stockrowWhat it does
GE Vernova makes and services equipment used to generate electricity and move it from power plants to customers. Its customers include utilities, independent power producers, industrial companies, governments and large electricity users. The company is headquartered in Cambridge, Massachusetts, and Scott Strazik is its chief executive officer.
The company has three businesses. Power supplies gas and steam turbines, nuclear technology and hydropower equipment, along with maintenance and upgrades. Wind makes onshore and offshore wind turbines and blades and services operating wind farms. Electrification supplies equipment and software for transmitting, distributing, converting and storing electricity, including transformers, switchgear and substations.
GE Vernova sells both new equipment and services for machinery already in use. Those services range from replacement parts and maintenance to upgrades and monitoring intended to improve equipment performance. Its gas power business supports assets over their operating lives, while its wind services business monitors and helps optimize wind farms.
GE Vernova’s installed base generates approximately 25% of the world’s electricity. The company operates globally and had approximately 75,000 employees in FY2025. It became an independent company following its separation from General Electric Company in 2024.
How it makes money
GE Vernova earns revenue by selling power and grid equipment and by servicing equipment after installation. Its contracts include equipment orders, long-term service agreements, spare parts, maintenance programs and other service work. Pricing and contract terms vary with demand, inflation and industry conditions.
Power sells turbines and related equipment for gas, nuclear, hydro and steam generation. Its Gas Power business also maintains and services equipment over its operating life. At December 31, 2025, its gas turbine installed base included approximately 7,000 units, of which approximately 1,800 were under long-term service agreements with an average remaining contract life of approximately 10 years. Service revenue can also come from individual parts and maintenance orders outside those agreements.
Wind sells onshore and offshore turbines and blades, and provides services to wind farms. At December 31, 2025, service agreements covered approximately 24,000 onshore turbines out of an installed base of approximately 59,000 units. Electrification sells grid equipment, systems, software and services, including transmission links, substations, transformers and switchgear.
Total revenue was $38.1 billion in 2025; revenue increased 18% year over year in the third quarter of 2026.
GE Vernova’s remaining performance obligations, a measure of unfilled equipment and services commitments, were $150.2 billion at December 31, 2025. The company reported a $197 billion backlog at the end of the third quarter of 2026. Backlog includes work to be delivered over time, rather than revenue already earned. Service agreements can run for years, while equipment deliveries depend on production and project schedules.
Customers and how it sells
GE Vernova serves utilities, independent power producers, developers, governments, industrial customers and other large electricity users. Its Power segment sells to customers worldwide, while Grid Solutions serves utilities and industries that need to manage electricity from generation through consumption. Data centers are among the customers for its power and grid offerings.
In the third quarter of 2026, the company said gas power demand came from approximately 100 customers in 25 different countries. Approximately 80% were traditional customers and 20% were for data centers. In Electrification, GE Vernova said it had signed its first MVUPS order with a hyperscaler and several energy management system orders in 2026.
GE Vernova operates in over 100 countries. Its employee footprint includes approximately 24,000 employees in Europe, 21,000 employees in the U.S., 19,000 employees in Asia and 6,000 employees in Latin America. At December 31, 2025, the U.S. represented approximately 60% of Onshore Wind’s equipment remaining performance obligations.
The company works with customers through equipment sales, project delivery and ongoing service relationships. It also sells to public utilities, state-owned companies and other public-sector customers, whose purchases can carry additional procurement requirements.
Suppliers and costs
GE Vernova purchases approximately $20 billion in materials and components annually, sourced from over 100 countries. It relies on third-party suppliers, contract manufacturers, service providers and commodity markets for raw materials, parts, components and subsystems. Some inputs, including semiconductor chips, specialty metals and rare earths, are limited or sole-sourced, concentrated among a small number of suppliers or primarily available from one country.
The company manufactures and services products through a global network. It seeks to localize supply chains for particular regions while retaining a geographically diverse supplier base. It also uses measures such as long-term supply agreements, dual sourcing, inventory and capacity expansion to address supply constraints.
Tariffs, materials, labor, logistics and warranty work affect costs. The net cost impact of global tariffs was approximately $250 million for 2025, after contractual protections and mitigating actions. Warranty and quality-related costs have also represented a meaningful portion of expenses.
GE Vernova completed its acquisition of the remaining stake in transformer manufacturer Prolec in 2026. It has also agreed to acquire Trench Group, an existing supplier of high-voltage components, for $9 billion, with closing expected in late 2027. The company expects the deal to give it more control over component supply.
- Revenue$38.1B
- Cost of revenue−$30.5B
- Research and development−$1.2B
- Selling, general and administrative−$4.9B
- Operating income$1.4B
Competitive position
GE Vernova competes on product performance, quality, branding, service and price. Its businesses operate in competitive markets, with companies competing across individual products or several product lines. GE Vernova also faces emerging competitors as demand for power equipment and services exceeds available capacity.
In Power, named competitors include Siemens Energy, Mitsubishi Power, Westinghouse, Framatome and Rolls-Royce. Wind competitors include Vestas, Siemens-Gamesa, Nordex, Envision and Goldwind. In Electrification, competitors include Hitachi Energy, Siemens Energy, Siemens, Schneider Electric, Mitsubishi Electric and ABB.
GE Vernova said it has historically held about 50% of the North America onshore wind market. It also has a gas turbine installed base with equipment under long-term service agreements and an onshore wind installed base with service agreements covering many turbines.
Our reading: The installed base and service agreements are a meaningful competitive advantage because they connect GE Vernova to customers after equipment is installed, although customers can still compare service and price. Our reading: Its range of generation and grid technologies is another advantage when customers need several kinds of equipment, but the named competitors show that breadth does not eliminate competition in individual markets. Our reading: Patents and manufacturing know-how support its position, but no single intellectual property asset is material to a segment or to the company as a whole.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Siemens Energy | Power generation and electrification equipment | High |
| Mitsubishi Power | Power generation equipment and services | High |
| Westinghouse | Power segment | Medium |
| Framatome | Power segment | Medium |
| Rolls-Royce | Power segment | Medium |
| Vestas | Wind equipment and services | High |
| Siemens-Gamesa | Wind equipment and services | High |
| Nordex | Wind equipment and services | Medium |
Growth opportunities
GE Vernova expects growth in demand for equipment and services used to generate electricity and modernize grids. It sees orders from customers connecting new power sources, electrifying industries, building data centers and upgrading existing infrastructure. In Power, it is investing in existing factories to increase capacity for equipment and services.
The company is developing small modular reactor technology through joint ventures with Hitachi, Ltd. In the third quarter of 2026, GE Vernova won a technology selection for its small modular reactor in Sweden. It is also developing solid-state transformers and has received notification of a hyperscaler award for an outdoor unit, with contracting to advance in the fourth quarter of 2026.
GE Vernova projects its existing addressable Electrification market will reach $300 billion by 2030. It projects the global high-voltage equipment market to be $130 billion by the end of the decade. Those are the company’s market estimates, not revenue targets.
Acquisitions are another part of its strategy. GE Vernova completed its purchase of the remaining stake in Prolec, expanding its transformer operations. Its proposed acquisition of Trench would add high-voltage components, including bushings, instrument transformers and coils. The company expects the acquisition to close in late 2027, subject to approvals.
GE Vernova also plans to invest approximately $5 billion in cumulative research and development from 2025 through 2028, divided between existing products and the installed base and longer-term innovation.
- $33.0BFY2021
- $29.7BFY2022
- $33.2BFY2023
- $34.9BFY2024
- $38.1BFY2025
- $46.5BFY2026 guidance
Structural risks
- Product quality and execution: Defects or performance problems can lead to warranty costs, repairs, replacements, project delays, damage claims and regulatory action. A serious failure could also cause injuries, power outages or environmental impacts.
- Supply chain and capacity: Shortages of materials or skilled labor, supplier problems, tariffs and transportation disruptions can delay deliveries and increase costs. Some inputs are available from only a limited number of suppliers or countries, and capacity expansions require capital and lead time.
- Wind projects and policy: Offshore Wind has faced project-cost and execution-timeline pressure. In U.S. onshore wind, customers face permitting delays and tariff uncertainty, and GE Vernova said it remains difficult to identify when orders will turn upward.
- Long-cycle contracts: Power projects can take years to deliver. Inflation and changes in costs during that period can affect contract economics, while financing and other complexities can make deal closures uncertain in emerging markets.
- Regulation: GE Vernova’s products and operations are subject to environmental, safety, export-control and other rules across multiple jurisdictions. Nuclear products face country-specific safety requirements, and compliance can impose substantial costs.
- Acquisition execution: The proposed Trench purchase requires regulatory approvals and other closing conditions. GE Vernova plans to integrate manufacturing and sourcing operations and pursue cost and revenue synergies after the deal closes.
Bottom line
Our reading
GE Vernova combines equipment sales with long-lived service relationships across power generation, wind and electricity networks. Its installed base and backlog give it access to future work, while the timing and profitability of that work depend on delivery and execution. (item1; item7)
Growth in power and grid demand sits alongside supply constraints, project risks and uncertainty in wind; the proposed Trench acquisition would expand the grid business but also add integration work. (item1a; call_prepared)