GE Vernova’s backlog reached $176 billion during the second quarter of 2026 as demand for gas turbines, grid equipment, data center infrastructure, and long-term services continued to increase.
The energy technology company added $13 billion to its backlog sequentially through new equipment and service commitments. Quarterly orders reached $24.2 billion, representing organic growth of 88%, led by the Power and Electrification segments.
GE Vernova’s backlog represents remaining contractual performance obligations that are expected to generate future revenue as equipment is manufactured, projects are completed and services are delivered.
The expanding backlog gives the company greater visibility into future sales, particularly in its Gas Power and Electrification businesses, where customers are reserving manufacturing capacity several years in advance.
Gas Power’s equipment backlog and slot reservation agreements increased from a combined 100 gigawatts to 116 gigawatts during the quarter. GE Vernova now expects to have at least 125 gigawatts of gas equipment under contract by the end of 2026.
The company signed contracts covering 20 gigawatts of new gas equipment during the quarter. This included 18 gigawatts of slot reservation agreements and two gigawatts of firm orders.
GE Vernova also converted 10 gigawatts of previously signed reservation agreements into firm orders and shipped three gigawatts of equipment. These activities increased the Gas Power equipment backlog from 44 gigawatts to 53 gigawatts, while slot reservations grew from 56 gigawatts to 63 gigawatts.
A slot reservation agreement allows a customer to secure a position in GE Vernova’s manufacturing schedule before all the terms of a final equipment order are completed. The arrangement can be particularly important when turbine production capacity is limited and project developers need certainty about equipment availability.
To meet the increasing demand, GE Vernova remains on track to reach annual gas turbine output of 20 gigawatts during the third quarter of 2026. The company is targeting 24 gigawatts of annual output in 2028 and is implementing plans to produce 30 gigawatts annually by 2030.
The Electrification segment is also building a substantial order pipeline as utilities, data center developers and other customers invest in transmission and grid equipment.
Electrification’s equipment backlog reached $40.6 billion, representing an increase of $16.6 billion, or 69%, from the prior-year period. The total included approximately $5 billion associated with Prolec GE.
Data center orders exceeded $5 billion during the first half of 2026, more than double the company’s total for all of 2025. This demand includes grid and power equipment needed to connect and support the large electricity loads associated with AI computing and cloud infrastructure.
Electrification recorded quarterly orders of $6.35 billion, up 93% on a reported basis and 66% organically. Its book-to-bill ratio was approximately 1.7, meaning new orders significantly exceeded the revenue recognized during the period.
Revenue in the segment increased 68% to $3.64 billion, including the contribution from Prolec GE, and grew 29% organically. Growth was driven by switchgear and transformers in Power Transmission and by alternating-current substations and high-voltage direct-current systems within Grid Systems Integration.
Electrification segment EBITDA more than doubled to $671 million from $314 million. Its EBITDA margin expanded to 18.4% from 14.5%, supported by higher volume, productivity and pricing.
The Power segment generated $16.73 billion in orders, an increase of 135% from the prior-year period and 134% organically. The company booked orders for 52 heavy-duty gas turbines, including 15 HA units, and 61 aeroderivative turbines.
Power revenue increased 14% to $5.48 billion, supported by gas equipment volume, pricing and growth in nuclear and gas services.
The segment generated approximately $1.03 billion in EBITDA, compared with $785 million a year earlier. Its EBITDA margin expanded to 18.8% from 16.4% as higher volume and favorable pricing more than offset inflation.
For the overall company, second-quarter revenue increased 22% to $11.1 billion and rose 12% organically. Net income reached $649 million, compared with $492 million in the prior-year quarter, while diluted earnings increased 33% to $2.47 per share.
Adjusted EBITDA increased 62% to $1.25 billion. The adjusted EBITDA margin expanded to 11.3% from 8.5%, while the adjusted organic EBITDA margin improved by 340 basis points to 11.2%.
GE Vernova generated $5.49 billion in operating cash flow and $5.11 billion in free cash flow during the quarter. Quarterly free cash flow was more than the company generated during all of 2025, reflecting stronger earnings and working capital benefits.
First-half free cash flow totaled $9.9 billion, compared with approximately $1.17 billion during the same period of 2025. The company ended June with $13.1 billion in cash.
GE Vernova returned $3.9 billion to shareholders during the first half. It repurchased approximately 2.5 million shares for $2.3 billion during the second quarter and had repurchased 4.3 million shares at an average price of $854 through June 30.
The company also paid a quarterly dividend of $0.50 per share and contributed approximately $500 million to the GE Energy Pension Plan.
GE Vernova invested approximately $400 million in capital expenditures during the quarter to expand production in Power and Electrification. The spending forms part of a plan to invest $6 billion from 2025 through 2028, including $1 billion through Prolec GE between 2026 and 2028.
Research and development spending totaled approximately $300 million during the quarter. GE Vernova intends to invest $5 billion in research and development from 2025 through 2028.
The company’s Wind business remained a weak point. Wind orders declined 39% to $1.25 billion, while revenue fell 10% to $2.03 billion.
Wind reported a segment EBITDA loss of $275 million, compared with a $165 million loss in the prior-year period. The deterioration reflected lower onshore wind equipment deliveries and higher offshore project costs.
GE Vernova nevertheless reported that SunZia, a New Mexico wind project using its 3.8-megawatt turbines, became operational during the quarter. The company described SunZia as the largest renewable energy infrastructure project in U.S. history.
Based on its order pipeline, backlog growth and cash generation, GE Vernova raised its full-year financial guidance.
The company now expects 2026 revenue of between $45.5 billion and $46.5 billion, compared with its previous forecast of $44.5 billion to $45.5 billion.
Free cash flow is now expected to range from $11.5 billion to $12.5 billion, substantially above the previous outlook of $6.5 billion to $7.5 billion. GE Vernova maintained its adjusted EBITDA margin forecast of 12% to 14%.
Power organic revenue is expected to grow between 18% and 20%, up from the previous forecast of 16% to 18%. The segment’s EBITDA margin is expected to range from 17% to 19%.
Electrification revenue is now expected to reach between $14.5 billion and $15 billion, including approximately $3.1 billion from Prolec GE. The company previously projected between $14 billion and $14.5 billion.
Wind organic revenue is expected to decline by a low-double-digit percentage, with the segment projected to report approximately $400 million in EBITDA losses.
The size and composition of GE Vernova’s backlog will remain central to its ability to deliver the raised outlook. Converting reservation agreements into firm orders, expanding manufacturing capacity and executing long-duration equipment and service contracts will determine how quickly the $176 billion pipeline is recognized as revenue.
KEY QUOTES:
“We delivered strong financial results in the second quarter as global demand for our products and solutions continues to grow.”
“With a backlog of $176 billion, continued revenue growth and margin expansion, and significant free cash flow generation, GE Vernova’s momentum is building, and we are raising our 2026 financial guidance.”
“We now expect to have at least 125 GW of gas equipment under contract by year-end 2026. To meet this demand, we remain on track to deliver 20 GW of annual gas turbine output in the third quarter of 2026, with 24 GW in 2028, and we are implementing actions to produce 30 GW in 2030.”
“We are also seeing continued demand growth in Electrification, with data center orders reaching over $5 billion year-to-date, more than double our 2025 total.”
Scott Strazik, CEO of GE Vernova
“Our backlog continued to expand driven by equipment growth at Power and Electrification, with healthy margins from favorable price and disciplined underwriting, and services growth at Power.”
“Given our significant free cash flow generation, we ended the quarter with a cash balance of $13.1 billion, up $4.3 billion in the year, even as we returned more capital to shareholders so far this year than in the full year of 2025.”
Ken Parks, CFO of GE Vernova
