GE Vernova (GEV) Q1 2026 Earnings Call — April 22, 2026

Source: GE Vernova Q1 2026 press release (Apr 22, 2026) + Investing.com full transcript (Apr 22, 2026).

Scott Strazik (CEO): We've had a solid start to 2026. As global electrification accelerates, the structural drivers underpinning demand for our solutions continue to strengthen. The growth is just starting, and there is no company better positioned to serve and transform the global electricity system than GE Vernova. Since our spin, we launched with $116 billion backlog. We've grown this backlog to $163 billion with an 80% increase in our equipment backlog at considerably better margins. In the last 90 days, we've added $13 billion to our total backlog and now expect to reach $200 billion in backlog in 2027 versus our previous expectation of 2028.

In Power, we delivered strong results and further margin expansion in 1Q, even with the continuing investments in capacity expansion and SMR. We saw continued strength in new gas turbine agreements in Q1, signing 21 GW in countries like the U.S., Vietnam, Mexico, Brazil and Canada, to grow our total GW under contract from 83 to 100 GW sequentially. Our momentum has continued into April — quarter to date, we have booked more power equipment orders in terms of value than we did in all of Q1 2026. On pricing, we expect our orders in the first half of 2026 to be priced 10-20 points higher than our 4Q 2025 orders on a $ per kW basis. We now expect to book 10-15 gigawatts of contracts in Q2 and to end 2026 with at least 110 gigawatts under contract.

On production capacity, we now have installed over 280 new machines in our Gas Power factories and remain on track to reach 20 gigawatts of annualized output by 3Q. We also continue to make progress on our commercial pipeline in North America as well as Europe. We are inspired and appreciative of the U.S. and Japanese government's announcement of up to $40 billion for GE Vernova Hitachi Nuclear Energy to build SMRs in the U.S.

Turning to electrification. Electrification's growth trajectory has been significant. Since year-end 2022, its backlog has grown from 9 to $42 billion, and we expect substantially more growth moving forward. Data centers accounted for approximately $2.4 billion in orders in Q1, more than the full year of 2025. Our Q1 Electrification orders to data centers were more than full-year 2025 results. Our HVDC backlog represents approximately $10 billion to be delivered over the coming years.

Ken Parks (CFO): In the first quarter, we booked orders of $18.3 billion, a 71% increase year over year, and a book-to-bill ratio of approximately 2. Equipment orders more than doubled, while services orders increased 25%. Our backlog expanded to $163 billion, with equipment backlog increasing to $76 billion and services backlog growing to $87 billion. Revenue increased 7%, with equipment revenue rising 10% (39% growth at Electrification and 25% at Power more than offset lower wind). Adjusted EBITDA grew 87% year over year to $896 million, led by Electrification and Power.

We generated $4.8 billion of free cash flow in the first quarter, driven by higher down payments on increased orders and slot reservations at Power, as well as higher orders at Electrification. Working capital was a $5.3 billion cash benefit. We completed the acquisition of the remaining 50% ownership stake of Prolec for $5.3 billion, and we recognized $4.5 billion of gains from M&A transactions. We ended 1Q with a healthy cash balance of approximately $10.2 billion, after returning $1.4 billion of cash to shareholders.

Power orders grew 59%, led by Gas Power equipment more than doubling year over year. Power revenue increased 10%. We shipped a total of 25 gas turbines in the quarter, a 32% increase year over year. Electrification orders increased 86% year over year to approximately $7.1 billion; revenue increased 61% on a U.S. GAAP basis (+29% organic). Electrification equipment backlog grew to $39 billion, up 75%. Wind orders increased 85%; wind revenue decreased 25% in the quarter, and wind EBITDA losses were $382 million, in line with expectations.

For the full year, we are raising our guidance: revenue of $44.5 to $45.5 billion (up $500 million), adjusted EBITDA margin of 12% to 14% (up 1 point at both ends), and free cash flow of $6.5 to $7.5 billion (up from $5 to $5.5 billion). For Power, we now anticipate 16-18% organic revenue growth and 17-19% segment EBITDA margins. In Electrification, we're raising revenue to $14-14.5 billion and EBITDA margin to 18-20%. In Wind, we continue to expect organic revenue down low double digits and approximately $400 million of EBITDA losses.

Q&A Highlights (condensed from full transcript)

• Q (Mark Strauss, JPM): Gas Power capacity and lead times? A: ~3-year lead time; still capacity in 2029/2030; sold a lot of 2030 slots in Q1 (EPC schedules); ~10 GW remaining cumulatively in 2029-2030; added ~1,800 production workers in the U.S. between 2025-2026.
• Q (Julian Mitchell, Barclays): Electrification capacity and tariffs? A: $5.3B spent to add three U.S. factories (Prolec) plus Mexico/Brazil; EMS solution attached to power + substation; tariff impact ~$250-350M net for 2026, fully built into outlook.
• Q (Nicole DeBlase, DB): Gas pricing beyond 1H26? A: New bidding activity still 10-20 points higher $/kW than 4Q25; SRAs converting 10-20% above the orders book; incremental pricing to flow to backlog.
• Q (Andrew Kaplowitz, Citi): Data center entitlement? A: ~$200-300M per GW; EMS wins (2nd order in April) raising entitlement; MV-UPS incremental orders possible 2H26; SST next year.
• Q (David Arcaro, Morgan Stanley): Framework agreements? A: Customers want 5-year commitments at today's pricing; no transaction closed yet — incremental orders continue (~20% of our 100 GW is direct to data centers).
• Q (Joe Ritchie, Goldman): Orders beyond 2030? A: We continue to take orders for 2031+; we don't find HD gas turbines to be the gating item; our larger installed base means we must keep investing in supply chain; 231 HA units on order, 100+ not yet commissioned.
• Q (Alexander Virgo, Evercore): April orders clarification? A: In April we booked power equipment orders equivalent in value to the full first quarter.