Detailed Narrative
Gas Power Momentum and Backlog Growth
GE Vernova experienced significant momentum in its Gas Power segment, securing an incremental 6 gigawatts of new contracts in the last three weeks of December 2025, contributing to a total of 24 gigawatts in Q4 FY25. This strong demand, particularly in the U.S., Middle East, Vietnam, and Taiwan, increased Gas Power equipment backlog and slot reservations from 62 gigawatts to 83 gigawatts sequentially. The company anticipates reaching approximately 100 gigawatts under contract by the end of 2026, with a projected shift towards a larger proportion of firm orders.
Electrification's Record Performance and Prolec GE Acquisition
Electrification achieved its largest order quarter in history in Q4 FY25, with total backlog growing to $35 billion, up $4 billion sequentially and $11 billion year-over-year. Over $2 billion of Electrification's orders in FY25 were directly for data centers, more than tripling the 2024 total. The rapid approval and closing of the Prolec GE acquisition on February 2, 2026, is a strategic move expected to significantly boost Electrification's revenue to $13.5 billion-$14 billion in FY26, including approximately $3 billion from Prolec GE.
Offshore Wind Challenges and Mitigation
The U.S. government's halt on offshore wind activity on December 22, 2025, led to an incremental accrual for contract losses in Q4 FY25 related to the Vineyard Wind project. While a force majeure🌐 declaration protects against additional incremental costs, the delay could negatively impact 2026 Wind revenue by approximately $250 million if installation of the remaining 11 turbines cannot be completed by the end of March 2026 due to vessel access limitations. FY25 Wind losses totaled approximately $600 million, exceeding prior expectations due to this stop work order.
Overall Backlog and Margin Expansion
GE Vernova's total backlog expanded by $31 billion (25%) to $150 billion in FY25. Equipment backlog increased by $21 billion (50%) to $64 billion, and services backlog grew by $10 billion (13%) to $86 billion. The company successfully added $8 billion in equipment backlog margin dollars in FY25, surpassing the combined total of the prior two years, and expects to add at least as much in FY26, driven by higher-priced gas slot reservation agreements and strong demand in grid equipment.
Operational Investments and Lean Initiatives
The company invested over $2 billion in R&D and CapEx in FY25, including installing over 200 new machines and adding nearly 1,000 production workers to prepare for a substantial step-up in gas turbine output by Q3 FY26. Lean initiatives contributed to a 2-day reduction in days sales outstanding in FY25, generating over $200 million in additional free cash flow. Investments in automation, robotics, and AI are also advancing to drive long-term productivity and margin expansion.
Long-term Growth and Innovation Pipeline
GE Vernova is actively investing in future growth areas, including direct air capture, solid-state transformers, and fuel cell programs. The first solid-state transformer unit has been completed and is undergoing testing, with delivery to a hyperscaler customer expected in autumn 2026. Small Modular Reactors (SMRs) are progressing, with construction underway on the first plant in Ontario, positioning them to contribute meaningfully to the Power business's top line in the next decade.