million

    Completed in Q2.

    Capital programs

    2
    Gas Power annual output capacity expansionunderway
    Funding: customer down payments

    Benefit: 30 gigawatts of annual output

    we now see further opportunity to serve this growing demand with 30 gigawatts of annual output in '30 in a capital-efficient manner, utilizing lean and incremental machinery in our existing factory footprint and have already secured significant supply chain capacity, all funded by customer down payments.

    Electrification output increase (Air-insulated switch gears)underway

    Benefit: approximately 10,500 units this year (from 9,000 last year), growth to accelerate in '27

    We shipped approximately 9,000 units last year, plan to do approximately 10,500 this year, and expect growth to accelerate in '27 from our existing factories, including our Pennsylvania facility. We've done this utilizing lean, adding shifts and incorporating more automation and robotics into the factory.

    Risks & headwinds

    4
    Softness in U.S. onshore wind marketQ2 FY26, ongoing

    Wind orders declined 40%, Wind revenue decreased 11%, Wind EBITDA losses were $275 million

    Mitigation: focused on the factors within our control, drive a more profitable service business, monitoring the outcome of 232 tariffs

    Permitting delays and tariff uncertainty in U.S. wind developmentongoing

    difficult to call an inflection point in U.S. orders

    Mitigation: monitoring the outcome of 232 tariffs that impact wind development, which could lead to more orders clarity in the second half of the year.

    Higher project costs at offshore windQ2 FY26

    Contributed to $275 million Wind EBITDA losses

    Mitigation: lower project costs for offshore expected in Q3 FY26

    Tariffs on wind equipmentH1 FY26 (impacted shipments)

    fewer contractual protections for tariffs since we signed these orders before their implementation

    Mitigation: monitoring the outcome of 232 tariffs

    What to watch in Q3 FY26

    5

    Gas Power annual output from Greenville

    Q3 FY26
    Current3 gigawatts of output a quarter
    Target5 gigawatts of output a quarter

    Why it matters

    Verifies the ramp-up of critical gas turbine production capacity to meet demand.

    We will make the jump from where we've been, which has been about 3 gigawatts of output a quarter to 5 gigawatts of output a quarter starting in the third quarter. That's very well on track.

    Q&A highlights

    5

    Clarification on whether the 30 GW target involves major capacity adds or capital-light investments, and an update on the Greenville facility's 3Q ramp.

    Scott Strazik confirmed the jump to 5 GW/quarter (20 GW annualized) from Greenville in Q3 is on track. The 30 GW target by 2030 will be achieved through capital-efficient investments, leveraging lean manufacturing, automation (Robotech acquisition), and incremental machinery within existing factory footprints. He also noted that some of this capacity will be needed for future HA turbine service outages in the next decade.

    “We will make the jump from where we've been, which has been about 3 gigawatts of output a quarter to 5 gigawatts of output a quarter starting in the third quarter. That's very well on track.”

    asked by Nicole DeBlase · answered by Scott Strazik

    2 min read6 chapters

    Detailed Narrative

    01

    Demand Environment & Backlog Strength

    GE Vernova is experiencing accelerating demand across its Power and Electrification segments, driven by the long-cycle electric power industry's multi-decade growth opportunity. Total backlog reached $176 billion, up $13 billion sequentially, with improving margins, and is on track to hit $200 billion by 2027. This robust demand is fueled by economic growth, grid modernization, electrification, and data center expansion.

    02

    Gas Power Momentum

    The Gas Power segment saw equipment orders more than quadruple and signed 20 gigawatts of orders and slot reservation agreements (SRAs) in Q2, increasing total gigawatts under contract to 116 GW. The company expects to reach at least 125 GW under contract by year-end and anticipates converting many SRAs into firm orders in H2, leading to an inflection point where gigawatts in backlog exceed SRAs. Pricing remains strong, with H1 FY26 equipment orders priced over 20% above Q4 FY25.

    03

    Electrification Growth & Data Centers

    Electrification continues to see robust demand, with equipment backlog rising above $40 billion. Data center orders were particularly strong, reaching $2.7 billion in Q2 and over $5 billion in H1 FY26, more than double the full-year 2025 total. The integration of Prolec GE is performing well, enabling the company to book $800 million in U.S. transformer orders in H1, fulfilled globally.

    04

    Capacity Expansion & Productivity

    To meet accelerating demand, GE Vernova is expanding production capacity in Power and Electrification through lean and capital-efficient investments. Gas Power is on track for 20 GW annualized output in Q3 and aims for 30 GW by 2030, funded by customer down payments. Electrification is increasing output for products like air-insulated switch gears, leveraging lean manufacturing, additional shifts, and automation.

    05

    Strategic Investments & Innovation

    The company is investing in long-term growth initiatives, including advancing Small Modular Reactors (SMRs) with two new tech selects in Q2. In Electrification, progress is being made on solid-state transformers (SSTs), with a 5-megawatt prototype for indoor applications to be delivered to a hyperscaler later this year, and development of a 6-megawatt outdoor SST underway. They are also developing medium voltage uninterruptible power supply (MV-UPS) blocks for data centers.

    06

    Wind Segment Challenges & Focus

    The Wind segment continues to face challenges, with orders declining 40% due to softness in the U.S. onshore market, impacted by permitting delays and tariff uncertainty🌐. Despite this, the team is focused on improving onshore service profitability and managing offshore project costs, with expectations for improvement in revenue and EBITDA in H2 FY26.

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