GEV · GE Vernova Inc.

GE Vernova's Q2 2026 results demonstrate robust momentum across its core segments. Total orders surged 88% organically to $24.2B, propelled by Power (+134% organic) and Electrification (+66% organic) as demand for gas turbines and grid equipment spiked. Revenue grew 22% GAAP (12% organic) to $11.1B, with Power up 14% and Electrification up 68% (29% organic), while Wind declined 10% due to soft onshore orders. Segment EBITDA margin improved notably: Power expanded 240 bps to 18.8% (320 bps organic), Electrification expanded 390 bps to 18.4% (700 bps organic), reflecting volume leverage, favorable pricing, and productivity gains, partially offset by inflation. Wind EBITDA losses widened to $(275)M as lower equipment volume and higher offshore project costs weighed. On a consolidated basis, adjusted EBITDA rose 62% to $1.25B, with margin up 280 bps to 11.3%, and adjusted organic EBITDA margin up 340 bps to 11.2%. Operating cash flow surged to $5.5B (vs. $367M a year ago) and free cash flow reached $5.1B, exceeding the full-year 2025 total of $1.2B, driven by strong working capital benefits. Management raised full-year 2026 guidance: revenue now $45.5-$46.5B (from $44.5-$45.5B) and free cash flow $11.5-$12.5B (from $6.5-$7.5B), while keeping adjusted EBITDA margin at 12%-14%. Power's organic revenue growth guidance was raised to 18%-20% and Electrification revenue to $14.5-$15.0B. The company also returned $3.9B to shareholders YTD via buybacks and dividends, ending the quarter with $13.1B cash. CEO Scott Strazik highlighted the $176B backlog and raised guidance, while CFO Ken Parks emphasized free cash flow strength. The results underscore GE Vernova's execution in capturing electrification and gas power demand, with margin expansion and cash generation supporting increased capital returns.