GE Vernova — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $12.6 billion, a 27% increase year-over-year (YoY) and 18% organically.
• Net income for Q3 2026 was $1.3 billion, with a net income margin of 10.2% compared to 4.5% in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $1.9 billion, up from $811 million in Q3 2025, with an adjusted EBITDA margin of 15.4% (up 690 basis points organically).
• Free cash flow for Q3 2026 was $5.4 billion, an increase of $4.7 billion from the prior year period.
• Cash from operating activities for Q3 2026 was $6.1 billion, up from $980 million in Q3 2025.
• Total orders for Q3 2026 were $29.3 billion, a 96% organic increase.
• Backlog reached $197 billion, growing $20 billion sequentially from equipment and services.
• Nine-month revenue (YTD) was $33.1 billion, up 22% YoY, with organic revenue up 13%.
• Nine-month net income was $6.7 billion, up from $1.2 billion in the prior year period.
• Nine-month adjusted EBITDA was $4.1 billion, up from $2.0 billion in the prior year period.
• Nine-month free cash flow was $15.3 billion, up from $1.9 billion in the prior year period.
• Cash balance was $16.8 billion at quarter end.
• Capital returned to shareholders in the first nine months of 2026 totaled $5.7 billion.

Guidance and Future Outlook:

• 2026 revenue guidance raised to $46.5–$47.5 billion (previously $45.5–$46.5 billion).
• 2026 adjusted EBITDA margin guidance raised to 13.5%–14.5% (previously 12%–14%).
• 2026 free cash flow guidance raised to $16–$17 billion (previously $11.5–$12.5 billion).
• Power segment 2026 organic revenue growth guidance raised to 19%–21% (previously 18%–20%); segment EBITDA margin raised to 19%–21% (previously 17%–19%).
• Electrification segment 2026 revenue guidance set at $14.5–$15.0 billion, including ~$3.1 billion from Prolec GE; segment EBITDA margin guidance 18%–20%, trending toward the higher end.
• Wind segment 2026 organic revenue guidance revised to down mid-single digits (previously down low-double digits); segment EBITDA losses guidance revised to $400–$500 million (previously ~$400 million).
• Gas Power equipment backlog and slot reservation agreements grew to 122 GW, with an expectation to reach at least 130 GW by year-end 2026.
• Backlog is expected to exceed $200 billion in Q4 2026.

Business Segments and Product Lines:

• Power: Orders of $21.8 billion increased 178% organically; revenue of $6.1 billion increased 25% organically. Segment EBITDA margin grew 800 basis points to 21.4%. Signed 11 GW of new gas equipment contracts (8 GW slot reservations, 3 GW orders) and converted 13 GW of existing slot reservations to orders.
• Electrification: Orders of $5.4 billion decreased 9% organically due to large synchronous condenser orders in Q3 2025; revenue of $3.9 billion increased 51% (16% organically). Segment EBITDA margin grew 400 basis points to 19.1%. Equipment backlog increased to $42.2 billion, up $15.7 billion YoY, including $5 billion from Prolec GE.
• Wind: Orders of $2.1 billion increased 16% organically, driven by Onshore Wind in North America. Revenue of $2.7 billion increased 4% (3% organically). Segment EBITDA margin improved 490 basis points to 2.6%. Resolved all outstanding litigation regarding the Vineyard Wind offshore wind project.

Market and Competitive Landscape:

• Demand for electricity infrastructure is increasing globally, driving robust equipment growth in Power and services strength.
• Strong demand for grid equipment continues, particularly in North America within the Electrification segment.
• Fitch upgraded GE Vernova's investment grade credit rating to A- from BBB+ in August 2026 with a stable outlook.
• The company is targeting utility and data center customers with electrification technologies supporting integration and resiliency.

Risks and Challenges:

• Forward-looking statements are subject to risks including quality issues, safety failures, supply chain disruptions, and manufacturing capacity constraints.
• Risks include the ability to manage costs, execute long-term service obligations, and successfully compete.
• Potential impacts from tariffs, changes in energy/environmental/tax laws, and geopolitical events are noted.
• The acquisition of Trench Group is subject to regulatory approvals, potential delays, and integration risks.
• Risks related to the separation from General Electric Company and obligations to GE remain.

Management Commentary and Tone:

• CEO Scott Strazik stated the company delivered strong financial results with improved margins and raised 2026 guidance, citing confidence in the trajectory and disciplined execution.
• CFO Ken Parks highlighted robust orders, revenue growth, margin expansion, and significant free cash flow generation, noting increased confidence in making high-growth investments and returning cash to shareholders.
• Management emphasized innovation in electrification technologies for utility and data center customers.

Other Key Points:

• The Board of Directors increased the share repurchase authorization to $20 billion in October 2026, up from $10 billion, with $10.1 billion remaining.
• GE Vernova repurchased approximately 1.7 million shares for $1.6 billion in Q3 2026 and 1.4 million shares for $1.3 billion from October 1 to October 23, 2026.
• A quarterly dividend of $0.50 per share was declared on September 30, 2026, payable on November 24, 2026.
• The company entered into agreements to transfer a portion of retiree benefit obligations to an insurer, resulting in approximately $350 million paid in the quarter.
• GE Vernova announced an agreement to acquire Trench Group, a global leader in high-voltage grid equipment, for $9.0 billion USD equivalent, with closing expected in late 2027.
• Capital expenditures for the quarter were $0.6 billion; the company is committed to investing $6 billion in capex from 2025 through 2028.
• R&D spending for the quarter was $0.4 billion; the company is committed to investing $5 billion in R&D from 2025 through 2028.
• The company reported zero fatalities in the third quarter of 2026.