GE Vernova
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GE Vernova (NYSE: GEV) is an American energy and electric-power equipment company headquartered in Cambridge, Massachusetts. It was created on April 2, 2024, when General Electric completed the breakup of the 132-year-old conglomerate into three independent public companies, spinning off its energy businesses as GE Vernova while launching GE Aerospace and, the year before, GE HealthCare. GE Vernova builds and services much of the hardware that generates and moves electricity: gas and steam turbines, nuclear reactors, wind turbines, and the transformers, switchgear, and grid equipment that carry power to customers. The company says its installed base helps produce roughly a quarter of the world's electricity, and it employs about 85,000 people across roughly 100 countries.[1][2][3] Since its first day of trading, GE Vernova has become one of the most closely watched beneficiaries of the surge in electricity demand from AI data centers, because the multi-year waiting list for its gas turbines and grid gear has turned turbine and transformer availability into a binding constraint on how fast new computing capacity can be powered.[4][5]
The split traces to November 9, 2021, when GE announced it would separate into three investment-grade companies focused on aviation, healthcare, and energy. GE HealthCare was spun off in January 2023. On February 29, 2024, GE's board approved the final step, the spin-off of GE Vernova, with a record date of March 19, 2024. GE shareholders received one share of GE Vernova for every four GE shares they held.[1] GE Vernova began regular-way trading on the New York Stock Exchange under the ticker "GEV" at the market open on April 2, 2024, listed at a reference price of $140.00 per share, while the remaining company became GE Aerospace and kept the "GE" ticker. In a first for the exchange, the two companies rang the NYSE opening bell together.[2][6]
The name "Vernova" combines "ver," evoking the green of verdant and verde, with "nova," meaning new, a reference to the company's positioning around both conventional and lower-carbon power. Scott Strazik, who had run GE's combined energy operations, became GE Vernova's chief executive officer.[2][3]
GE Vernova reports results across three operating segments. Power is the largest and most profitable; Electrification is the fastest-growing; and Wind has been a persistent loss-maker.
| Segment | Main businesses | 2025 notes |
|---|---|---|
| Power | Gas Power (heavy-duty and aeroderivative gas turbines), Nuclear (GE Vernova Hitachi Nuclear Energy), Steam Power, Hydro Power | Largest segment by revenue; Q4 2025 segment EBITDA margin about 16.9 percent[7] |
| Electrification | Grid Solutions (transformers, switchgear, high-voltage equipment), Power Conversion, Solar and Storage Solutions, Electrification Software | Fastest-growing segment; Q4 2025 orders about 2.5 times revenue; expanded by the Prolec GE acquisition[7][8] |
| Wind | Onshore Wind, Offshore Wind, LM Wind Power (blades) | 2025 revenue about $9.1 billion (down 6 percent); full-year segment EBITDA loss of roughly $0.6 billion[9] |
GE Vernova's gas-turbine franchise is the part of the company most directly tied to the AI buildout. Its flagship HA-class heavy-duty turbines are among the largest and most efficient on the market; the company reported on May 26, 2026 that its HA fleet had surpassed 4 million commercial operating hours, with 128 units running in 21 countries and representing about 74 gigawatts (GW) of capacity.[10]
The defining feature of the business in 2025 and 2026 was an order backlog that grew faster than the company could build. Heavy-duty gas turbines take years to manufacture, so utilities, independent power producers, and hyperscale data-center developers compete for limited production "slots." GE Vernova tracks both firm equipment backlog and earlier-stage "slot reservation agreements," and the combined figure climbed steeply through 2025 into 2026.[4][5]
| Period | Gas power equipment backlog plus slot reservations |
|---|---|
| Q1 2025 | About 29 GW backlog plus 21 GW reservations (about 50 GW combined)[5] |
| Q3 2025 | Grew from 55 to 62 GW |
| Q4 2025 | Grew from 62 to 83 GW (18 GW booked in the quarter)[7] |
| Q1 2026 | Grew from 83 to 100 GW (21 GW of new agreements)[8] |
| Year-end 2026 target | At least 110 GW[8] |
By the first quarter of 2026, the roughly 100 GW under contract split into about 44 GW of firm backlog and 56 GW of slot reservations. Management said roughly 80 percent of that volume was tied to traditional utility, independent power producer, and industrial customers, with the remaining 20 percent explicitly tied to data-center load.[5][8] CEO Scott Strazik told investors he expected turbine reservations to be effectively sold out through 2030 by the end of 2026, and described continuing "volume agreement" talks with hyperscalers that could extend visibility into ordering through 2035.[4] Because slots are scarce, GE Vernova reported that pricing on new reservations exceeded pricing on existing orders, a sign of how tight supply had become.[4]
To ease the constraint, GE Vernova is expanding capacity rather than letting the backlog simply lengthen. It is targeting about 20 GW of annualized gas-turbine output by mid-2026 and roughly 24 GW by 2028, and has announced manufacturing investments including about $160 million to expand its Greenville, South Carolina turbine plant and a proposed roughly $41 million expansion in Schenectady, New York.[4][10] The dynamic illustrates why power, not chips alone, has become a gating factor for AI: developers building plants for Microsoft, Amazon, and other operators of large data centers increasingly find that the turbines and grid equipment needed to energize a site are harder to secure than the land or the Nvidia accelerators inside it. GE Vernova is, for example, supplying turbines for gas plants that Chevron and Engine No. 1 are developing to serve Microsoft's AI computing demand.[5]
GE Vernova's nuclear unit, GE Vernova Hitachi Nuclear Energy (formerly GE Hitachi), is a joint venture with Japan's Hitachi. Its centerpiece for new build is the BWRX-300, a roughly 300-megawatt boiling-water small modular reactor that the company describes as a tenth-generation design drawing on decades of boiling-water-reactor operating experience.[11] The reactor has become a focal point of renewed interest in nuclear power as a firm, carbon-free supply for round-the-clock data-center load.
The lead project is at Ontario Power Generation's Darlington site east of Toronto. The Canadian Nuclear Safety Commission granted OPG a construction licence in April 2025, and on May 8, 2025 the Province of Ontario and OPG formally approved construction of the first unit, the first of four BWRX-300 reactors planned for the site. The companies have described it as the first commercial, grid-scale small modular reactor under construction in North America. The first unit is targeted for completion by the end of 2030.[11][12] OPG has estimated the cost at about 7.7 billion Canadian dollars for the first unit and about 20.9 billion Canadian dollars for the full four-unit, roughly 1,200-megawatt plant in 2024 dollars, figures that came in well above some earlier expectations.[12][13]
Beyond Darlington, GE Vernova Hitachi has additional BWRX-300 customers in development, including the Tennessee Valley Authority, which has pursued a construction permit for a unit at the Clinch River site in Oak Ridge, Tennessee.[13] The reactor competes with other early SMR efforts such as TerraPower and Oklo, and with existing-plant strategies pursued by operators like Constellation Energy.
Wind has been GE Vernova's problem segment. Onshore wind remains a meaningful business, but offshore wind has generated large losses. In July 2024 a blade detached from a turbine at the Vineyard Wind 1 project off Massachusetts, halting construction for months; an investigation pointed to a manufacturing deviation at an LM Wind Power blade factory in Gaspe, Quebec. GE Vernova subsequently said it would stop taking new offshore wind orders and worked to limit its exposure.[9] For full-year 2025 the Wind segment reported orders of about $7.7 billion (up 8 percent on stronger onshore demand) but revenue of about $9.1 billion (down 6 percent) and a segment EBITDA loss of roughly $0.6 billion, and the company guided to continued, though narrowing, Wind losses in 2026.[7][9]
The Electrification segment, which makes transformers, switchgear, high-voltage direct-current (HVDC) systems, and other grid equipment, became GE Vernova's growth engine as utilities and data-center developers raced to upgrade aging networks. Demand has been strong enough that the segment routinely books far more orders than it ships: in the fourth quarter of 2025 and again in the first quarter of 2026 its book-to-bill ratio ran near 2.5.[7][8]
Data-center customers in particular shifted from a side market to a core driver. In the first quarter of 2026, GE Vernova's Electrification segment booked about $2.4 billion of equipment orders to support data centers, more than the segment took from data centers in all of 2025 combined.[8] To scale the business, GE Vernova agreed in October 2025 to buy out the remaining 50 percent of Prolec GE, its long-running transformer joint venture with Mexico's Xignux, for $5.275 billion; the deal closed on February 2, 2026. Prolec GE is a major transformer maker with about 10,000 employees across seven plants, and the acquisition gave GE Vernova full control of a critical, supply-constrained product line just as transformer lead times stretched out across the industry.[14][15] The company has projected Electrification revenue of about $13.5 billion to $14.0 billion in 2026, including roughly $3 billion from Prolec GE, which would push Electrification past Wind to become its second-largest segment.[7]
GE Vernova's financial trajectory inflected sharply upward after the spin-off as orders, margins, and cash flow all rose. The table below summarizes consolidated results.
| Metric | FY 2024 | FY 2025 | Q1 2026 |
|---|---|---|---|
| Orders | $44.1B | $59.3B (up 34 percent organically) | $18.3B (up 71 percent organically)[7][8] |
| Revenue | $34.9B | $38.1B (up 9 percent) | $9.3B (up 16 percent) |
| Adjusted EBITDA | $2.0B | $3.2B (8.4 percent margin) | $0.9B (9.6 percent margin) |
| Net income | n/a | $4.9B (includes a $2.9B tax benefit) | $4.7B |
| Free cash flow | $1.7B | $3.7B | $4.8B |
| Total backlog | n/a | $150.2B | $163B |
For full-year 2025 the company generated $5.0 billion of operating cash flow, ended the year with $8.8 billion of cash, and returned $3.6 billion to shareholders. Adjusted EBITDA, the company's preferred measure of operating profitability, was the figure management highlighted; reported net income in both 2025 and the first quarter of 2026 was boosted by sizable non-operating items.[7][8]
On December 9, 2025, GE Vernova raised its multi-year outlook, lifting 2028 targets to about $52 billion of revenue (from $45 billion) and a 20 percent adjusted EBITDA margin (from 14 percent), and at least $22 billion of cumulative free cash flow over 2025 through 2028. It doubled the quarterly dividend from $0.25 to $0.50 per share and increased its share-repurchase authorization to $10 billion from $6 billion.[16] After first-quarter 2026 results on April 22, 2026, management again raised full-year 2026 guidance to roughly $44.5 billion to $45.5 billion of revenue, a 12 percent to 14 percent adjusted EBITDA margin, and $6.5 billion to $7.5 billion of free cash flow, and said it expected total backlog to reach about $200 billion by 2027.[8]
The stock was among the best performers of any large U.S. company over the period. GE Vernova reported that from its April 2, 2024 debut through December 31, 2025 its share price rose more than 360 percent, versus about 25 percent for the S&P 500 Industrials index, with the stock up roughly 99 percent in 2025 alone and a market capitalization near $176 billion at year-end 2025. Continued gains carried its market value above $250 billion by mid-2026.[17][18]
| Date | Event |
|---|---|
| November 9, 2021 | GE announces plan to split into three companies[1] |
| January 2023 | GE HealthCare spun off |
| February 29, 2024 | GE board approves GE Vernova spin-off[1] |
| April 2, 2024 | GE Vernova begins NYSE trading as "GEV"; GE Aerospace launches[2] |
| May 8, 2025 | Ontario and OPG approve construction of first BWRX-300 at Darlington[11] |
| October 21, 2025 | GE Vernova agrees to buy out Prolec GE for $5.275B[14] |
| December 9, 2025 | Multi-year outlook raised; dividend doubled; buyback expanded[16] |
| February 2, 2026 | Prolec GE acquisition closes[15] |
| April 22, 2026 | Q1 2026 results; backlog reaches $163B; gas slots hit 100 GW[8] |
GE Vernova sits at the center of the collision between AI's appetite for electricity and the physical limits of the power system. Surging AI energy consumption has made generation and grid hardware, not just semiconductors, a gating factor for new data centers, and GE Vernova supplies several of the scarcest pieces: large gas turbines, high-voltage transformers and switchgear, and, prospectively, small modular reactors. With turbine slots reserved years in advance and transformer lead times stretched, the company's order book has become a useful proxy for how quickly the AI buildout can actually be energized, and its multi-year backlog underscores that the constraint is likely to persist for years.[4][5][18]