GE Vernova lifts guidance as orders & profit surge

GE Vernova reported first-quarter results showing sharply higher orders, revenue and profit, and raised its 2026 guidance.

Orders reached USD $18.3 billion in the quarter, up 71% organically, while revenue rose 16% to USD $9.3 billion. Net income was USD $4.7 billion, including a pre-tax gain of USD $4.5 billion, primarily attributable to the acquisition of the remaining stake in Prolec GE.

Backlog increased by USD $13.0 billion from the previous quarter to USD $163 billion, including Prolec GE. Cash from operating activities was USD $5.2 billion, and free cash flow was USD $4.8 billion, more than four times the level a year earlier.

Management raised its full-year outlook for revenue, adjusted EBITDA margin and free cash flow. GE Vernova now expects 2026 revenue of USD $44.5 billion to USD $45.5 billion, up from previous guidance of USD $44 billion to USD $45 billion. Free cash flow is now expected at USD $6.5 billion to USD $7.5 billion, compared with USD $5.0 billion to USD $5.5 billion previously.

GE Vernova Chief Executive Officer Scott Strazik pointed to continued demand in electricity markets and a rising backlog across the group's power and grid businesses.

"We had a solid start to 2026 as we continue to serve the growing, long-cycle electric power market. Demand is accelerating for our Power and Electrification solutions from a diverse set of customers, with our backlog growing by more than $13 billion quarter-over-quarter," Strazik said.

He added that the company now expects to reach at least 110 gigawatts of combined gas turbine backlog and slot reservation agreements by the end of the year. In the first quarter, gas power equipment backlog and slot reservation agreements increased from 83 GW to 100 GW.

"Reflecting this strength, we now expect to reach at least 110 GW of combined gas turbine backlog and slot reservation agreements by year-end 2026 and are raising our 2026 financial guidance. In the quarter, our Electrification segment booked $2.4 billion in equipment orders to support data centers, more than all of last year. We also completed our acquisition of the remaining fifty percent stake in Prolec GE, a leading grid equipment supplier, strengthening our ability to serve customers and accelerating our growth trajectory. Our team is executing well and remains focused on delivering for the long-term."

Power growth

The Power division remained the largest contributor to sales. Orders rose to USD $10.0 billion, up 59% organically, and revenue increased 12% to USD $5.0 billion, led by gas turbine equipment and nuclear services.

During the quarter, GE Vernova signed 21 GW of new gas equipment contracts, including 19 GW of slot reservation agreements and 2 GW of orders. It also converted 6 GW of existing slot reservations into orders and shipped 4 GW of equipment, lifting the equipment backlog from 40 GW to 44 GW and slot reservation agreements from 43 GW to 56 GW.

Power segment EBITDA margin rose 470 basis points to 16.3%, driven by pricing and volume in Gas Power, though inflation and additional investment spending partly offset the gain.

Grid demand

Electrification delivered the fastest growth. Orders increased 86% organically to USD $7.1 billion, and revenue climbed 61% to USD $3.0 billion, supported by demand for grid equipment in North America and Asia and the inclusion of Prolec GE.

The segment booked USD $2.4 billion in equipment orders tied to data centres in the quarter, exceeding the total for the whole of the previous year. Equipment backlog in Electrification reached USD $38.6 billion, up USD $16.6 billion from a year earlier, including USD $5 billion from Prolec GE.

The electrification segment EBITDA margin rose 670 basis points to 17.8%, helped by higher volume, productivity and pricing in power transmission and grid systems integration.

The Prolec GE transaction was a major feature of the quarter. GE Vernova completed the purchase of the remaining 50% stake in the transformer and grid equipment business for about USD $5.3 billion in cash, expanding its footprint in grid infrastructure as utilities and large power users invest in networks and equipment.

Wind losses

The Wind business remained a weak point. Orders rose 85% organically to USD $1.2 billion, but revenue fell 23% to USD $1.4 billion because of lower onshore wind equipment deliveries after weaker orders in the first half of 2025.

Segment EBITDA loss widened to USD $382 million from USD $146 million a year earlier, reflecting lower onshore equipment deliveries, the effect of tariffs and higher losses on offshore contracts.

During the quarter, GE Vernova completed the installation of offshore wind turbines at Dogger Bank A in the United Kingdom and Vineyard Wind in the United States.

GE Vernova ended the period with a cash balance of USD $10.2 billion. During the quarter, it repurchased about 1.8 million shares for USD $1.3 billion, paid a quarterly dividend of USD $0.50 per share, issued USD $2.6 billion of senior notes and spent USD $0.4 billion on capital expenditure.

Chief Financial Officer Ken Parks said the company's order book and cash position supported the revised forecast.

"We delivered significant growth and margin expansion in the first quarter as we executed our financial strategy. With robust equipment orders growth in each segment and continued services strength, our backlog grew to $163 billion, inclusive of Prolec GE," Parks said. "We maintained a strong investment grade balance sheet, growing our healthy cash balance to $10.2 billion with significant free cash flow generation and proceeds from dispositions, even as we closed the Prolec GE acquisition and returned capital to shareholders. Given our strong results and continued business momentum, we are increasing our guidance for 2026 revenue, adjusted EBITDA margin, and free cash flow."