Key Highlights
- Shares of GEV declined 2.7% in premarket hours following Q2 adjusted earnings of $2.47, missing the $3.04 estimate
- Quarterly revenue reached $11.1 billion, climbing 22% from a year earlier and surpassing the $10.73 billion forecast
- Company elevated full-year 2026 revenue outlook to a range of $45.5ā$46.5 billion
- Annual free cash flow projection significantly increased to $11.5ā$12.5 billion from the previous $6.5ā$7.5 billion range
- Order intake jumped 88% organically to reach $24.2 billion, with Power and Electrification driving growth
On Wednesday, GE Vernova unveiled its Q2 2026 financial performance, delivering a mixed report that showcased revenue strength but fell short on profitability metrics. Investors reacted by pushing shares down 2.7% during premarket hours.
The company’s adjusted earnings per share registered at $2.47, significantly trailing the Street’s expectation of $3.04. However, quarterly revenue of $11.1 billion exceeded the anticipated $10.73 billion and represented a 22% year-over-year increase.
The impressive top-line performance was primarily fueled by the Power and Electrification divisions, which recorded 12% organic expansion. These two business units have remained central to GEV’s growth narrative throughout recent reporting periods.
Notwithstanding the bottom-line disappointment, the company’s leadership elevated its full-year 2026 revenue projection to $45.5ā$46.5 billion. This represents an upward revision from the previously communicated $44.5ā$45.5 billion band and positions the midpoint slightly above Wall Street’s $45.45 billion consensus estimate.
Cash Flow Outlook Sees Dramatic Increase
Perhaps the most significant development came on the liquidity front. GEV substantially raised its full-year free cash flow projection to $11.5ā$12.5 billion, a notable jump from the earlier $6.5ā$7.5 billion guidance range.
The second quarter alone produced $5.1 billion in free cash flow ā exceeding the company’s entire 2025 annual generation. Executives attributed this performance to enhanced working capital management and robust EBITDA growth.
The order book provided additional positive momentum. Total orders climbed 88% organically to $24.2 billion during the quarter, compared to $12.4 billion in the corresponding period of 2025. Within the Power division, the company secured 20 GW worth of new gas equipment agreements, expanding its backlog to 116 GW.
Chief Executive Scott Strazik indicated the company anticipates having a minimum of 125 GW of gas equipment under contract by the close of 2026, while maintaining its trajectory to achieve 20 GW in annual gas turbine production during Q3 2026, with plans to scale to 24 GW by 2028.
Wind Business Continues Underperformance
However, challenges persisted in certain areas. The Wind division remained problematic, recording a 10% revenue decline and posting an EBITDA loss of $275 million. Elevated Offshore Wind project expenses and reduced Onshore Wind equipment sales volume were primary contributors to the segment’s weakness.
In contrast, the Electrification segment demonstrated strong momentum. Core profitability surged to $671 million from $314 million in the prior-year period. Year-to-date data center orders surpassed $5 billion, representing more than twice the complete 2025 annual figure.
The Power segment delivered core profit of $1.03 billion, marking an approximately 31% year-over-year gain.
Management noted that worldwide tariff measures are projected to contribute $100ā$200 million in additional costs during 2026, even accounting for contractual safeguards and mitigation strategies.
The company reaffirmed its adjusted EBITDA margin guidance range of 12%ā14% for fiscal 2026.
Total backlog currently stands at $176 billion.
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