GEV — GE Vernova Inc.

Summary of GE Vernova Inc. Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Orders: $18.3 billion, up 71% year-over-year, resulting in a book-to-bill ratio of approximately 2.
• Backlog: Increased to $163 billion, with equipment backlog at $76 billion (up 67% year-over-year).
• Revenue: Grew by 7% year-over-year, with equipment revenue rising 10% and services revenue increasing 4%.
• Adjusted EBITDA: Rose to $896 million, an 87% increase year-over-year, with a margin expansion of 390 basis points.
• Free Cash Flow: Generated $4.8 billion, significantly higher than the full-year 2025 total of $3.7 billion.
• Shareholder Returns: Returned approximately $1.4 billion to shareholders through dividends and share repurchases.

2. Strategic Updates and Business Highlights

• Backlog Growth: Increased backlog driven by a strong demand for Gas Power and Electrification solutions, with expectations to reach $200 billion by 2027.
• Gas Power: Notable demand for gas turbines, signing contracts for 21 gigawatts in Q1, increasing total gigawatts under contract from 83 to 100.
• Electrification: Significant growth in backlog from $9 billion to $42 billion since year-end 2022, driven by data center orders.
• Nuclear Projects: Progress on Small Modular Reactor (SMR) projects in Canada, with regulatory approvals received for construction milestones.
• Operational Improvements: Initiatives like CEO Kaizen Week aimed at enhancing safety, quality, and cost efficiency, with projected EBITDA improvements exceeding $100 million.

3. Forward Guidance and Outlook

• Revenue Guidance: Raised to $44.5 billion to $45.5 billion for 2026, reflecting strong growth in Electrification.
• Adjusted EBITDA Margin: Increased guidance to 12% to 14%, driven by Power and Electrification.
• Free Cash Flow Guidance: Increased to $6.5 billion to $7.5 billion for 2026.
• Segment Expectations: Anticipated revenue growth of 16% to 18% in Power and 14.0 billion to 14.5 billion in Electrification.

4. Bad News, Challenges, or Points of Concern

• Wind Segment Performance: Wind revenue decreased by 25% due to lower Onshore equipment deliveries, with expected EBITDA losses between $200 million and $300 million in Q2.
• Tariff Impacts: Anticipated net tariff impacts of $250 million to $350 million for 2026, affecting margins.
• Market Uncertainties: Ongoing permitting delays and tariff uncertainties in the U.S. market for new Onshore equipment.
• Competitive Pressures: Competitors are cautious about taking orders beyond 2030, raising concerns about future capacity and supply chain constraints.

5. Notable Q&A Insights

• Gas Power Capacity: Management indicated a lead time of about three years for capacity planning, with ongoing investments in production capacity expected to enhance productivity.
• Electrification Market Share: Management emphasized the importance of integrated solutions in gaining market share, particularly in Power Transmission.
• Framework Agreements: No long-term framework agreements have been closed yet, but discussions are ongoing with customers for commitments at current pricing.
• Customer Demand: Strong demand for gas turbines remains, with diverse customer engagement across multiple countries, indicating robust future growth potential.

Overall, GE Vernova Inc. reported a strong start to 2026, with significant growth in orders, backlog, and free cash flow, while also addressing challenges in the Wind segment and tariff impacts. The company remains optimistic about its strategic initiatives and market opportunities moving forward.