GE Vernova Inc. 2026 Q1 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2026. GE Vernova Inc. operates as a global leader in the electric power industry across three segments: Power (gas, nuclear, hydro), Electrification (transmission, grid systems, storage), and Wind (onshore and offshore). Effective January 1, 2026, the company realigned its business units, consolidating Steam Power into distinct nuclear, hydro, and gas units and restructuring Grid Solutions into three new units. The quarter was defined by the acquisition of the remaining 50% stake in Prolec GE and significant asset dispositions.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $9,339 million | $8,032 million |
| Operating Income | $179 million | $43 million |
| Net Income | $4,750 million | $264 million |
| Diluted EPS | $17.44 | $0.91 |
| Operating Cash Flow | $5,188 million | $1,161 million |
| Free Cash Flow (Non-GAAP) | $4,791 million | $975 million |
| Cash & Equivalents | $10,172 million | $8,107 million |
| Long-Term Debt | $2,806 million | $265 million |
| Remaining Performance Obligation (RPO) | $163,276 million | $123,438 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 16% year-over-year, driven by a 25% increase in equipment revenues and a 6% increase in services revenues. Organic revenue growth was 7%.
- Profitability Surge: Net income increased by $4.486 billion, primarily due to a $4.0 billion pre-tax gain from the remeasurement of the previously held equity interest in Prolec GE upon full acquisition, and a $330 million gain from the sale of the Proficy business.
- Segment Performance:
- Power: Revenues up 12% and EBITDA up 57% due to favorable pricing and volume in Gas Power.
- Electrification: Revenues up 61% and EBITDA up 158%, significantly boosted by the Prolec GE acquisition and strong demand for transformers and switchgear.
- Wind: Revenues down 23% and EBITDA declined to a loss of $382 million due to lower onshore deliveries, tariff impacts, and higher contract losses in offshore projects.
- Debt Issuance: The company issued $2.6 billion in senior notes (due 2031, 2036, and 2056) to fund general corporate purposes and the Prolec GE acquisition.
Guidance, Outlook, and Risks
- Outlook: Management expects the restructuring plan approved in July 2025 to be substantially complete by mid-2026, with total expected costs of approximately $225 million. The company anticipates continued demand growth in electrification and power generation.
- Tariff Impact: Global tariffs are estimated to cost between $250 million and $350 million in 2026, though contractual protections may mitigate some effects.
- Offshore Wind: The company continues to face execution pressures and cost challenges in offshore wind, specifically regarding the Vineyard Wind project, though installation is complete and commissioning is underway.
- Risks: Key risks include supply chain disruptions, geopolitical events, grid connectivity issues, and the potential for material indemnification obligations related to the separation from General Electric Company (GE), specifically regarding an ongoing IRS audit of legacy GE tax returns.
Investor Verification Checklist
- Prolec GE Integration: Verify the preliminary purchase price allocation and the impact of the $3.99 billion gain on future amortization expenses.
- Wind Segment Losses: Assess the sustainability of the Wind segment's EBITDA loss and the timeline for resolving offshore wind contract claims.
- Tariff Exposure: Monitor the actual realization of the estimated $250–$350 million tariff cost impact against contractual pass-throughs.
- GE Separation Liabilities: Review updates on the IRS audit of legacy GE tax returns and potential indemnification obligations to GE.
- Capital Allocation: Track the execution of the $10 billion share repurchase program, of which $4.6 billion has been utilized to date.