GE Vernova (NYSE:GEV) raised its 2026 revenue and free cash flow outlook after reporting sharply higher second-quarter orders, expanded backlog and stronger margins, as management said demand for power generation and grid equipment continues to accelerate globally.
Chief Executive Officer Scott Strazik said the company is benefiting from what he described as the early stages of a multi-decade growth opportunity in the electric power industry. GE Vernova’s total backlog reached $176 billion at the end of the quarter, up $13 billion sequentially, with management saying it remains on track to reach $200 billion in 2027.
Orders Rise 88% as Backlog Expands
Chief Financial Officer Ken Parks said GE Vernova booked $24.2 billion of orders in the second quarter, an 88% year-over-year increase, with a book-to-bill ratio of slightly more than two times. Revenue rose 12%, including 14% growth in equipment revenue and 10% growth in services revenue.
Adjusted EBITDA increased 61% year-over-year to $1.2 billion, and adjusted EBITDA margin expanded 340 basis points. Parks attributed the margin improvement to more profitable volume, higher pricing and productivity gains that more than offset inflation.
Free cash flow was $5.1 billion in the quarter, up $4.9 billion from a year earlier. Parks said working capital provided a $6.4 billion cash benefit, mainly from higher down payments tied to increased orders and slot reservations in Power and higher orders in Electrification.
The company ended the quarter with approximately $13 billion in cash, up $3 billion from the end of the first quarter, after returning $2.5 billion to shareholders through dividends and share repurchases during the quarter. Under its $10 billion share repurchase program, GE Vernova has repurchased about $7 billion of stock, representing 12.4 million shares at an average price of $560 per share.
Power Segment Fueled by Gas Turbine Demand
In Power, orders more than doubled, driven by Gas Power equipment orders that increased approximately four times year-over-year. GE Vernova shipped three gigawatts of gas equipment during the quarter while signing 20 gigawatts of orders and slot reservation agreements in markets including the U.S., Brazil and Qatar.
Strazik said the company’s total gigawatts under contract increased sequentially from 100 to 116 gigawatts, including orders for 52 heavy-duty units and 61 aeroderivative units in the quarter. He said more than half of the gigawatts under contract are for GE Vernova’s HA turbines, which are expected to run at baseload and support services growth in the next decade.
Power revenue increased 14%, and segment EBITDA margin expanded 320 basis points to 18.8%. Parks said the improvement was mainly driven by favorable pricing and higher volume, partially offset by inflation and expenses tied to capacity and research and development investments.
For the third quarter, GE Vernova expects Power revenue growth of 17% to 19% and EBITDA margin of approximately 17% to 18%.
Electrification Backlog Grows on Grid and Data Center Demand
Electrification orders increased 66% year-over-year to approximately $6.3 billion, or about 1.7 times revenue, as demand grew for substations, switchgear and transformers. Parks said equipment orders growth was particularly strong in North America, rising approximately four times year-over-year.
Strazik said GE Vernova booked $2.7 billion of data center orders in Electrification during the second quarter, bringing first-half data center orders in the segment to more than $5 billion, more than double the full-year 2025 level. Electrification equipment backlog rose to $41 billion, up 69% from the second quarter of 2025.
Revenue in Electrification increased 68% on a reported basis, including the impact of Prolec, and 29% organically. Prolec contributed nearly $900 million of revenue in the quarter. Segment EBITDA more than doubled, with margin expanding 700 basis points to 18.4%.
For the third quarter, the company expects Electrification revenue of $3.8 billion to $4 billion and continued year-over-year EBITDA margin expansion, with margins modestly above second-quarter levels.
Wind Losses Continue, but Services Improve
GE Vernova’s Wind segment remained under pressure. Orders declined 40%, mainly due to lower onshore equipment orders in North America, partially offset by higher services orders. Revenue declined 11%, reflecting lower onshore equipment deliveries, partly offset by higher onshore services and offshore revenue tied to Dogger Bank B activity.
Wind reported EBITDA losses of $275 million in the quarter, which Parks said was in line with expectations. The loss widened year-over-year because of lower onshore equipment deliveries and higher offshore project costs, partially offset by improved onshore services.
For the third quarter, management expects Wind revenue to decline at a low double-digit rate year-over-year, while EBITDA is expected to be approximately break-even. For the full year, GE Vernova continues to expect Wind EBITDA losses of about $400 million.
2026 Guidance Raised on Strong First Half
GE Vernova raised its 2026 revenue outlook to $45.5 billion to $46.5 billion, up $1 billion from its previous forecast, citing additional growth in Electrification and Power. The company maintained its adjusted EBITDA margin guidance of 12% to 14%.
The company also increased its 2026 free cash flow guidance to $11.5 billion to $12.5 billion, up from a prior range of $6.5 billion to $7.5 billion. Parks said the higher forecast reflects stronger orders and down payments, along with higher adjusted EBITDA.
- Power organic revenue is now expected to grow 18% to 20% in 2026, with EBITDA margins of 17% to 19%.
- Electrification revenue guidance was raised by $500 million to $14.5 billion to $15 billion, with EBITDA margins still expected at 18% to 20%.
- Wind organic revenue is still expected to decline at a low double-digit rate.
During the question-and-answer session, Strazik said GE Vernova remains on track to increase Gas Power output from roughly three gigawatts per quarter to five gigawatts per quarter starting in the third quarter, reaching a 20-gigawatt annualized run rate. He said the company now sees an opportunity to reach 30 gigawatts of annual output in 2030 through lean initiatives, incremental machinery and use of existing factory space.
Strazik also said the company expects to end 2026 with at least 125 gigawatts under contract and that it is “mostly sold out” through 2030, with more than half of 2031 production slots expected to be contracted by year-end.
Management said GE Vernova continues to invest in capacity, research and development, robotics and automation. Strazik said the company completed the acquisition of Robotech Automation in early July, describing it as a small transaction that could help improve productivity across the business.
About GE Vernova (NYSE:GEV)
GE Vernova is the energy-focused company formed from the energy businesses of General Electric and operates as a publicly listed entity on the NYSE under the ticker GEV. It is organized to design, manufacture and service equipment and systems used across the power generation and energy transition value chain, bringing together legacy capabilities in conventional power, renewables and grid technologies under a single corporate platform.
The company’s offerings span large-scale power-generation equipment such as gas and steam turbines and associated generators and controls, as well as renewable energy technologies including onshore and offshore wind platforms and hydro solutions.
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