GE Vernova Inc.

GE Vernova reported 2Q 2026 orders of $24.2 billion, up 88% year over year, with book-to-bill slightly above 2x. Revenue increased 12%; adjusted EBITDA grew 61% year over year to $1.2 billion; and adjusted EBITDA margin expanded 340 basis points. Free cash flow was $5.1 billion in the quarter, up $4.9 billion year over year, and year-to-date free cash flow was approximately $10 billion. Backlog ended at $176 billion, with equipment backlog at $88 billion and services backlog at $88 billion. For full-year 2026, revenue guidance was raised to $45.5 billion-$46.5 billion from the prior view, free cash flow guidance was raised to $11.5 billion-$12.5 billion from $6.5 billion-$7.5 billion, and EBITDA margin guidance stayed at 12%-14%. Segment guidance called for Power organic revenue growth of 18%-20%, Electrification revenue of $14.5 billion-$15 billion, and Wind organic revenue down low double digits with about $400 million of EBITDA losses for the year.

Scott Strazik framed the quarter as evidence that GE Vernova is in the early stages of a multi-decade electricity investment cycle. He emphasized accelerating demand in gas power, electrification, data centers, grid stability, and nuclear, while highlighting customer pull, backlog conversion, and the company’s ability to expand capacity in a capital-efficient way. His tone was confident and constructive, repeatedly pointing to discipline, lean operations, and long-term optionality across the portfolio.

Ken Parks stressed that the quarter combined strong operating execution with balance-sheet strength. He cited the $24.2 billion of orders, $176 billion backlog, $1.2 billion of adjusted EBITDA, and $5.1 billion of free cash flow, along with a $6.4 billion working-capital cash benefit driven mainly by down payments and slot reservations. He also noted about $600 million of pre-tax proceeds from the China XD Grid disposition, a cash balance of about $13 billion, $2.5 billion returned to shareholders in the quarter, and roughly $7 billion repurchased under the $10 billion buyback program. He added that GE Vernova completed a voluntary roughly $500 million pension contribution and remains committed to an investment-grade balance sheet.

Analysts focused heavily on gas power capacity, asking whether the move from 20 gigawatts to 24 gigawatts and ultimately 30 gigawatts can be achieved within the current footprint. Management said the ramp is supported by existing factories, incremental machines, lean improvements, labor training, and supply-chain progress, and characterized the added CapEx as modest. Questions also probed whether 2026 is a peak-order year for gas turbines and what demand exists outside North America; management said it sees continued growth in contracted gigawatts into 2027, with healthy demand in Taiwan, Saudi Arabia, Mexico, Southeast Asia, and Qatar. On data centers and new products, management said about $5 billion of first-half Electrification orders came from data centers, and said SST and MV-UPS could materially expand the scope over time, with SST orders likely starting in 2027 or later.