GE Vernova Inc. Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026, and the six months ended on that date. GE Vernova Inc. operates as a global leader in the electric power industry with three reportable segments: Power (gas, nuclear, hydro), Electrification (transmission, grid systems, storage), and Wind (onshore and offshore). The reporting period reflects a realignment of business units effective January 1, 2026, and includes the full impact of the acquisition of the remaining 50% stake in Prolec GE, completed on February 2, 2026.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenues | $11,104 million | $9,111 million | $20,442 million | $17,143 million |
| Net Income (GAAP) | $649 million | $492 million | $5,398 million | $756 million |
| Diluted EPS | $2.47 | $1.86 | $19.96 | $2.77 |
| Operating Income | $653 million | $378 million | $833 million | $421 million |
| Adjusted EBITDA (Non-GAAP) | $1,250 million | $770 million | $2,146 million | $1,227 million |
| Free Cash Flow (Non-GAAP) | N/A | N/A | $9,897 million | $1,169 million |
| Cash & Equivalents | $13,120 million | $7,892 million | $13,120 million | $7,892 million |
| Long-Term Debt | $2,794 million | $265 million | $2,794 million | $265 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 22% quarter-over-quarter and 19% year-to-date, driven by organic growth in Power and Electrification and the inclusion of Prolec GE.
- Profitability Surge: Net income for the six months ended June 30, 2026, jumped to $5.4 billion from $756 million in the prior year. This increase is primarily attributable to a $4.0 billion pre-tax gain from the remeasurement of the previously held equity interest in Prolec GE upon acquisition, and a $330 million gain from the sale of the Proficy business.
- Segment Performance:
- Power: Revenues up 14% (Q2) and 13% (YTD); EBITDA up 31% (Q2) and 41% (YTD) due to higher gas turbine volumes and favorable pricing.
- Electrification: Revenues up 68% (Q2) and 65% (YTD); EBITDA up significantly due to the Prolec GE acquisition and strong demand for transformers and grid solutions.
- Wind: Revenues declined 10% (Q2) and 16% (YTD); EBITDA remained negative ($-275 million Q2, $-657 million YTD) due to lower onshore deliveries and higher offshore project costs/losses.
- Balance Sheet: Long-term borrowings increased by approximately $2.5 billion following the issuance of $2.6 billion in senior notes in February 2026 to fund the Prolec GE acquisition and general corporate purposes.
Guidance, Outlook, and Risks
- Backlog (RPO): Remaining Performance Obligation (RPO) stands at $176.3 billion as of June 30, 2026, a 17% increase from year-end 2025 and a 37% increase from June 2025. Growth was driven by Power and Electrification, partially offset by declines in Wind.
- Capital Allocation: The company repurchased $3.6 billion of common stock in the first six months of 2026 under a $10 billion authorization. Dividends of $0.50 per share were declared in Q2.
- Tariff Impact: Management estimates global tariffs will cost between $100 million and $200 million in 2026, though contractual protections may mitigate some impact.
- Offshore Wind Challenges: The company continues to face cost pressures and execution timelines in Offshore Wind, including the resolution of claims related to the Vineyard Wind project.
- Legal & Tax Contingencies: An ongoing IRS audit of legacy GE tax returns (2016-2020) could result in material indemnification obligations to GE Vernova, though amounts are not currently estimable.
Investor Verification Checklist
- Prolec GE Acquisition Impact: Verify the sustainability of earnings excluding the $4.0 billion one-time gain from the Prolec GE equity remeasurement.
- Wind Segment Losses: Monitor the trajectory of Offshore Wind contract losses and the timeline for resolving Vineyard Wind claims.
- Tariff Exposure: Assess the actual realized cost of global tariffs against the $100M-$200M estimate and the effectiveness of cost recovery mechanisms.
- Debt Servicing: Review the impact of the new $2.6 billion debt issuance on future interest expenses and liquidity.
- Legacy GE Indemnification: Track developments in the IRS audit of legacy GE tax returns for potential future liability accruals.