GE Vernova (NYSE:GEV) executives told investors the company opened fiscal 2026 with sharply higher orders, rising backlog, expanding margins, and significant free cash flow, as demand for power generation and grid infrastructure continues to accelerate globally.
Backlog growth accelerates as demand strengthens
CEO Scott Strazik said GE Vernova’s structural demand drivers are “continu[ing] to strengthen” as global electrification accelerates. He highlighted backlog expansion since the company’s spin, saying GE Vernova launched with a $116 billion backlog and has since grown that figure to $163 billion, including what he described as “an 80% increase in our equipment backlog at considerably better margins.”
CFO Ken Parks reported first-quarter orders of $18.3 billion, up 71% year-over-year, with a book-to-bill ratio of about 2. Equipment orders “more than doubled,” while services orders increased 25%, he said. Total backlog rose to $163 billion, including equipment backlog of $76 billion (up about $12 billion sequentially and 67% year-over-year) and services backlog of $87 billion (up $9 billion, or 12% year-over-year).
First-quarter financial results: higher revenue, margin expansion, and $4.8B free cash flow
Management said revenue increased 7% year-over-year, with equipment revenue up 10% and services revenue up 4%. Parks attributed the equipment growth to Electrification (up 39%) and Power (up 25%), which more than offset “anticipated lower wind revenues.”
Adjusted EBITDA rose 87% year-over-year to $896 million, while adjusted EBITDA margin expanded 390 basis points. Parks cited higher price, more profitable volume, and productivity, which he said more than offset inflation, “including the impact of tariffs.”
Free cash flow totaled $4.8 billion in the quarter, which Strazik noted exceeded the company’s full-year 2025 free cash flow of $3.7 billion. Parks said working capital was a $5.3 billion cash benefit, “driven primarily by higher down payments on increased orders and slot reservations at Power, as well as higher orders at electrification.”
Power: strong gas demand, higher pricing, and capacity ramp
Strazik said Power delivered strong results and margin expansion in the first quarter “even with the continuing investments in capacity expansion and SMR.” He emphasized global demand in Gas Power, noting 21 GW of new gas turbine agreements signed in the quarter across countries including the U.S., Vietnam, Mexico, Brazil, and Canada. He said total gigawatts under contract increased sequentially from 83 GW to 100 GW; backlog grew from 40 GW to 44 GW; and slot reservation agreements rose from 43 GW to 56 GW.
Strazik said about 80% of total gigawatts under contract are with traditional customers, while 20% “explicitly support data centers.” He added that, in April, orders momentum continued; Parks later clarified that “in April, we have booked power equipment orders of value equivalent to what we booked in the full first quarter.”
On pricing, Strazik said the company expects first-half 2026 orders to be priced “10-20 points higher” than fourth-quarter 2025 orders on a $/kW basis. In Q&A, he said bidding and winning activity through the first four months of the year remained in that “10-20 point growth” versus the fourth-quarter backlog pricing. Parks added a data point for analysts modeling the Power orders: “This quarter… it’s $200 million to back out” for hydro and nuclear items from total Power orders, compared with about $500 million last quarter.
Parks said Power segment orders rose 59% in the quarter, driven by Gas Power equipment more than doubling year-over-year on higher pricing and HA units ordered, while Power services orders rose 29% led by Nuclear upgrades and continued Gas Power growth. Power revenue increased 10%, and the segment shipped 25 gas turbines, up 32% year-over-year. Power EBITDA margin expanded 500 basis points to 16.3%.
On manufacturing capacity, Strazik said GE Vernova has installed more than 280 new machines in its Gas Power factories and remains on track to reach 20 GW of annualized output by the third quarter. In Q&A, he described lead times as “directionally at about three years” and said the company still has capacity in 2029 and 2030. He added that GE Vernova sold more 2030 slots in the first quarter as customers’ EPC schedules favored that timing, leaving “about 10 GW remaining cumulatively in 2029 and 2030 together.”
Strazik also said the company continues to expect to take orders for 2031 and beyond, and discussed supply-chain investments. Parks noted GE Vernova still plans to step up from about 20 GW of capacity mid-2026 toward 24 GW in 2028, with some gains expected from lean initiatives.
Electrification: data center-driven orders, Prolec contribution, and margin gains
Strazik called Electrification the segment most benefiting from GE Vernova operating as “one focused and integrated company.” He said Electrification backlog has grown from $9 billion at year-end 2022 to $42 billion, and highlighted that data centers accounted for about $2.4 billion of Electrification orders in the first quarter—more than the full year of 2025.
Parks reported Electrification orders of about $7.1 billion, up 86% year-over-year, at roughly 2.5x revenue. He said the company saw significant growth in substations, HVDC, switchgear, and transformers, with equipment orders in North America and Asia “both roughly tripling year-over-year.” Electrification revenue increased 29% organically, and 61% on a GAAP basis inclusive of Prolec.
Prolec, acquired in early February, contributed nearly $500 million of revenue at “just over 20% EBITDA margin” since closing, Parks said. Strazik said the first two months of running Prolec reinforced “the substantial opportunity ahead,” while noting lean initiatives are already being applied post-acquisition.
Electrification segment EBITDA more than doubled and margin expanded 590 basis points to 17.8%, which Parks said was driven by volume, productivity, and favorable pricing.
In Q&A, Strazik said the company is gaining momentum by integrating products across generation, substation equipment, and solutions such as an energy management system (EMS). He said an EMS order was booked in the first quarter and a second was secured in April, and described a broader “string of pearls” strategy to increase scope per gigawatt in data center projects. He also said GE Vernova expects to deliver the first solid-state transformer product to a hyperscaler in the fall of this year, followed by six months of testing before a potential order in the first half of 2027.
On tariffs, Parks reiterated prior commentary that net tariff impact was about $250 million in 2025 and is expected to be $250 million to $350 million in 2026. He said the “structure of those tariffs have moved around,” and that Prolec has “a little bit more impact” under how Section 232 tariffs have been defined, but management said the guidance already reflects the expected tariff impact and mitigation actions are underway.
Wind: offshore installations completed; losses continue amid onshore softness and tariffs
Management said the Wind segment remains focused on controllable factors. Strazik said GE Vernova completed installation of the remaining turbines at Dogger Bank A and Vineyard Wind in the first quarter and has moved to commissioning activities. He said installation is off to “a very strong start” at Dogger Bank B and the company expects Dogger Bank B and C to carry work through “the better part of 2027.”
Parks said Wind orders increased 85% primarily due to improved onshore equipment orders in North America off a low comparison, but said it remains “difficult to call an inflection point” given permitting delays and tariff uncertainty. Wind revenue declined 25% year-over-year, and Wind EBITDA losses were $382 million, which Parks said was in line with expectations. He attributed the year-over-year increase in losses to lower onshore equipment deliveries, tariffs in Onshore Wind, and higher contract losses in Offshore Wind, partially offset by improved Onshore services.
Guidance raised for 2026; continued investment and capital returns
Based on the first-quarter performance, GE Vernova raised its full-year 2026 outlook. Parks said revenue is now expected to be $44.5 billion to $45.5 billion (up $500 million), driven by Electrification. Adjusted EBITDA margin guidance was raised by 1 percentage point at both ends to 12% to 14%, and free cash flow guidance was increased to $6.5 billion to $7.5 billion from $5.0 billion to $5.5 billion.
By segment, management updated its expectations as follows:
- Power: 16% to 18% organic revenue growth; EBITDA margin now expected at 17% to 19% (previously 16% to 18%).
- Electrification: revenue expected at $14.0 billion to $14.5 billion (previously $13.5 billion to $14.0 billion); EBITDA margin expected at 18% to 20% (previously 17% to 19%); Prolec expected to contribute about $3 billion of revenue in 2026.
- Wind: organic revenue expected to be down low double digits; EBIT losses still expected to be about $400 million for 2026.
Strazik said the company invested about $700 million in combined R&D and capex in the quarter, with R&D up about 25%. He also cited portfolio simplification actions generating about $900 million of pre-tax cash and said GE Vernova returned about $1.4 billion to shareholders, including $1.3 billion in share repurchases and the dividend.
Parks said the company ended the quarter with about $10.2 billion of cash, issued $2.6 billion of debt during the quarter, and remained below 1x gross debt to adjusted EBITDA. He said GE Vernova is committed to maintaining an investment-grade balance sheet.
Management also addressed geopolitical developments, with Strazik saying the company is monitoring the Middle East conflict and has seen “minimal impact” to business and financial performance to date while prioritizing employee and partner safety.
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.
