GE Vernova Inc.
GEV · NYSE
Next quarter
Expected to report Oct 21, 2026 — estimated from last year’s reporting date.
Consensus is $4.09 EPS for Sep 2026 across 8 estimates, ranging $3.28 to $4.63.
GEV Jun 2026
- 22.08%
- +4.69%
- $3.17
- $2.47
- —
- $11.10B
Reported results
- $11.10B
- 21.25%
- $653.00M
- 5.88%
- $668.00M
- $2.47
Highlights
- Revenue and EPS: Second-quarter revenue rose 22% year over year to $11.1 billion, while diluted EPS increased 33% to $2.47 but missed consensus of $3.17 by 22.1%.
- Orders and backlog: Orders increased 88% organically to $24.2 billion, lifting backlog by $13.0 billion sequentially to $176.3 billion, up 37% from a year ago.
- Margin expansion: Adjusted EBITDA increased 62% to $1.25 billion, and adjusted EBITDA margin expanded 280 basis points year over year to 11.3%; adjusted organic margin rose 340 basis points to 11.2%.
- 2026 guidance: GE Vernova raised revenue guidance to $45.5-$46.5 billion from $44.5-$45.5 billion and free cash flow guidance to $11.5-$12.5 billion from $6.5-$7.5 billion; adjusted EBITDA margin guidance remains 12%-14%.
- Power demand: Power orders increased 134% organically to $16.7 billion, including 20 GW of new gas equipment contracts; gas equipment backlog and slot reservations rose to 116 GW, with at least 125 GW expected by year-end.
- Electrification growth: Electrification revenue increased 68% to $3.6 billion, or 29% organically, while EBITDA margin rose 390 basis points to 18.4%; equipment backlog reached $40.6 billion, up 69% year over year.
- Cash generation: Second-quarter operating cash flow was $5.5 billion and free cash flow was $5.1 billion, taking first-half free cash flow to $9.9 billion, already above the full-year 2025 total.
- Wind weakness: Wind revenue declined 10% to $2.0 billion and segment EBITDA losses widened to $275 million from $165 million, driven by lower Onshore Wind volume and higher Offshore Wind project costs.
- Capital allocation: Cash ended the quarter at $13.1 billion after $2.3 billion of share repurchases and a $0.50 per-share dividend in the quarter; year-to-date capital returned reached $3.9 billion.
Analysis
GE Vernova’s second quarter combined a strong operating print with a material EPS miss. Revenue of $11.1 billion rose 22% from $9.1 billion a year ago and increased 19% from $9.34 billion in the first quarter. Diluted EPS was $2.47, up from $1.86 a year ago but below the $3.17 consensus estimate. Net income attributable to GE Vernova was $668 million, versus $514 million a year ago; the prior quarter’s $4.75 billion net income benefited from a large Prolec GE-related gain and is therefore not comparable on an operating basis.
The defining features were demand, execution and cash conversion. Organic orders jumped 88%, backlog increased $13.0 billion sequentially to $176.3 billion, and adjusted EBITDA margin expanded to 11.3% from 8.5% a year ago. Power and Electrification drove the improvement, with organic EBITDA margins up 320 and 700 basis points, respectively, while Wind deteriorated sharply. Free cash flow reached $5.1 billion in the quarter and $9.9 billion through June, helped substantially by customer down payments and a $13.7 billion first-half increase in contract liabilities. Management raised full-year revenue and free cash flow guidance, but left margin guidance unchanged, reflecting continued execution risk in Wind and the integration of Prolec GE.
Demand, backlog and guidance
- Order momentum: Company orders rose 88% organically to $24.2 billion, led by Power and Electrification. Backlog increased $13.0 billion sequentially and reached $176.3 billion, up from $128.7 billion a year ago and $150.2 billion at December 31, 2025.
- Gas capacity: Power signed 20 GW of new gas equipment contracts, including 18 GW of slot reservations and 2 GW of orders. Gas equipment backlog increased from 44 GW to 53 GW, while slot reservations rose from 56 GW to 63 GW. The combined total reached 116 GW, and management expects at least 125 GW by year-end 2026.
- Raised outlook: Full-year revenue guidance increased to $45.5-$46.5 billion from $44.5-$45.5 billion, while free cash flow guidance rose to $11.5-$12.5 billion from $6.5-$7.5 billion. Adjusted EBITDA margin guidance stayed at 12%-14%. Power organic revenue growth guidance increased to 18%-20% from 16%-18%, and Electrification revenue guidance increased to $14.5-$15.0 billion.
Margins and earnings
- Operating improvement: Operating income increased to $653 million from $378 million a year ago, driven by a $0.4 billion improvement in Electrification and a $0.2 billion improvement in Power, partly offset by a $0.1 billion decline in Wind and $0.2 billion of higher depreciation and amortization.
- Underlying profitability: Adjusted EBITDA rose to $1.25 billion from $770 million, lifting margin to 11.3% from 8.5%. Adjusted organic EBITDA increased to $1.14 billion from $708 million, with organic margin expanding to 11.2% from 7.8%.
- GAAP earnings: Net income was $649 million, or 5.8% of revenue, compared with $492 million and 5.4% a year ago. EPS benefited from a lower diluted share count of 270 million versus 276 million, but still came in 22.1% below the $3.17 consensus estimate.
Power and Electrification
- Power: Revenue increased 14% to $5.5 billion, while segment EBITDA rose 31% to $1.03 billion. Margin expanded to 18.8% from 16.4%, primarily from higher Gas Power volume and pricing, with services growth at Gas Power and Nuclear Power.
- Gas turbine execution: GE Vernova booked 113 gas turbines, including 52 heavy-duty units, 15 HA turbines and 61 aeroderivative turbines. It shipped 3 GW of equipment during the quarter and remains on track for 20 GW of annual gas turbine output in the third quarter of 2026, with targets of 24 GW in 2028 and 30 GW in 2030.
- Electrification: Revenue rose 68% to $3.6 billion, including Prolec GE, and 29% organically. Orders increased 66% organically, producing a book-to-bill ratio of approximately 1.7. Segment EBITDA increased to $671 million from $314 million, and margin expanded to 18.4% from 14.5%.
- Prolec GE: The acquisition contributed $859 million of second-quarter revenue but a $57 million pretax loss, including inventory step-up amortization, intangible amortization and integration costs. Electrification equipment backlog reached $40.6 billion, up $16.6 billion year over year, including $5 billion from Prolec GE.
Wind pressure
Wind remained the principal drag on the quarter. Orders declined 40% organically to $1.2 billion, primarily because of weaker Onshore Wind equipment orders in North America. Revenue fell 10% to $2.0 billion, or 11% organically, as lower Onshore Wind deliveries outweighed higher Offshore Wind deliveries and installations. Segment EBITDA losses widened to $275 million from $165 million, reducing margin to negative 13.6% from negative 7.3%. Management attributed the deterioration to lower Onshore Wind equipment volume and higher Offshore Wind project costs. Full-year guidance calls for Wind organic revenue to decline by low double digits and approximately $400 million of segment EBITDA losses.
Cash and capital allocation
- Cash generation: Operating cash flow was $5.5 billion and free cash flow was $5.1 billion in the quarter, compared with $367 million and $194 million, respectively, a year ago. First-half operating cash flow reached $10.7 billion and free cash flow $9.9 billion, versus $1.5 billion and $1.2 billion in the prior-year period.
- Working capital: First-half operating cash flow included an $11.7 billion working-capital inflow, including a $13.7 billion increase in contract liabilities and deferred income from customer down payments on Power orders and slot reservations and Electrification orders. Inventory was a $1.7 billion use of cash as the company built for future deliveries.
- Balance sheet and returns: Cash, cash equivalents and restricted cash rose to $13.1 billion from $8.8 billion at year-end. GE Vernova repurchased 2.5 million shares for $2.3 billion in the quarter and 4.3 million shares for $3.6 billion year to date, alongside a $0.50 per-share dividend. It also contributed approximately $0.5 billion to the GE Energy Pension Plan.
