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GE Vernova Inc. GEV stock fell Wednesday after the company reported mixed second-quarter 2026 results, with revenue beating expectations but earnings falling short.
Diluted EPS of $2.47 missed the $3.13 analyst estimate. Revenue rose 22% year over year to $11.104 billion, topping the $10.734 billion estimate.
Net income increased to $649 million from $492 million. Adjusted EBITDA rose 62% to $1.25 billion, while margin expanded to 11.3% from 8.5% on higher volume, pricing and productivity.
Equipment revenue climbed 32% to $6.46 billion, while services revenue increased 10% to $4.65 billion.
Orders And Backlog
Orders surged 88% organically to $24.22 billion, driven by 130% growth in equipment orders and a 15% increase in services orders.
Backlog reached $176.3 billion, rising $13 billion sequentially and $47.6 billion year over year. Management expects backlog to reach $200 billion in 2027.
Segment Performance
Power revenue rose 14% to $5.48 billion, while EBITDA increased to $1.03 billion and margin expanded to 18.8%.
Orders more than doubled to $16.73 billion. GE Vernova signed 20 gigawatts of new gas contracts, converted 10 gigawatts of reservations and shipped 3 gigawatts.
Backlog and slot reservations reached 116 gigawatts, with at least 125 gigawatts expected by year-end.
Electrification revenue rose 68% to $3.64 billion, including Prolec GE, and increased 29% organically. EBITDA more than doubled to $671 million, while margin improved to 18.4%. Orders climbed 66% organically to $6.35 billion, and backlog rose 69% to $40.6 billion.
First-half data-center orders exceeded $5 billion.
GE Vernova’s Wind business remained a drag on overall performance. Wind orders plunged 40% organically to $1.2 billion as U.S. Onshore Wind demand stayed weak, while revenue fell 10% to $2.03 billion.
The segment’s EBITDA loss widened to $275 million from $165 million a year earlier, hurt by lower Onshore Wind deliveries and higher Offshore Wind project costs.
Cash And Capital Returns
Operating cash flow rose to $5.49 billion from $367 million, while free cash flow increased to $5.11 billion from $194 million.
GE Vernova ended the quarter with $13.1 billion in cash and returned $3.9 billion to shareholders year to date, including $3.7 billion through share repurchases.
The company repurchased about 2.5 million shares for $2.3 billion during the quarter and paid a quarterly dividend of 50 cents per share.
Management Commentary
Management said gas demand remains broad, with Southeast Asia accelerating. First-half gas-equipment pricing rose more than 20% from fourth-quarter 2025 levels, while service orders per unit grew at double-digit rates.
Contracted gas capacity should continue rising over the next six quarters, though management stopped short of calling 2026 the peak order year.
Aeroderivative turbines are gaining traction as interim power solutions. Data-center content per gigawatt could eventually increase two to three times, with the larger opportunity expected from 2027.
Management also warned that second-half free cash flow will be materially lower as slot-reservation deposits ease. U.S. Onshore Wind orders remain uncertain amid permitting delays and Section 232 tariffs.
Raised Outlook
GE Vernova raised 2026 revenue guidance to $45.5 billion-$46.5 billion, above the $45.45 billion analyst estimate.
The company also lifted free cash flow guidance to $11.5 billion-$12.5 billion and maintained adjusted EBITDA margin guidance of 12%-14%.
GEV Stock Price Activity: GE Vernova shares were down 6.79% at $1,008.75 at the time of publication on Wednesday, according to Benzinga Pro data.
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This article GE Vernova Stock Falls After Profit Miss, Wind Unit Remains a Drag originally appeared on Benzinga.com.
