GE Vernova reported strong second-quarter 2026 results, driven by surging demand for its power generation and electrification businesses, prompting the company to raise its full-year financial guidance.

Orders jumped 88 per cent organically to $24.2 billion, while revenue increased 22 per cent to $11.1 billion. The company also generated $5.1 billion in free cash flow, supported by stronger earnings and working capital improvements. Its total backlog reached $176 billion.

“We delivered strong financial results in the second quarter as global demand for our products and solutions continues to grow. With a backlog of $176 billion, continued revenue growth and margin expansion, and significant free cash flow generation, GE Vernova’s momentum is building, and we are raising our 2026 financial guidance,” said Scott Strazik, GE Vernova CEO. “We now expect to have at least 125 GW of gas equipment under contract by year-end 2026. To meet this demand, we remain on track to deliver 20 GW of annual gas turbine output in the third quarter of 2026, with 24 GW in 2028, and we are implementing actions to produce 30 GW in 2030. We are also seeing continued demand growth in Electrification, with data center orders reaching over $5 billion year-to-date, more than double our 2025 total. I am proud of how our team is executing with discipline, and I am confident there is substantial value creation ahead.”

The Power segment led growth, with orders soaring 134 per cent organically to $16.7 billion and revenue rising 14 per cent to $5.5 billion.

GE Vernova signed 20 GW of new gas equipment contracts during the quarter, increasing its gas equipment backlog to 53 GW.

Electrification orders climbed 66 per cent organically to $6.3 billion, while revenue rose 68 per cent to $3.6 billion, supported by strong demand for grid equipment.

Equipment backlog in the segment reached $40.6 billion.

Wind remained under pressure, with orders falling 40 per cent organically and revenue declining 10 per cent due to weaker onshore equipment demand, although the SunZia wind project in New Mexico entered operation.

GE Vernova raised its 2026 guidance, forecasting revenue of $45.5-$46.5 billion and free cash flow of $11.5-$12.5 billion.

"We had a strong first half of 2026 as we executed our financial strategy. Our backlog continued to expand driven by equipment growth at Power and Electrification, with healthy margins from favourable price and disciplined underwriting, and services growth at Power,” said Ken Parks, GE Vernova CFO. “Given our significant free cash flow generation, we ended the quarter with a cash balance of $13.1 billion, up $4.3 billion in the year, even as we returned more capital to shareholders so far this year than in the full year of 2025 through our share repurchase actions and quarterly dividend payment. Based on our strong financial performance, we have increased our full year expectations for revenue and free cash flow.” -OGN/TradeArabia News Service