Strong performance with significant orders and backlog growth, margin expansion, and cash generation
Key Information:
- Strong performance with significant orders and backlog growth, margin expansion, and cash generation.
- Orders of $24.2B, +88% organically led by robust growth in Power and Electrification
- Backlog growth of $13.0B sequentially from equipment and services
- Revenue of $11.1B, +12% organically* led by Power and Electrification
- Free cash flow* of $5.1B, more than all of 2025
- Cash balance of $13.1 billion, after returning $3.9 billion of cash to shareholders year-to-date
- Raising 2026 financial guidance
- Revenue: $45.5-$46.5 billion (up from $44.5-$45.5 billion)
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- Free cash flow*: $11.5-$12.5 billion (up from $6.5-$7.5 billion)
- Adjusted EBITDA margin*: remains 12%-14%
- Expanding our production capacity in Power and Electrification through lean and capital-efficient investments
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- In Gas Power, now reached our 20GW annualized run rate for gas turbines and are on track for 24GW in ’28
- See further opportunity to serve this growing demand with 30GW of annual output in 2030
See materials for updated segment guidance for Power and Electrification.
Second Quarter 2026 Highlights:
- Orders of $24.2B, +88% organically led by robust growth in Power and Electrification
- Backlog growth of $13.0B sequentially from equipment and services
- Gas Power equipment backlog and slot reservation agreements grew from 100 to 116 GW; now anticipate reaching at least 125 GW by year-end 2026
- Revenue of $11.1B, +22%, +12% organically* led by Power and Electrification
- Net income of $0.6B; net income margin of 5.8%
- Adjusted EBITDA* of $1.2B; adjusted EBITDA margin* of 11.3%, up +340 basis points organically*
- Cash from operating activities of $5.5B; free cash flow* of $5.1B, more than all of 2025
Quote from CEO Scott Strazik:
“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. I am proud of how our team is executing with discipline, and I am confident there is substantial value creation ahead.”
Quote from CFO Ken Parks:
“We had a strong first half of 2026 as we executed our financial strategy. 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 through our share repurchase actions and quarterly dividend payment. Based on our strong financial performance, we have increased our full year expectations for revenue and free cash flow.”
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures can be found within GE Vernova’s second quarter 2026 earnings materials posted to www.gevernova.com/investors
