GE Vernova Inc. (GEV) Earnings & Analysis

Latest quarter

GE Vernova reported third-quarter revenue of $12.6 billion, above the consensus estimate of $12.1 billion. Adjusted earnings per share were $4.81, compared with the consensus estimate of $4.03.

Revenue rose 26.8% from $10.0 billion a year earlier, while diluted earnings per share increased from $1.64 to $4.81. The company’s filing attributed equipment revenue growth partly to its Prolec GE acquisition and higher switchgear and transformer volumes at Electrification, as well as higher gas turbine deliveries and favorable pricing at Power. Lower onshore wind equipment deliveries partly offset those gains.

Chief Financial Officer Ken Parks said Electrification revenue rose 51% on a reported basis, including Prolec, and 16% organically. He said Wind revenue increased 3%, with higher onshore services and offshore deliveries partly offset by lower onshore equipment deliveries.

GE Vernova’s operating margin rose to 11.0% from 3.68% a year earlier. Free cash flow increased to $5.4 billion from $732.0 million; Parks said customer down payments on orders and slot reservations helped produce a working-capital cash benefit.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Scott Strazik said demand extended across both equipment and services. He said GE Vernova signed 11 gigawatts of gas orders and slot reservation agreements in the third quarter while shipping 5 gigawatts, taking capacity under contract from 116 to 122 gigawatts. Gas equipment backlog, he said, was now greater than the slot reservation balance.

Strazik said third-quarter gas equipment orders were priced more than 20% above fourth-quarter 2025 orders, reflecting higher turbine prices and a greater mix of aeroderivatives. Asked about pricing, he said he expected the price per kilowatt of fourth-quarter orders to be lower than in the third quarter because of the product mix. Parks said Electrification pricing remained positive, though the rate of growth varied by product.

On margins, Strazik said the quarter marked the start of shipments of better-priced gas equipment. Parks attributed Power’s EBITDA margin expansion to price and volume, which more than offset inflation and additional investment expenses. Strazik said GE Vernova had spent $2.4 billion on research and development and capital expenditure in 2026 through the third quarter.

The company also agreed to acquire Trench Group for $9 billion. Strazik said its high-voltage components would broaden GE Vernova’s portfolio and give it greater control over supply. Asked about revenue synergies, he said the company was not yet in a position to quantify them. Parks said the purchase was expected to be funded with an equal mix of debt and cash, with closing anticipated in late 2027.

Analysts also asked about Wind’s future. Strazik said the company had another year of North Sea offshore execution and wanted to see how the U.S. market developed before evaluating how to invest in the business. Parks said permitting delays and tariff uncertainty made the timing of a turn in U.S. orders difficult to call.

Guidance

GE Vernova raised its FY2026 revenue outlook to $46.5 billion–$47.5 billion from $45.5 billion–$46.5 billion. Parks said the company also raised its adjusted EBITDA margin outlook to 13.5 to 14.5% and its free cash flow outlook to $16 to $17 billion.

For Power, Parks raised expected organic revenue growth to 19% to 21% from 18% to 20%, and the EBITDA margin range to 19% to 21% from 17% to 19%. He said Wind organic revenue was now expected to decline by mid-single digits rather than low double digits, partly because of additional onshore turbine deliveries.