GE Vernova (GEV) Q1 2026 earnings summary

Executive summary

• Achieved a strong start to 2026 with robust orders, revenue growth, and margin expansion, driven by accelerating global electrification and demand for power solutions, supported by operational improvements and the Prolec GE acquisition.

• Orders reached $18.3B in Q1, up 71% year-over-year, with all segments contributing to growth and backlog increasing to $163B, including $5B from Prolec GE.

• Net income surged to $4.7B, primarily due to a $4.0B pre-tax gain from the Prolec GE acquisition and a $0.3B gain from the sale of the Proficy business.

• Raised full-year 2026 guidance for revenue, adjusted EBITDA, and free cash flow based on strong Q1 performance and continued momentum.

• Operating from a position of financial strength, investing in lean processes, AI, robotics, and innovation for future competitiveness.

Financial highlights

• Q1 revenue grew 16% year-over-year to $9.3B, with equipment revenue up 10% and services revenue up 4%.

• Adjusted EBITDA rose 96% year-over-year to $896M, with margin expanding to 9.6%.

• Free cash flow was $4.8B in Q1, exceeding full-year 2025 free cash flow, supported by working capital improvements.

• Equipment backlog reached $76B (up 67% year-over-year); services backlog at $87B (up 12%).

• Diluted EPS was $17.44, up from $0.91 in Q1 2025.

Outlook and guidance

• 2026 revenue guidance raised to $44.5–$45.5B, with adjusted EBITDA margin expected at 12%–14% and free cash flow guidance at $6.5–$7.5B.

• Power organic revenue growth projected at 16%–18%, with EBITDA margin of 17%–19%.

• Electrification revenue guidance raised to $14–$14.5B, EBITDA margin to 18%–20%.

• Wind segment expects low double-digit revenue decline and EBIT/EBITDA loss of ~$400M for 2026.

• Management anticipates completing restructuring by mid-2026, targeting $225M in total costs.