- Company name
- GE Vernova
- Sector
- Power and grid equipment
- About
- GE Vernova makes and services equipment that generates, moves and stores electricity. It has three segments. Power makes gas turbines and nuclear and hydro equipment, and it services this equipment for many years after the sale. Electrification makes grid equipment such as transformers, switchgear and high-voltage systems, and it includes Prolec GE, which GE Vernova fully owns since February 2, 2026. Wind makes onshore and offshore wind turbines and blades. Revenue was $38.1 billion in 2025 and $12.6 billion in Q3 2026. Backlog was $197 billion at September 30, 2026, and services were $92.7 billion of the contracted revenue still to come. General Electric spun off GE Vernova as an independent company in April 2024.
- Thesis
- The market doubts that the current boom in orders for gas turbines and grid equipment will last. Much of the new demand comes from data centers and from utilities that prepare for them, and press reports linked a fall in the stock in October 2026 to doubts about spending on AI data centers. Investors also see that the 2026 free cash flow guidance of $16 billion to $17 billion depends on customer down payments. Contract liabilities rose to $45.7 billion at September 30, 2026, from $25.8 billion at the end of 2025. Wind still loses money, and the company expects $400 million to $500 million of segment EBITDA losses in 2026. For the gap to close, three things must be true. Orders must turn into revenue at higher margins, so that the adjusted EBITDA margin moves from 15.4% in Q3 2026 toward the 2028 target of 20%. Gas Power must have at least 130 GW of equipment under contract by the end of 2026, as the company expects, and convert slot reservations to orders. Free cash flow must stay strong after down payments stop rising. The Q4 2026 report, expected in late January 2027, gives the next test with the 2027 guidance. The close of the Trench Group purchase, expected in late 2027, is a second test. If orders and margins hold, the gap can close within one to two years. The main reason it may not close is a slowdown in data center building, which can cut new orders for gas turbines.
- Risks
- Demand depends on a strong cycle of spending by utilities and data centers. If data center building slows, new orders for gas turbines and grid equipment can fall. Gas Power equipment backlog and slot reservations were 122 GW at September 30, 2026.
Much of the cash comes from customer down payments. Contract liabilities and deferred income were $45.7 billion at September 30, 2026. When deliveries use up these payments and new orders slow, free cash flow can fall sharply.
The company must raise gas turbine output to 24 GW a year in 2028 and integrate Prolec GE and Trench Group. Delays, supply problems or cost overruns can lower margins on the large backlog.
Wind loses money. The company expects $400 million to $500 million of segment EBITDA losses in 2026. In Q3 2026, it resolved all litigation about the Vineyard Wind offshore project.
The Chief Financial Officer changes on January 1, 2027, and the $9.0 billion Trench Group purchase can use a large part of the cash.
- Balance sheet
- Cash: $16.8B
Debt: $2.8B
Net cash: $13.9B
Undrawn credit line: $3.0B, to April 2029
Debt due within 12 months: $31M
Last debt due: 2056
Ratings: S&P BBB (positive outlook), Fitch A- (stable outlook)
GE Vernova has little debt and a large cash balance. At September 30, 2026, cash, cash equivalents and restricted cash were $16.8 billion, of which $0.4 billion was restricted. Much of this cash came from customer down payments: contract liabilities and deferred income were $45.7 billion, up from $25.8 billion at December 31, 2025. Borrowings had a carrying value of $2.83 billion. They were mostly the $2.6 billion of senior notes issued on February 4, 2026 and due in 2031, 2036 and 2056, plus $281 million of other borrowings and finance leases. Current maturities were $31 million. The $3.0 billion revolving credit facility matures on April 2, 2029 and had no borrowings. S&P rates GE Vernova BBB with a positive outlook, and Fitch rates it A- with a stable outlook. In the first nine months of 2026, the company paid $4.8 billion, net of cash acquired, for Prolec GE and $5.3 billion for its own shares. It agreed to pay $9.0 billion for Trench Group, with the close expected in late 2027.
As of 2026-09-30.
- Checkpoints
- Jan 27, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: Backlog above $200 billion, at least 130 GW of gas equipment under contract and 2027 guidance for higher margins pass; lower orders or a weaker margin outlook fail.
2027 (estimate): Trench Group purchase closes. Pending. Watch: A close in late 2027 on the agreed terms, with Electrification margins near the 2028 target of 22%, passes; a delay, new conditions or lower Electrification margins fail.
- Recent events
- 2026-10-28: GE Vernova reported Q3 2026 results. Orders grew 96% organically to $29.3 billion, and backlog reached $197 billion. Revenue grew 27% to $12.6 billion, or 18% organically. Net income was $1.3 billion, the adjusted EBITDA margin was 15.4% and free cash flow was $5.4 billion. The company raised its 2026 guidance to revenue of $46.5 billion to $47.5 billion, an adjusted EBITDA margin of 13.5% to 14.5% and free cash flow of $16 billion to $17 billion. The board raised the share buyback authorization to $20 billion from $10 billion.
2026-10-28: GE Vernova agreed to buy Trench Group, a maker of high-voltage grid equipment, for the equivalent of $9.0 billion. It expects the purchase to close in late 2027, after regulatory approvals.
2026-08-25: Chief Financial Officer Kenneth Parks decided to retire on April 2, 2027. Claire McDonough, the Chief Financial Officer of Rivian Automotive, will become Chief Financial Officer on January 1, 2027.
2026-08-12: Fitch raised its long-term credit rating on GE Vernova to A- from BBB+, with a stable outlook.
2026-07-22: GE Vernova reported Q2 2026 results. Orders grew 88% organically to $24.2 billion, revenue grew 22% to $11.1 billion and free cash flow was $5.1 billion. It raised its 2026 guidance to revenue of $45.5 billion to $46.5 billion and free cash flow of $11.5 billion to $12.5 billion. It said that it is on track to make 20 GW of gas turbines a year from Q3 2026 and 24 GW in 2028.
2026-02-04: GE Vernova issued $2.6 billion of senior notes due 2031, 2036 and 2056. It used the money in part to pay for Prolec GE.
2026-02-02: GE Vernova completed the purchase of the remaining 50% of Prolec GE from Xignux for cash of $5.2 billion. The remeasurement of its earlier 50% stake gave a pre-tax gain of $4.0 billion.
2026-01-28: GE Vernova reported 2025 results. Orders were $59.3 billion, up 34% organically, revenue was $38.1 billion and free cash flow was $3.7 billion. For 2028, it now expects revenue of $56 billion, an adjusted EBITDA margin of 20% and cumulative free cash flow of at least $24 billion from 2025 to 2028.