GE Vernova (GEV) Bernstein 42nd Annual Strategic Decisions Conference summary

Strategic overview and growth drivers

• Equipment backlog has grown 80% since April 2024 spin, now at $76 billion, driving a larger and more profitable services business into the next decade.

• Electrification is the fastest-growing segment, with backlog rising from $9 billion at end-2022 to $42 billion in Q1 2026, targeting $20 billion revenue and 22% EBITDA margin by 2028.

• Nuclear business is expanding, with the first SMR project in Ontario and contracts in the U.S. and Sweden, aiming for multi-billion revenue by 2026.

• $11 billion planned investment in R&D and CapEx over four years, supported by $10 billion cash and ongoing share buybacks totaling $4.6 billion over five to six quarters.

• Backlog has grown from $116 billion at spin to $163 billion, reflecting robust demand across all business lines.

Market dynamics and macro trends

• Current power cycle is likened to the post-WWII era, driven by economic growth, national security, and global decarbonization needs.

• Data centers account for 20-25% of backlog, but growth is also fueled by global demand in Asia and the Middle East.

• Community and legislative pushback on new projects is typical but not seen as a risk to fulfilling backlog.

• Electrification super cycle expected to continue well beyond 2028, with a $300 billion addressable market.

Capital allocation and M&A

• Capital allocation prioritizes organic investment, buybacks, and selective M&A focused on vertical integration and core business enhancement.

• Recent Prolec acquisition has already yielded $500 million in incremental orders and improved operational synergies.

• M&A will target opportunities that simplify customer experience and strengthen supply chain control, especially in electrification and SMR supply.