Full Transcript: GE Vernova Q2 2026 Earnings Call

GE Vernova (NYSE: GEV ) held its second-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

The full earnings call is available at Watch the full earnings call below: Summary GE Vernova reported strong Q2 2026 results with equipment orders more than doubling and a 15% increase in service orders, raising their backlog to $176 billion. The company highlighted significant growth in Power and Electrification segments, with Gas Power orders increasing due to high demand for HA turbines and aeroderivatives, while Electrification saw robust data center orders. 5 billion in free cash flow.

Operationally, the company is expanding production capacity to meet demand, utilizing lean processes and automation, and investing in new product development like solid-state transformers and medium-voltage uninterruptible power supplies. Management expressed optimism about continued growth and transformation in the global electricity system, emphasizing ongoing capital investments and a disciplined capital allocation strategy. Full Transcript OPERATOR As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Michael Lapidis, Vice President of Investor Relations.

Please proceed. Michael Lapidis, Vice President of Investor Relations Thank you. Welcome to GE Vernova's second quarter 2026 earnings call. I'm joined today by our CEO, Scott Strazik, and CFO, Ken Parks.

Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's Form 10-Q, press release, and the presentation slides, all of which are available on our website. Please note that unless otherwise specified, our year-over-year commentary or variances on orders, revenue, adjusted segment EBITDA, and margin discussed during our prepared remarks are on an organic basis, which includes the removal of the impact of our Prolec GE acquisition. We will make forward-looking statements about our performance.

These statements are based on how we see things today. While we may elect to update these forward-looking statements at some point in the future, we do not undertake any obligation to do so as described in our SEC filings. Actual results may differ materially due to risks and uncertainties. With that, I hand the call over to Scott.

Scott Strazik, Chief Executive Officer Thank you, Michael. Good morning, and welcome to GE Vernova's 2Q26 earnings call. Our team is executing well as the demand for our solutions in power and electrification accelerates. In 2Q, our equipment orders more than doubled and service orders grew 15%.

Our total backlog has reached $176 billion with improving margins. This is up $13 billion from last quarter and is on track to reach $200 billion in ’27. The long-cycle electric power industry is in the early stages of a multi-decade growth opportunity and we are well positioned to create substantial value. Let me walk through the demand environment across our three segments.

In Power, we continue to see strong global demand for our equipment and services. , Brazil, and Qatar to grow our total gigawatts under contract from 100 to 116 gigawatts sequentially. This includes orders for 52 heavy-duty units and 61 aeroderivatives in the quarter. More than half of the gigawatts that are now under contract are for our largest, most efficient HA turbines, units expected to run baseload and provide substantial services growth for us in the next decade.

Backlog grew from 44 to 53 gigawatts and SRAs increased from 56 to 63 gigawatts for our total gigawatts under contract. Demand remains diverse with approximately 100 customers in 26 different countries, of which approximately 80% are traditional customers and 20% are for data centers. We now expect at least 125 gigawatts under contract by the end of the year. We had a strong first half and now have agreements signed into ’31.

In the second half of the year, we expect to convert many of these SRAs into orders, driving continued growth in our backlog while achieving an important inflection point. With gigawatts in backlog greater than SRAs in ’27, we expect our combined gigawatts under contract to continue to grow. We continue to see strong pricing in gas to deliver and service our critical equipment needed to electrify the world. On the equipment side, first-half ’26 orders were priced more than 20% above 4Q25 equipment orders, reflecting the conversion of higher-priced SRAs to backlog.

In 2Q, we booked a higher dollar-per-kilowatt price in orders given a higher mix of aeroderivatives versus heavy-duty gas turbines and incremental combined cycle equipment as SRAs converted to orders. Given our large SRA balance, we would expect gas equipment orders in the second half to have a dollar per kilowatt at the higher end of the range of 10 to 20 points versus 4Q25 orders. For services, we continue to benefit from increased volume and solid pricing. This is happening not only on long-term service agreements but also on transactional orders.

We've seen transactional orders per unit continue to rise by double digits annually as customers invest in upgrades and greater scope in outages, all at higher prices. In Electrification, we continue to see robust demand from unprecedented electricity demand growth, increasing grid stability needs, and national security interests. Our backlog growth