Prolec deal boosts GE Vernova (NYSE: GEV) profit and $176B backlog
GE Vernova reported strong Q2 2026 results with total revenues of $11.1 billion, up 22% year over year, and net income attributable to GE Vernova of $668 million. Diluted EPS was $2.47. First‑half net income reached $5.4 billion, largely driven by sizable one‑time gains.
Operating cash flow for the first half was $10.7 billion and free cash flow $9.9 billion, helped by a $13.7 billion rise in contract liabilities. Remaining performance obligations rose to $176.3 billion, reflecting demand across Power and Electrification and consolidation of Prolec GE after a $5.3 billion purchase of the remaining 50% stake.
GE Vernova issued $2.6 billion of long‑dated senior notes, ending the quarter with $13.1 billion in cash and access to $6.0 billion of committed credit facilities. Wind, particularly Offshore Wind, remained loss‑making amid project cost and execution pressures, while 2026 tariffs are estimated to cost $100–$200 million.
Positive
- Q2 2026 revenue rose to $11.1 billion, up 22% year over year, with segment EBITDA increasing to $1.43 billion from $934 million.
- Operating cash flow reached $10.7 billion and free cash flow $9.9 billion in the first half of 2026, supported by strong advance customer collections and working capital improvements.
- Remaining performance obligations grew to $176.3 billion as of June 30, 2026, providing substantial multiyear revenue visibility across the Power and Electrification segments.
Negative
- Wind segment EBITDA was negative $275 million in Q2 and $657 million year to date, reflecting continued losses and execution challenges, especially in Offshore Wind.
- 2026 earnings are heavily influenced by about $4.4 billion pre‑tax in gains on purchases and sales of business interests, reducing the proportion of recurring profit.
- Estimated 2026 tariff costs of $100–$200 million and unresolved offshore project claims introduce additional pressure on margins and future earnings.
Filing Explained
Buybacks left 266,333,581 shares outstanding on June 30, 2026, while Prolec accounting and a potential GE tax obligation remain unresolved.
A Form 10-Q is an unaudited quarterly report that updates interim financial statements, risks, and liquidity. Through
The repurchases reduced the company’s reported common-share base for existing holders; the filing does not provide an ownership-percentage calculation.
The acquisition of the remaining 50% of Prolec GE was completed on
An IRS audit of legacy General Electric consolidated tax returns could result in additional obligations allocated to GE Vernova under the tax matters agreement, but the potential amount is not reasonably estimable and no liability has been accrued.
Key Figures
Q2 2026 Total Revenues: $11,104 million
H1 2026 Net Income Attributable to GE Vernova: $5,413 million
H1 2026 Operating Cash Flow: $10,680 million
+5 more
8 metrics
Q2 2026 Total Revenues
$11,104 million
Three months ended June 30, 2026 total revenues
H1 2026 Net Income Attributable to GE Vernova
$5,413 million
Six months ended June 30, 2026
H1 2026 Operating Cash Flow
$10,680 million
Cash from operating activities for six months ended June 30, 2026
H1 2026 Free Cash Flow
$9,900 million
Free cash flow for six months ended June 30, 2026
Prolec GE Acquisition Consideration
$5,254 million
Cash consideration paid February 2, 2026 for remaining 50% stake
Senior Notes Issued February 2026
$2,600 million
Aggregate principal of 4.250% 2031, 4.875% 2036 and 5.500% 2056 notes
Remaining Performance Obligations
$176,284 million
Total RPO as of June 30, 2026
Q2 2026 Wind Segment EBITDA
$(275) million
Wind segment EBITDA for three months ended June 30, 2026
Key Terms
Remaining Performance Obligation (RPO), contractual service agreement assets, supply chain finance programs, asset retirement obligations, +1 more
5 terms
Remaining Performance Obligation (RPO) financial
"As of June 30, 2026, the aggregate amount of the contracted revenues allocated to our unsatisfied performance obligations were $176,284 million."
The remaining performance obligation (RPO) is the value of goods or services a company has contractually promised to deliver in the future but has not yet completed. Think of it as a confirmed backlog or a prepaid order book: it shows revenue that’s likely to flow in later periods and gives investors a clearer view of near-term sales visibility, revenue sustainability, and potential fulfillment or timing risks.
contractual service agreement assets financial
"Contractual service agreement assets were $5,399 million within Power as of June 30, 2026."
supply chain finance programs financial
"We facilitate voluntary supply chain finance programs with third parties for participating suppliers."
asset retirement obligations other
"We record asset retirement obligations associated with the retirement of tangible long-lived assets as a liability."
Asset retirement obligations are a company’s recorded promise to pay for dismantling, cleaning up, or restoring property when a long-lived asset is retired — for example decommissioning a plant or removing equipment. Companies estimate the future cleanup cost today and book it as a liability (and add the cost to the asset), so it affects the balance sheet, reported profits over time, and future cash needs; investors watch it like a planned bill that can reduce cash available for returns.
net investment hedges financial
"We enter into foreign exchange forwards designated as the hedging instruments in net investment hedging relationships."
A net investment hedge is a financial step a company takes to protect the reported value of its ownership in foreign subsidiaries from swings in exchange rates. By using derivatives or foreign‑currency borrowings to offset translation gains or losses, the company reduces how much its balance sheet and reported equity jump around when currencies move — like locking a price tag on a foreign store so its value in the home currency stays steadier for investors.
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FAQ
How did GE Vernova (GEV) perform financially in Q2 2026?
GE Vernova reported Q2 2026 revenues of $11.1 billion and net income attributable to GE Vernova of $668 million, with diluted EPS of $2.47. Results improved versus 2025, aided by higher segment EBITDA and contributions from recent portfolio actions.
What was GE Vernova (GEV) net income and EPS for the first half of 2026?
For the six months ended June 30, 2026, GE Vernova generated net income attributable to GE Vernova of $5.413 billion and diluted EPS of $19.96. These figures include large one‑time gains related to acquisitions and business disposals recorded in other income.
How much cash flow did GE Vernova (GEV) generate in the first half of 2026?
GE Vernova produced $10.68 billion of cash from operating activities and $9.9 billion of free cash flow in the first half of 2026. Cash generation benefited from increased contract liabilities, improved working capital, and strong advance collections on equipment and service contracts.
What is GE Vernova (GEV) Remaining Performance Obligation (RPO)?
As of June 30, 2026, GE Vernova’s RPO totaled $176.284 billion, comprising $87.821 billion of equipment and $88.463 billion of services. This backlog reflects long‑term contracted revenues across Power, Electrification, and Wind, including contributions from the Prolec GE acquisition.
What are the key details of GE Vernova (GEV) acquiring Prolec GE?
On February 2, 2026, GE Vernova acquired the remaining 50% of Prolec GE for $5.254 billion in cash, recognizing $5.313 billion of goodwill. A remeasurement of the prior stake produced a $3.992 billion pre‑tax gain, and Prolec GE is now reported within Electrification.
How is GE Vernova (GEV) funding growth and managing debt in 2026?
GE Vernova issued $2.6 billion of senior notes maturing in 2031, 2036, and 2056 and has $6.0 billion of committed credit facilities. Long‑term borrowings rose to $2.794 billion, while cash, cash equivalents, and restricted cash totaled $13.12 billion at June 30, 2026.
What challenges is GE Vernova (GEV) facing in its Wind segment?
The Wind segment posted negative EBITDA of $275 million in Q2 and $657 million year to date, with Offshore Wind pressured by project costs, execution timelines, and claim negotiations on projects such as Vineyard Wind, while Onshore Wind is seeing lower orders in North America.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended June 30, 2026
OR
For the transition period from ____ to ____
Commission file number 001-41966
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
(Address of principal executive offices) | (Zip Code) | |||
(617 ) 674-7555
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to
Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
☑ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
There were 266,333,581 shares of common stock with a par value of $0.01 per share outstanding at June 30, 2026.
TABLE OF CONTENTS
Page | |||||
Forward-Looking Statements | 3 | ||||
About GE Vernova | 4 | ||||
Part I | 5 | ||||
Item 1. Financial Statements and Supplementary Data | 5 | ||||
Consolidated Statement of Income (Loss) | 5 | ||||
Consolidated Statement of Financial Position | 6 | ||||
Consolidated Statement of Cash Flows | 7 | ||||
Consolidated Statement of Comprehensive Income (Loss) | 8 | ||||
Consolidated Statement of Changes in Equity | 9 | ||||
Note | 1 | Organization and Basis of Presentation | 11 | ||
Note | 2 | Summary of Significant Accounting Policies | 11 | ||
Note | 3 | Assets and Liabilities Held for Sale | 11 | ||
Note | 4 | Current and Long-Term Receivables | 12 | ||
Note | 5 | Inventories, Including Deferred Inventory Costs | 12 | ||
Note | 6 | Property, Plant, and Equipment | 12 | ||
Note | 7 | Leases | 13 | ||
Note | 8 | Acquisitions, Goodwill, and Other Intangible Assets | 13 | ||
Note | 9 | Contract and Other Deferred Assets & Contract Liabilities and Deferred Income | 14 | ||
Note | 10 | Current and All Other Assets | 15 | ||
Note | 11 | Equity Method Investments | 15 | ||
Note | 12 | Accounts Payable and Equipment Project Payables | 15 | ||
Note | 13 | Postretirement Benefit Plans | 15 | ||
Note | 14 | Long-term Borrowings | 16 | ||
Note | 15 | Current and All Other Liabilities | 17 | ||
Note | 16 | Income Taxes | 17 | ||
Note | 17 | Accumulated Other Comprehensive Income (Loss) (AOCI) and Common Stock | 17 | ||
Note | 18 | Earnings Per Share Information | 18 | ||
Note | 19 | Other Income (Expense) – Net | 18 | ||
Note | 20 | Financial Instruments | 18 | ||
Note | 21 | Variable Interest Entities (VIEs) | 20 | ||
Note | 22 | Commitments, Guarantees, Product Warranties, and Other Loss Contingencies | 20 | ||
Note | 23 | Restructuring Charges and Separation Costs | 21 | ||
Note | 24 | Segment Information | 22 | ||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 25 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 37 | ||||
Item 4. Controls and Procedures | 37 | ||||
Part II | 38 | ||||
Item 1. Legal Proceedings | 38 | ||||
Item 1A. Risk Factors | 38 | ||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 38 | ||||
Item 3. Defaults Upon Senior Securities | 38 | ||||
Item 4. Mine Safety Disclosures | 38 | ||||
Item 5. Other Information | 38 | ||||
Item 6. Exhibits | 39 | ||||
Signatures | 40 | ||||
2026 2Q FORM 10-Q 3
FORWARD-LOOKING STATEMENTS. This quarterly report of GE Vernova Inc. (the Company, GE Vernova, our, we, or us) contains
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are
subject to risks and uncertainties. These statements may include words such as “believe”, “expect”, “guidance”, “outlook”, “anticipate”,
“intend”, “plan”, “estimate”, “will”, “may”, and negatives or derivatives of these or similar expressions. These forward-looking statements
may include, among others, statements about our future performance, anticipated growth, and expectations in our business; the energy
transition; the demand for our products and services; our technologies and ability to innovate, anticipate, and address customer demands;
our ability to increase production capacity, efficiencies, and quality; our underwriting and risk management; the estimated impact of tariffs;
our product quality and costs; our cost management efforts; tax incentives; customer orders and commitments; project execution and
timelines; our actual and planned investments, including in research and development, capital expenditures, joint ventures, and other
collaborations with third parties; our ability to meet our sustainability goals and targets; levels of global infrastructure spending; government
policies; our expected cash generation and management; our lean operating model; our capital allocation framework, including organic and
inorganic investments, share repurchases, and dividends; our restructuring programs; disputes, litigation, arbitration, and governmental
proceedings involving us; the sufficiency and expected uses of our cash, liquidity, and financing arrangements; and our credit ratings.
Forward-looking statements reflect our current expectations, are based on judgments and assumptions, are inherently uncertain, and are
subject to risks, uncertainties, and other factors, which could cause our actual results, performance, or achievements to differ materially
from current expectations. Some of the risks, uncertainties, and other factors that may cause actual results to differ materially from those
expressed or implied by forward-looking statements include the following:
•Quality issues or safety failures among our products, solutions, or services;
•Significant supply chain or logistics disruptions, including cost or availability of materials or components;
•Disruptions or capacity constraints at our manufacturing or operating facilities;
•Our ability to manage our costs and achieve anticipated cost savings;
•Our ability to execute and estimate long-term service obligations;
•Our ability to successfully compete;
•Our ability to innovate and successfully commercialize new technologies and manage our product cycles;
•Achieving expected benefits from strategic transactions, joint ventures, and other third-party collaborations;
•Issues with grid connectivity or our customers’ ability to sell generated electricity;
•Our ability to manage customer and counterparty relationships and contracts;
•Our ability to maintain our investment grade credit ratings;
•Our access to capital or credit markets or other financing on acceptable terms;
•Decarbonization and energy-transition dynamics;
•Changes in energy, environmental, and tax laws and policies;
•Challenges of operating globally, including complex legal, regulatory, and compliance risks;
•Natural disasters, physical effects of climate change, pandemics, and other emergencies;
•Geopolitical events;
•Our ability to meet sustainability expectations, standards, and goals;
•International trade policies;
•Our ability to obtain, maintain, and comply with approvals, licenses, and permits;
•Our ability to comply with laws and regulations and related compliance costs;
•Impacts from claims, litigation, regulatory proceedings, and enforcement actions;
•Our ability to attract and retain highly qualified personnel and impacts from any labor disputes or actions;
•Our ability to secure, deploy, and protect our intellectual property rights and defend against third-party claims;
•Foreign currency impacts;
•Our ability to realize the benefits from our separation from, and our obligations to, General Electric Company;
•Our capital allocation plans, including the timing and amount of any dividends, share repurchases, acquisitions, organic
investments, and other priorities;
•The price, availability, volatility, and trading volumes of our common stock;
•The amount and timing of our cash flows and earnings;
•The impact of cybersecurity or data security incidents; and
•Other changes in macroeconomic and market conditions and volatility.
These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking
statements, and these and other factors are more fully discussed elsewhere in this Quarterly Report on Form 10-Q and in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2025, including in Item 1A. "Risk Factors" and Item 7. "Management's
Discussion and Analysis of Financial Condition and Results of Operations," as may be updated from time to time in our Securities and
Exchange Commission (SEC) filings and as posted on our website at www.gevernova.com/investors/fls. We do not undertake any
obligation to update or revise our forward-looking statements except as may be required by law or regulation.
2026 2Q FORM 10-Q 4
ABOUT GE VERNOVA. GE Vernova Inc. (the Company, GE Vernova, our, we, or us) is a global leader in the electric power industry,
with products and services that generate, transfer, orchestrate, convert, and store electricity. We design, manufacture, deliver, and service
technologies to create a more reliable, secure, and sustainable electric power system, enabling electrification and decarbonization,
underpinning the progress and prosperity of the communities we serve. We are a purpose-built company, positioned with a unique scope
and scale of integrated solutions to help accelerate the energy transition, while servicing and growing our installed base and strengthening
our own profitability and stockholder returns. We have a strong history of innovation, which is a key strength enabling us to meet our
customers’ needs.
The breadth of our portfolio also enables us to provide an extensive range of technologies and integrated solutions to help advance our
customers’ energy and sustainability goals. Our installed base generates approximately 25% of the world’s electricity. We build, modernize,
and service power systems to help our customers electrify their operations and economies, meet power demand growth, improve system
reliability and resiliency, and navigate the energy transition through limiting and reducing emissions. The portfolio of equipment and
services that we deliver is diversified across technology types and is adaptable based on electric power market conditions and demand.
We report three business segments that are aligned with the nature of equipment and services they provide, specifically Power,
Electrification, and Wind. Within our segments, Power includes gas, nuclear, and hydro technologies, providing a critical foundation of
dispatchable, flexible, stable, and reliable power. Electrification includes power transmission, grid systems integration, power conversion
and storage, and grid automation and software technologies required for the transmission, distribution, conversion, storage, and
orchestration of electricity from point of generation to point of consumption. Our Wind segment includes our wind generation technologies,
inclusive of onshore and offshore wind turbines and blades.
Our corporate headquarters is located at 58 Charles Street, Cambridge, Massachusetts 02141, and our telephone number is (617)
674-7555. Our website address is www.gevernova.com. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934, as amended (the Exchange Act), are available, without charge, on our website, as soon as reasonably practicable after they are
electronically filed with, or furnished to, the SEC. Information contained on, or that can be accessed through, our website is not part of, and
is not incorporated into, this Quarterly Report on Form 10-Q or any other filings we make with the SEC. Our website at
www.gevernova.com/investors contains a significant amount of information about GE Vernova, including financial and other information for
investors. We encourage investors to visit this website from time to time, as information is updated, and new information is posted.
2026 2Q FORM 10-Q 5
PART I
ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
CONSOLIDATED STATEMENT OF INCOME (LOSS) (UNAUDITED) | |||||
Three months ended June 30 | Six months ended June 30 | ||||
(In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |
Sales of equipment | $ | $ | $ | $ | |
Sales of services | |||||
Total revenues | |||||
Cost of equipment | |||||
Cost of services | |||||
Gross profit | |||||
Selling, general, and administrative expenses | |||||
Research and development expenses | |||||
Operating income (loss) | |||||
Interest and other financial income (charges) – net | |||||
Non-operating benefit income | |||||
Other income (expense) – net (Note 19) | |||||
Income (loss) before income taxes | |||||
Provision (benefit) for income taxes (Note 16) | |||||
Net income (loss) | |||||
Net loss (income) attributable to noncontrolling interests | |||||
Net income (loss) attributable to GE Vernova | $ | $ | $ | $ | |
Earnings (loss) per share attributable to GE Vernova (Note 18): | |||||
Basic | $ | $ | $ | $ | |
Diluted | $ | $ | $ | $ | |
Weighted-average number of common shares outstanding: | |||||
Basic | |||||
Diluted | |||||
2026 2Q FORM 10-Q 6
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||
(In millions, except share and per share amounts) | June 30, 2026 | December 31, 2025 |
Cash, cash equivalents, and restricted cash | $ | $ |
Current receivables – net (Note 4) | ||
Inventories, including deferred inventory costs (Note 5) | ||
Current contract assets (Note 9) | ||
All other current assets (Note 10) | ||
Assets held for sale (Note 3) | ||
Current assets | ||
Property, plant, and equipment – net (Note 6) | ||
Goodwill (Note 8) | ||
Intangible assets – net (Note 8) | ||
Contract and other deferred assets (Note 9) | ||
Equity method investments (Note 11) | ||
Deferred income taxes (Note 16) | ||
All other assets (Note 10) | ||
Total assets | $ | $ |
Accounts payable and equipment project payables (Note 12) | $ | $ |
Contract liabilities and deferred income (Note 9) | ||
All other current liabilities (Note 15) | ||
Liabilities held for sale (Note 3) | ||
Current liabilities | ||
Long-term borrowings (Note 14) | ||
Deferred income taxes (Note 16) | ||
Non-current compensation and benefits | ||
All other liabilities (Note 15) | ||
Total liabilities | ||
Commitments and contingencies (Note 22) | ||
Common stock, par value $ | ||
Additional paid-in capital | ||
Retained earnings | ||
Treasury common stock, December 31, 2025, respectively | ( | ( |
Accumulated other comprehensive income (loss) – net attributable to GE Vernova (Note 17) | ( | ( |
Total equity attributable to GE Vernova | ||
Noncontrolling interests | ||
Total equity | ||
Total liabilities and equity | $ | $ |
2026 2Q FORM 10-Q 7
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) | Six months ended June 30 | |
(In millions) | 2026 | 2025 |
Net income (loss) | $ | $ |
Adjustments to reconcile net income (loss) to cash from (used for) operating activities | ||
Depreciation and amortization of property, plant, and equipment (Note 6) | ||
Amortization of intangible assets (Note 8) | ||
(Gains) losses on purchases and sales of business interests | ( | ( |
Principal pension plans – net (Note 13) | ( | ( |
Other postretirement benefit plans – net (Note 13) | ( | ( |
Provision (benefit) for income taxes (Note 16) | ||
Cash recovered (paid) during the year for income taxes | ( | ( |
Changes in operating working capital: | ||
Decrease (increase) in current receivables | ( | |
Decrease (increase) in inventories, including deferred inventory costs | ( | ( |
Decrease (increase) in current contract assets | ( | ( |
Increase (decrease) in accounts payable and equipment project payables | ||
Increase (decrease) in contract liabilities and current deferred income | ||
All other operating activities | ( | ( |
Cash from (used for) operating activities | ||
Additions to property, plant, and equipment and internal-use software | ( | ( |
Dispositions of property, plant, and equipment | ||
Purchases of and contributions to equity method investments | ( | ( |
Sales of and distributions from equity method investments | ||
Net cash paid for principal businesses purchased | ( | ( |
Proceeds from principal business dispositions | ||
All other investing activities | ||
Cash from (used for) investing activities | ( | ( |
Newly issued debt (maturities longer than 90 days) | ||
Dividends paid to stockholders | ( | ( |
Purchases of common stock for treasury | ( | ( |
All other financing activities | ( | ( |
Cash from (used for) financing activities | ( | ( |
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash | ( | |
Increase (decrease) in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale | ( | |
Less: Net increase (decrease) in cash classified within assets held for sale | ( | |
Increase (decrease) in cash, cash equivalents, and restricted cash | ( | |
Cash, cash equivalents, and restricted cash at beginning of year | ||
Cash, cash equivalents, and restricted cash as of June 30 | $ | $ |
2026 2Q FORM 10-Q 8
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||
Three months ended June 30 | Six months ended June 30 | ||||
(In millions) | 2026 | 2025 | 2026 | 2025 | |
Net income (loss) attributable to GE Vernova | $ | $ | $ | $ | |
Net loss (income) attributable to noncontrolling interests | |||||
Net income (loss) | $ | $ | $ | $ | |
Other comprehensive income (loss): | |||||
Currency translation adjustments – net of taxes | ( | ( | |||
Benefit plans – net of taxes | ( | ( | ( | ( | |
Cash flow hedges – net of taxes | ( | ( | |||
Other comprehensive income (loss) | $( | $ | $( | $ | |
Comprehensive income (loss) | $ | $ | $ | $ | |
Comprehensive loss (income) attributable to noncontrolling interests | |||||
Comprehensive income (loss) attributable to GE Vernova | $ | $ | $ | $ | |
2026 2Q FORM 10-Q 9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) | ||||||||
Common stock | ||||||||
(In millions) | Common shares outstanding | Par value | Additional paid-in capital | Retained earnings | Treasury common stock | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity |
Balances as of April 1, 2026 | $ | $ | $ | $( | $( | $ | $ | |
Issuance of shares in connection with equity awards | — | — | ( | — | — | — | — | ( |
Share-based compensation expense | — | — | — | — | — | — | ||
Dividends declared ($ | — | — | — | ( | — | — | — | ( |
Repurchase of common stock | ( | — | — | — | ( | — | — | ( |
Net income (loss) | — | — | — | — | — | ( | ||
Currency translation adjustments – net of taxes | — | — | — | — | — | ( | ( | ( |
Benefit plans – net of taxes | — | — | — | — | — | ( | — | ( |
Cash flow hedges – net of taxes | — | — | — | — | — | ( | — | ( |
Changes attributable to noncontrolling interests | — | — | — | — | — | — | ||
Balances as of June 30, 2026 | $ | $ | $ | $( | $( | $ | $ | |
Balances as of April 1, 2025 | $ | $ | $ | $( | $( | $ | $ | |
Issuance of shares in connection with equity awards | — | — | ( | — | — | — | — | ( |
Share-based compensation expense | — | — | — | — | — | — | ||
Dividends declared ($ | — | — | — | ( | — | — | — | ( |
Repurchase of common stock | ( | — | — | — | ( | — | — | ( |
Net income (loss) | — | — | — | — | — | ( | ||
Currency translation adjustments – net of taxes | — | — | — | — | — | |||
Benefit plans – net of taxes | — | — | — | — | — | ( | — | ( |
Cash flow hedges – net of taxes | — | — | — | — | — | — | ||
Changes attributable to noncontrolling interests | — | — | — | — | — | — | ||
Balances as of June 30, 2025 | $ | $ | $ | $( | $( | $ | $ | |
2026 2Q FORM 10-Q 10
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) | ||||||||
Common stock | ||||||||
(In millions) | Common shares outstanding | Par value | Additional paid-in capital | Retained earnings | Treasury common stock | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity |
Balances as of January 1, 2026 | $ | $ | $ | $( | $( | $ | $ | |
Issuance of shares in connection with equity awards | — | ( | — | — | — | — | ( | |
Share-based compensation expense | — | — | — | — | — | — | ||
Dividends declared ($ | — | — | — | ( | — | — | — | ( |
Repurchase of common stock | ( | — | — | — | ( | — | — | ( |
Net income (loss) | — | — | — | — | — | ( | ||
Currency translation adjustments – net of taxes | — | — | — | — | — | ( | — | ( |
Benefit plans – net of taxes | — | — | — | — | — | ( | ( | |
Cash flow hedges – net of taxes | — | — | — | — | — | ( | — | ( |
Changes attributable to noncontrolling interests | — | — | — | — | — | — | ||
Balances as of June 30, 2026 | $ | $ | $ | $( | $( | $ | $ | |
Balances as of January 1, 2025 | $ | $ | $ | $( | $( | $ | $ | |
Issuance of shares in connection with equity awards | — | ( | — | — | — | — | ( | |
Share-based compensation expense | — | — | — | — | — | — | ||
Dividends declared ($ | — | — | — | ( | — | — | — | ( |
Repurchase of common stock | ( | — | — | — | ( | — | — | ( |
Net income (loss) | — | — | — | — | — | ( | ||
Currency translation adjustments – net of taxes | — | — | — | — | — | |||
Benefit plans – net of taxes | — | — | — | — | — | ( | ( | |
Cash flow hedges – net of taxes | — | — | — | — | — | — | ||
Changes attributable to noncontrolling interests | — | — | — | — | — | — | ||
Balances as of June 30, 2025 | $ | $ | $ | $( | $( | $ | $ | |
2026 2Q FORM 10-Q 11
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION
Organization. GE Vernova Inc. (the Company, GE Vernova, our, we, or us) is a global leader in the electric power industry, with products
and services that generate, transfer, orchestrate, convert, and store electricity. We design, manufacture, deliver, and service technologies
to create a more reliable, secure, and sustainable electric power system, enabling electrification and decarbonization, underpinning the
progress and prosperity of the communities we serve. We report our financial results across three
•Our Power segment includes the design, manufacture, and servicing of gas, nuclear, and hydro technologies, providing a critical
foundation of dispatchable, flexible, stable, and reliable power.
•Our Electrification segment includes power transmission, grid systems integration, power conversion and storage, and grid
automation and software technologies required for the transmission, distribution, conversion, storage, and orchestration of
electricity from point of generation to point of consumption.
•Our Wind segment includes our wind generation technologies, inclusive of onshore and offshore wind turbines and blades.
•Effective January 1, 2026, the Company realigned the reporting of certain of its business units. Historical financial information
presented within this report conforms to the new business unit structure within the Power, Electrification, and Wind segments.
◦Within our Power segment, our Steam Power business unit was realigned into Nuclear Power, Hydro Power, and Gas
Power. In addition, a component of our former Electrification Software business unit was realigned into Gas Power.
◦Within our Electrification segment, we revised our Grid Solutions business unit into three new business units, Power
Transmission, Grid Systems Integration, and Grid Automation & Software. In addition, a component of our former
Electrification Software business unit was realigned into Grid Automation & Software and another component was
realigned into Gas Power within our Power segment.
◦Within our Wind segment, we combined our Onshore Wind and LM Wind Power business units into Onshore Wind.
regulations of the Securities and Exchange Commission (SEC) applicable to interim financial statements. Accordingly, certain information
related to our significant accounting policies and note disclosures normally included in financial statements prepared in accordance with
U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted. These unaudited consolidated financial
statements should be read in conjunction with our audited consolidated and combined financial statements, corresponding notes, and
significant accounting policies in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. We have reclassified
certain prior year amounts to conform to the current year’s presentation. The information presented in tables throughout the notes is
presented in millions of U.S. dollars unless otherwise stated. Certain columns and rows may not add due to the use of rounded numbers.
Company have been eliminated in the consolidated financial statements.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
management to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions
which affect reported amounts and related disclosures in the consolidated financial statements. We believe these assumptions to be
reasonable under the circumstances, and although our current estimates contemplate current and expected future conditions, as
applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of
operations, financial position, and cash flows.
Estimates are used for, but are not limited to, determining revenues from contracts with customers, recoverability of inventory, long-lived
assets and investments, valuation of goodwill and intangible assets, useful lives used in depreciation and amortization, income taxes and
related valuation allowances, accruals for contingencies including legal, indemnifications, product warranties, and environmental, actuarial
assumptions used to determine costs of pension and postretirement benefits, valuation and recoverability of receivables, valuation of
See Note 2 in the Notes to our audited consolidated and combined financial statements in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2025, for further information on our significant accounting policies.
NOTE 3. ASSETS AND LIABILITIES HELD FOR SALE. During the first quarter of 2026, we completed the sale of the Proficy
manufacturing software business (Proficy) within our Grid Automation & Software business. In connection with the disposition, we received
net cash proceeds of $598 million, subject to customary working capital and other post-close adjustments. As a result, we recognized a pre-
tax gain of $330 million (after-tax gain of $210 million), recorded in Other income (expense) - net in our Consolidated Statement of Income
(Loss). See Note 19 for further information.
Additionally, during the first quarter of 2026, we completed the sale of the issued and outstanding membership interests of Linden VFT LLC,
a merchant transmission facility within our Gas Power business. In connection with the disposition, we received net cash proceeds of
$138 million, subject to customary working capital and other post-close adjustments. As a result, we recognized a pre-tax gain of $1 million
(after-tax gain of $1 million), recorded in Other income (expense) - net in our Consolidated Statement of Income (Loss).
2026 2Q FORM 10-Q 12
summarized as follows:
ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE | June 30, 2026 | December 31, 2025 |
Property, plant, and equipment - net | $ | $ |
Goodwill | ||
Other assets | ||
Assets held for sale | $ | $ |
Other liabilities | $ | $ |
Liabilities held for sale | $ | $ |
NOTE 4. CURRENT AND LONG-TERM RECEIVABLES
CURRENT RECEIVABLES – NET | June 30, 2026 | December 31, 2025 |
Customer receivables | $ | $ |
Non-income based tax receivables | ||
Supplier advances and other receivables | ||
Other receivables | $ | $ |
Allowance for credit losses | ( | ( |
Total current receivables – net | $ | $ |
Activity in the allowance for credit losses related to current receivables for the six months ended June 30, 2026 and 2025 consists of the
following:
ALLOWANCE FOR CREDIT LOSSES | 2026 | 2025 |
Balance as of January 1 | $ | $ |
Net additions (releases) charged to costs and expenses | ( | |
Write-offs, net | ( | ( |
Foreign exchange and other | ||
Balance as of June 30 | $ | $ |
Sales of customer receivables. From time to time, the Company sells current or long-term receivables to third parties in response to
customer-sponsored requests or programs, to facilitate sales, or for risk mitigation purposes. The Company sold current customer
receivables to third parties and subsequently collected $639 million and $553 million in the six months ended June 30, 2026 and 2025,
respectively. Transactions under these arrangements are accounted for as sales, and the sold receivables are removed from the
Company's balance sheet. The Company maintains no continuing involvement with respect to the receivables being transferred.
LONG-TERM RECEIVABLES | June 30, 2026 | December 31, 2025 |
Long-term customer receivables | $ | $ |
Supplier advances | ||
Non-income based tax receivables | ||
Other receivables | ||
Allowance for credit losses | ( | ( |
Total long-term receivables – net | $ | $ |
NOTE 5. INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS
June 30, 2026 | December 31, 2025 | |
Raw materials and work in process | $ | $ |
Finished goods | ||
Deferred inventory costs(a) | ||
Inventories, including deferred inventory costs | $ | $ |
(a) Represents cost deferral for shipped goods (such as components for wind turbine assemblies in our Wind segment) and labor and
overhead costs on time and material service contracts (primarily originating in our Power segment) and other costs where the criteria for
NOTE 6. PROPERTY, PLANT, AND EQUIPMENT
June 30, 2026 | December 31, 2025 | |
Original cost | $ | $ |
Less: Accumulated depreciation and amortization | ( | ( |
Right-of-use operating lease assets | ||
Property, plant, and equipment – net | $ | $ |
2026 2Q FORM 10-Q 13
Depreciation and amortization related to property, plant, and equipment was $182 million and $145 million in the three months ended and
$348 million and $294 million in the six months ended June 30, 2026 and 2025, respectively.
NOTE 7. LEASES. Our operating lease liabilities, included in All other current liabilities and All other liabilities in our Consolidated
Statement of Financial Position, were $871 million and $843 million as of June 30, 2026 and December 31, 2025, respectively. Expense
related to our operating lease portfolio, primarily from our long-term fixed leases, was $74 million and $63 million for the three months
ended and $142 million and $116 million for the six months ended June 30, 2026 and 2025, respectively. Our finance lease liabilities,
included in All other current liabilities and Long-term borrowings in our Consolidated Statement of Financial Position, were $295 million and
NOTE 8. ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS
Acquisitions. On February 2, 2026, GE Vernova completed the acquisition of the remaining 50 % stake of Prolec GE, our former
unconsolidated joint venture with Xignux, in exchange for cash consideration of $5,254 million. Prolec GE is an electric industry leader in
North America, with approximately 10,000 employees across seven manufacturing sites in the Americas, including five in the U.S. It
produces a wide variety of transformers and transformer components for the generation, transmission, and distribution of electricity,
complemented by its broad transformer services offering. The acquisition increases our ability to serve the North American transformer
market. Net assets and results of operations of Prolec GE are included in our results commencing on February 2, 2026 and are reported
within the Electrification segment. As a result of this acquisition, we remeasured our previously held equity interest to fair value, with the
resulting pre-tax gain of $3,992 million recognized within Other income (expense) – net in our Consolidated Statement of Income (Loss)
during the first quarter of 2026 and was determined by using the implied total equity value from the transaction price, adjusted for an
assumed control premium. Pro forma results of operations are not presented because the acquisition is not material to the Company’s
consolidated results of operations for the three and six months ended June 30, 2026 and 2025, respectively.
liabilities assumed based upon their estimated fair values at the date of acquisition:
Cash consideration transferred | $ |
Fair value of previously held | |
Total preliminary purchase consideration | $ |
Current assets | $ |
Intangible assets | |
Other non-current assets | |
Current liabilities | ( |
Non-current liabilities | ( |
Total identifiable net assets acquired | $ |
Goodwill | |
Total preliminary purchase consideration | $ |
Goodwill is calculated as the excess of the purchase consideration over the estimated fair value of net assets acquired and primarily
represents the value of the assembled workforce along with expected synergies from integrating Prolec GE’s operations with the
Company’s operations. The goodwill is recorded in our Electrification segment and approximately $400 million of the goodwill is expected to
be deductible for tax purposes.
We determined the fair value of assets acquired and liabilities assumed using available market information and various valuation methods
that require judgment related to estimates. The purchase accounting related to the acquisition, including the valuation of tangible and
intangible assets, is preliminary and likely to change in future reporting periods. During the three months ended June 30, 2026, we
recognized measurement period adjustments to the identified net assets acquired with an offsetting $160 million reduction to goodwill. We
will complete our post-closing procedures and purchase price allocation as soon as practicable but no later than the first quarter of 2027.
See Notes 9, 11, and 19 for further information.
as follows:
Weighted-average useful lives (in years) | Total | |
Customer related | $ | |
Patents and technology | ||
Capitalized software | ||
Trademarks and other | ||
Total identifiable intangible assets acquired | $ |
The fair values of the customer related and trademarks and other intangible assets were primarily determined using the multi-period excess
earnings method, and the fair values of the patents and technology intangible assets were valued using the relief-from-royalty method.
Revenue and income (loss) before income taxes of Prolec GE were $859 million and $(57 ) million for the three months ended June 30,
2026, respectively, and from the acquisition date through June 30, 2026 were $1,344 million and $(166 ) million, respectively. The income
2026 2Q FORM 10-Q 14
(loss) before income taxes includes the impact of inventory step-up amortization, intangible asset amortization, and integration
costs. Acquisition-related costs totaled $4 million and $44 million for the three and six months ended June 30, 2026, respectively, and are
included in Selling, general, and administrative expenses in our Consolidated Statement of Income (Loss).
GOODWILL | Power | Electrification | Wind | Total |
Balance as of January 1, 2026 | $ | $ | $ | $ |
Acquisitions | ||||
Currency exchange and other | ( | ( | ||
Balance as of June 30, 2026 | $ | $ | $ | $ |
We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or
circumstances between annual impairment testing dates. In the six months ended June 30, 2026, we did not identify any reporting units
that were impaired.
Intangible assets. All intangible assets are subject to amortization. Intangible assets increased $3,780 million during the six months ended
June 30, 2026, primarily as a result of the acquisition of Prolec GE, partially offset by amortization. Amortization expense was $236 million
and $60 million for the three months ended and $411 million and $116 million for the six months ended June 30, 2026 and 2025,
respectively.
NOTE 9. CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME
Contract assets reflect revenue recognized on contracts in excess of billings based on contractual terms. Contract liabilities primarily
represent cash received from customers under ordinary commercial payment terms in advance of delivery of equipment orders or servicing
of customers’ installed base.
Contract and other deferred assets increased $304 million in the six months ended June 30, 2026 primarily due to the timing of revenue
recognition ahead of billing milestones on equipment and other service agreements. Contract liabilities and deferred income increased
$14,088 million in the six months ended June 30, 2026 primarily due to new collections received in excess of revenue recognition and as a
result of the acquisition of Prolec GE. Net contractual service agreements increased primarily due to revenues recognized of $2,689 million,
partially offset by billings of $2,392 million and net unfavorable changes in estimated profitability of $218 million.
Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $7,512 million and $7,074
million for the six months ended June 30, 2026 and 2025, respectively.
CONTRACT AND OTHER DEFERRED ASSETS | ||||
June 30, 2026 | Power | Electrification | Wind | Total |
Contractual service agreement assets | $ | $ | $ | $ |
Equipment and other service agreement assets | ||||
Current contract assets | $ | $ | $ | $ |
Non-current contract and other deferred assets(a) | ||||
Total contract and other deferred assets | $ | $ | $ | $ |
December 31, 2025 | Power | Electrification | Wind | Total |
Contractual service agreement assets | $ | $ | $ | $ |
Equipment and other service agreement assets | ||||
Current contract assets | $ | $ | $ | $ |
Non-current contract and other deferred assets(a) | ||||
Total contract and other deferred assets | $ | $ | $ | $ |
(a) Primarily represents amounts due from customers at Gas Power for the sale of services upgrades, which we collect through incremental
fixed or usage-based fees from servicing the equipment under contractual service agreements.
CONTRACT LIABILITIES AND DEFERRED INCOME | ||||
June 30, 2026 | Power | Electrification | Wind | Total |
Contractual service agreement liabilities | $ | $ | $ | $ |
Equipment and other service agreement liabilities | ||||
Contract liabilities and current deferred income | $ | $ | $ | $ |
Non-current deferred income | ||||
Total contract liabilities and deferred income | $ | $ | $ | $ |
December 31, 2025 | Power | Electrification | Wind | Total |
Contractual service agreement liabilities | $ | $ | $ | $ |
Equipment and other service agreement liabilities | ||||
Contract liabilities and current deferred income | $ | $ | $ | $ |
Non-current deferred income | ||||
Total contract liabilities and deferred income | $ | $ | $ | $ |
2026 2Q FORM 10-Q 15
Remaining Performance Obligation (RPO). As of June 30, 2026, the aggregate amount of the contracted revenues allocated to our
unsatisfied (or partially unsatisfied) performance obligations were $176,284 million. We expect to recognize revenue as we satisfy our
remaining performance obligations as follows:
(1)Equipment-related RPO of $87,821 million of which 36 %, 65 %, and 97 % is expected to be recognized within 1 , 2 , and 5 years,
respectively, and the remaining thereafter.
(2)Services-related RPO of $88,463 million of which 16 %, 54 %, 79 %, and 92 % is expected to be recognized within 1 , 5 , 10 , and 15
years, respectively, and the remaining thereafter.
Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related RPO.
NOTE 10. CURRENT AND ALL OTHER ASSETS. All other current assets primarily include prepaid taxes and deferred charges, and
derivative instruments (see Note 20). All other current assets decreased $446 million for the six months ended June 30, 2026 primarily due
to the sale of our remaining shares in China XD Electric Co., Ltd. See Note 19 for further information. All other assets primarily include long-
term receivables (see Note 4), pension surplus, taxes receivable, and prepaid taxes and deferred charges. All other assets increased $93
million in the six months ended June 30, 2026.
NOTE 11. EQUITY METHOD INVESTMENTS
Equity method investment balance | Equity method investment income (loss) | |||||||
Three months ended June 30 | Six months ended June 30 | |||||||
June 30, 2026 | December 31, 2025 | 2026 | 2025 | 2026 | 2025 | |||
Power(a) | $ | $ | $ | $ | $ | $ | ||
Electrification(b) | ( | |||||||
Wind | ||||||||
Corporate | ( | ( | ( | |||||
Total | $ | $ | $ | $ | $ | $ | ||
(a) Includes Aero Alliance, our joint venture with Baker Hughes Company, that supports our customers through the fulfillment of
aeroderivative engines, spare parts, repairs, and maintenance services. Purchases of parts and services from the joint venture were
$275 million and $166 million in the three months ended and $476 million and $292 million in the six months ended June 30, 2026 and
2025, respectively. The Company owed Aero Alliance $73 million and $55 million as of June 30, 2026 and December 31, 2025,
respectively. These amounts have been recorded in Accounts payable and equipment project payables on the Consolidated Statement
of Financial Position.
(b) In the first quarter of 2026, we acquired the remaining 50 % stake of our former equity method investment in Prolec GE from Xignux. As
a result, Prolec GE is now consolidated within our financial statements. See Note 8 for further information.
NOTE 12. ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES
June 30, 2026 | December 31, 2025 | |
Trade payables | $ | $ |
Supply chain finance programs | ||
Equipment project payables | ||
Non-income based tax payables | ||
Accounts payable and equipment project payables | $ | $ |
We facilitate voluntary supply chain finance programs with third parties, which provide participating suppliers the opportunity to sell their GE
Vernova receivables to third parties at the sole discretion of both the suppliers and the third parties. Total supplier invoices paid through
these third-party programs were $1,902 million and $2,281 million for the six months ended June 30, 2026 and 2025, respectively.
NOTE 13. POSTRETIREMENT BENEFIT PLANS. GE Vernova-sponsored plans are presented in three categories: principal pension
plans, other pension plans, and principal retiree benefit plans. See Note 13 in the Notes to our audited consolidated and combined financial
statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for further information.
Consolidated Statement of Income (Loss).
2026 2Q FORM 10-Q 16
2026 | 2025 | ||||||
Three months ended June 30 | Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | |
Service cost – operating | $ | $ | $ | $ | $ | $ | |
Interest cost | |||||||
Expected return on plan assets | ( | ( | ( | ( | |||
Amortization of net loss (gain) | ( | ( | ( | ( | |||
Amortization of prior service cost (credit) | ( | ( | ( | ( | |||
Curtailment/settlement loss (gain) | |||||||
Non-operating benefit costs (income) | $( | $( | $( | $( | $( | $( | |
Net periodic expense (income) | $( | $( | $( | $( | $( | $( | |
2026 | 2025 | ||||||
Six months ended June 30 | Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | |
Service cost – operating | $ | $ | $ | $ | $ | $ | |
Interest cost | |||||||
Expected return on plan assets | ( | ( | ( | ( | |||
Amortization of net loss (gain) | ( | ( | ( | ( | |||
Amortization of prior service cost (credit) | ( | ( | ( | ( | |||
Curtailment/settlement loss (gain) | |||||||
Non-operating benefit costs (income) | $( | $( | $( | $( | $( | $( | |
Net periodic expense (income) | $( | $( | $( | $( | $( | $( | |
Funding. The Employee Retirement Income Security Act (ERISA) establishes minimum funding requirements for U.S. pension plans. GE
Vernova's funding policy is to contribute amounts that satisfy these requirements, together with such additional amounts as the Company
may determine to be appropriate. In June 2026, GE Vernova made a voluntary contribution of $516 million to the GE Energy Pension Plan.
The Company does not anticipate having to make any additional required contributions to this plan for the foreseeable future.
Defined Contribution Plan. GE Vernova sponsors a defined contribution plan for its eligible U.S. employees. Expenses associated with
their participation in the plan represent the employer contributions for GE Vernova employees and were $56 million and $51 million for the
three months ended and $98 million and $86 million for the six months ended June 30, 2026 and 2025, respectively.
NOTE 14. LONG-TERM BORROWINGS
June 30, 2026 | December 31, 2025 | |
$ | $ | |
Other long-term borrowings and finance leases | ||
Unamortized discount and issuance costs | ( | |
Total | $ | $ |
Less: Current maturities of long-term borrowings and finance leases | ||
Total long-term borrowings | $ | $ |
On February 4, 2026, GE Vernova issued $2,600 million aggregate principal amount of senior notes, consisting of $600 million of 4.250 %
senior notes due February 2031, $1,000 million of 4.875 % senior notes due February 2036, and $1,000 million of 5.500 % senior notes due
February 2056. The senior notes contain customary optional redemption provisions. Net proceeds from the offering were approximately
$2,543 million, net of the original issue discount, underwriting fees, and deferred issuance costs. The net proceeds from the debt issuance
were used for general corporate purposes, including financing a portion of the acquisition of the remaining 50 % interest in Prolec GE, which
closed on February 2, 2026.
The estimated fair value of our long-term borrowings, excluding finance leases, was $2,553 million and $11 million as of June 30, 2026 and
December 31, 2025, respectively, compared to carrying values of $2,552 million and $11 million as of June 30, 2026 and December 31,
2025, respectively. The fair value of the senior notes is classified as Level 2 within the fair value hierarchy.
Credit Facilities. As of June 30, 2026, we have $6,000 million of credit facilities consisting of (i) an unsecured revolving credit facility in an
aggregate committed amount of $3,000 million and (ii) a standby letter of credit and bank guarantee facility in an aggregate committed
amount of $3,000 million. Each of the credit facilities will mature on April 2, 2029. There were no borrowings outstanding on these facilities
as of June 30, 2026. Fees related to the unused portion of the facilities were insignificant in the three and six months ended June 30, 2026,
respectively. See Note 22 in the Notes to our audited consolidated and combined financial statements in our Annual Report on Form 10-K
2026 2Q FORM 10-Q 17
NOTE 15. CURRENT AND ALL OTHER LIABILITIES. All other current liabilities primarily include liabilities related to employee
compensation and benefits, equipment projects and other commercial liabilities, product warranties (see Note 22), taxes payable, liabilities
related to business disposition activities, operating lease liabilities (see Note 7), and restructuring liabilities (see Note 23). All other current
liabilities decreased $528 million in the six months ended June 30, 2026 primarily due to decreases in employee compensation and benefit
liabilities, and equipment projects and other commercial liabilities, partially offset by an increase in derivative instruments. All other liabilities
primarily include liabilities related to uncertain and other income taxes, product warranties (see Note 22), legal liabilities (see Note 22),
asset retirement obligations (see Note 22), operating lease liabilities (see Note 7), deferred income (see Note 9), equipment projects and
other commercial liabilities, and indemnifications (see Note 22). All other liabilities decreased $215 million in the six months ended June 30,
2026 primarily due to decreases in uncertain and other income taxes and related liabilities, and deferred income.
NOTE 16. INCOME TAXES. Our effective tax rate was 29.8 % for the three months ended June 30, 2026. The effective tax rate was
higher than the U.S. statutory rate of 21% primarily due to updated estimates of the purchase price allocation on the acquisition of Prolec
GE and losses providing no tax benefit in certain jurisdictions, partially offset by an income tax benefit from stock-based compensation.
Our effective tax rate was 10.5 % for the six months ended June 30, 2026. The effective tax rate was lower than the U.S. statutory rate of
21% primarily due to a nontaxable gain on the acquisition of Prolec GE and an income tax benefit from stock-based compensation, partially
offset by losses providing no tax benefit in certain jurisdictions.
Our effective tax rate was 23.7 % and 22.6 % for the three and six months ended June 30, 2025, respectively. The effective tax rate was
higher than the U.S. statutory rate of 21% in both periods primarily due to losses providing no tax benefit in certain jurisdictions, partially
offset by an income tax benefit from stock-based compensation.
NOTE 17. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) AND COMMON STOCK
Currency translation adjustment | Benefit plans | Cash flow hedges | Total AOCI | |
Balance as of April 1, 2026 | $( | $( | $ | $( |
AOCI before reclasses – net of taxes of $ | ( | ( | ( | ( |
Reclasses from AOCI – net of taxes of $ | ( | ( | ( | |
Less: AOCI attributable to noncontrolling interests | ( | ( | ||
Balance as of June 30, 2026 | $( | $( | $ | $( |
Balance as of April 1, 2025 | $( | $( | $ | $( |
AOCI before reclasses – net of taxes of $( | ( | |||
Reclasses from AOCI – net of taxes of $ | ( | ( | ||
Less: AOCI attributable to noncontrolling interests | ||||
Balance as of June 30, 2025 | $( | $( | $ | $( |
Balance as of January 1, 2026 | $( | $( | $ | $( |
AOCI before reclasses – net of taxes of $ | ( | ( | ( | ( |
Reclasses from AOCI – net of taxes of $ | ( | ( | ( | |
Less: AOCI attributable to noncontrolling interests | ||||
Balance as of June 30, 2026 | $( | $( | $ | $( |
Balance as of January 1, 2025 | $( | $( | $ | $( |
AOCI before reclasses – net of taxes of $( | ( | |||
Reclasses from AOCI – net of taxes of $ | ( | ( | ||
Less: AOCI attributable to noncontrolling interests | ||||
Balance as of June 30, 2025 | $( | $( | $ | $( |
Common Stock. On June 30, 2026, there were 266,333,581 shares of GE Vernova common stock outstanding. On December 9, 2025, we
announced that the Board of Directors had authorized an increase of our repurchase program to $10 billion of common stock repurchases,
from the prior authorization of $6 billion, which was announced on December 10, 2024. We repurchased 2.5 million shares and 4.3 million
shares for $2,350 million and $3,645 million during the three and six months ended June 30, 2026, respectively, excluding commission fees
and excise taxes. Cumulatively we have repurchased $6,963 million of common stock over the life of the program.
2026 2Q FORM 10-Q 18
NOTE 18. EARNINGS PER SHARE INFORMATION. The dilutive effect of outstanding stock options, restricted stock units, and
performance share units is reflected in the denominator for diluted earnings per share using the treasury stock method.
Three months ended June 30 | Six months ended June 30 | ||||
(In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |
Numerator: | |||||
Net income (loss) | $ | $ | $ | $ | |
Net loss (income) attributable to noncontrolling interests | |||||
Net income (loss) attributable to GE Vernova | $ | $ | $ | $ | |
Denominator: | |||||
Basic weighted-average shares outstanding | |||||
Dilutive effect of common stock equivalents | |||||
Diluted weighted-average shares outstanding | |||||
Basic earnings (loss) per share | $ | $ | $ | $ | |
Diluted earnings (loss) per share | $ | $ | $ | $ | |
Antidilutive securities(a) | |||||
(a) Diluted earnings (loss) per share excludes certain shares issuable under share-based compensation plans because the effect would
have been antidilutive.
NOTE 19. OTHER INCOME (EXPENSE) – NET
Three months ended June 30 | Six months ended June 30 | ||||
2026 | 2025 | 2026 | 2025 | ||
Equity method investment income (loss) (Note 11) | $ | $ | $ | $ | |
Net interest and investment income (loss)(a) | |||||
Gains (losses) on purchases and sales of business interests(b) | |||||
Derivative instruments (Note 20) | ( | ||||
Licensing income | |||||
Other – net | |||||
Total other income (expense) – net | $ | $ | $ | $ | |
(a) Includes financial interest related to our normal business operations primarily with customers. Includes a pre-tax realized gain of
$13 million and $264 million related to the sale of our remaining shares in China XD Electric Co., Ltd in the three and six months ended
June 30, 2026, respectively. See Note 10 for further information.
(b) Includes a pre-tax gain of $3,992 million related to the acquisition of the remaining 50 % stake in Prolec GE from Xignux as a result of
the remeasurement of our previously held equity interest to fair value, a pre-tax gain of $330 million related to the sale of our Proficy
business in our Electrification segment, and a pre-tax gain of $86 million related to the sale of an equity method investment at our
Financial Services business in the six months ended June 30, 2026. See Notes 3, 8, and 11 for further information.
NOTE 20. FINANCIAL INSTRUMENTS
Loans and Other Receivables. The Company’s financial assets not carried at fair value primarily consist of loan receivables and
noncurrent customer and other receivables. The net carrying amount was $173 million and $229 million as of June 30, 2026 and December
31, 2025, respectively. The estimated fair value was $173 million and $225 million as of June 30, 2026 and December 31, 2025,
respectively. All of these assets are considered to be Level 3.
Derivatives and Hedging. Our primary objective in executing and holding derivatives is to reduce the earnings and cash flow volatility
associated with fluctuations in foreign currency exchange rates and commodity prices over the terms of our customer contracts. These
hedge contracts reduce, but do not entirely eliminate, the impact of foreign currency exchange rate and commodity price movements. The
Company does not enter into or hold derivative instruments for speculative trading purposes.
We use foreign currency contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets, and liabilities.
These contracts are generally one to 13 months in duration but with maximum remaining maturities of up to 13 years as of June 30, 2026.
Cash Flow Hedges. The total amount in AOCI related to cash flow hedges was a net $19 million gain and a net $100 million gain as of
June 30, 2026 and December 31, 2025, respectively, of which a net $3 million gain and a net $26 million gain, respectively, related to our
share of AOCI recognized at our non-consolidated joint ventures. We expect to reclassify $5 million of pre-tax net gains associated with
designated cash flow hedges to earnings in the next 12 months, contemporaneously with the earnings effects of the related forecasted
transactions. The Company reclassified net gains (losses) from AOCI into earnings of $1 million and $(10 ) million for the three months
ended and $22 million and $(19 ) million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the maximum
length of time over which we are hedging forecasted transactions was approximately 9 years.
Net Investment Hedges. We enter into foreign exchange forwards designated as the hedging instruments in net investment hedging
relationships in order to mitigate the foreign currency risk attributable to the translation of the Company’s net investment in certain non-U.S.
dollar functional equity method investees. The total amount in AOCI related to net investment hedges was a net gain of $33 million and
$31 million as of June 30, 2026 and December 31, 2025, respectively.
2026 2Q FORM 10-Q 19
GROSS FAIR VALUE OF OUTSTANDING DERIVATIVE INSTRUMENTS
June 30, 2026 | Gross Notional | All other current assets | All other assets | All other current liabilities | All other liabilities |
Foreign currency exchange contracts accounted for as hedges(a) | $ | $ | $ | $ | $ |
Foreign currency exchange contracts(a) | |||||
Commodity and other contracts | |||||
Derivatives not accounted for as hedges | $ | $ | $ | $ | $ |
Total gross derivatives | $ | $ | $ | $ | $ |
Netting adjustment(b) | ( | ( | ( | ( | |
Net derivatives recognized in the Consolidated Statement of Financial Position | $ | $ | $ | $ |
December 31, 2025 | Gross Notional | All other current assets | All other assets | All other current liabilities | All other liabilities |
Foreign currency exchange contracts accounted for as hedges(a) | $ | $ | $ | $ | $ |
Foreign currency exchange contracts(a) | |||||
Commodity and other contracts | |||||
Derivatives not accounted for as hedges | $ | $ | $ | $ | $ |
Total gross derivatives | $ | $ | $ | $ | $ |
Netting adjustment(b) | ( | ( | ( | ( | |
Net derivatives recognized in the Consolidated Statement of Financial Position | $ | $ | $ | $ |
(a) Total gross notional amount of foreign currency exchange contracts represents the volume of derivatives activity. When foreign currency
exchange contracts with the same currency pair and maturity date are netted across different counterparties, the notional amount
reduces to approximately $24,607 million and $24,740 million as of June 30, 2026 and December 31, 2025, respectively.
(b) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts
include fair value adjustments related to our own and counterparty non-performance risk.
Three months ended June 30 | Six months ended June 30 | ||||
2026 | 2025 | 2026 | 2025 | ||
Cash flow hedges | $( | $ | $( | $ | |
Net investment hedges | ( | ( | |||
Three months ended June 30, 2026 | Sales of equipment and services | Cost of equipment and services | Selling, general, and administrative expenses | Other income (expense) – net |
Total amount of income and expense in the Consolidated Statement of Income (Loss) | $ | $ | $ | $ |
Effects of cash flow hedges | $ | $ | $ | $ |
Foreign currency exchange contracts | ( | ( | ||
Commodity and other contracts | ( | ( | ||
Effect of derivatives not designated as hedges | $( | $ | $( | $( |
Three months ended June 30, 2025 | ||||
Total amount of income and expense in the Consolidated Statement of Income (Loss) | $ | $ | $ | $ |
Effects of cash flow hedges | $( | $ | $ | $ |
Foreign currency exchange contracts | ( | ( | ||
Commodity and other contracts | ( | |||
Effect of derivatives not designated as hedges | $ | $( | $( | $ |
2026 2Q FORM 10-Q 20
Six months ended June 30, 2026 | Sales of equipment and services | Cost of equipment and services | Selling, general, and administrative expenses | Other income (expense) – net |
Total amount of income and expense in the Consolidated Statement of Income (Loss) | $ | $ | $ | $ |
Effects of cash flow hedges | $ | $( | $ | $ |
Foreign currency exchange contracts | ( | |||
Commodity and other contracts | ( | ( | ||
Effect of derivatives not designated as hedges | $ | $ | $( | $ |
Six months ended June 30, 2025 | ||||
Total amount of income and expense in the Consolidated Statement of Income (Loss) | $ | $ | $ | $ |
Effects of cash flow hedges | $( | $ | $ | $ |
Foreign currency exchange contracts | ( | ( | ||
Commodity and other contracts | ( | ( | ||
Effect of derivatives not designated as hedges | $ | $( | $( | $ |
The amount excluded for cash flow hedges was a gain (loss) of $7 million and $12 million for the three months ended and $16 million and
$20 million for the six months ended June 30, 2026 and 2025, respectively. These amounts are recognized in Sales of equipment, Sales of
services, Cost of equipment, and Cost of services in our Consolidated Statement of Income (Loss).
NOTE 21. VARIABLE INTEREST ENTITIES (VIEs). In our Consolidated Statement of Financial Position, we have assets of $90
million and $128 million and liabilities of $99 million and $132 million as of June 30, 2026 and December 31, 2025, respectively, from
consolidated VIEs. These entities were created to manage our insurance exposure through an insurance captive and to help our customers
facilitate or finance the purchase of GE Vernova equipment and services, and have no features that could expose us to losses that would
significantly exceed the difference between the consolidated assets and liabilities.
Our investments in unconsolidated VIEs were $124 million and $85 million as of June 30, 2026 and December 31, 2025, respectively. Our
maximum exposure to loss in respect of unconsolidated VIEs is increased by our commitments to make additional investments in these
entities described in Note 22.
NOTE 22. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES
Commitments. We had total investment commitments of $133 million and no unfunded lending commitments at June 30, 2026. The
commitments primarily consist of obligations to make investments or provide funding by our Financial Services business. See Note 21 for
further information.
Guarantees. As of June 30, 2026, we were committed under the following guarantee arrangements:
Credit support. We have provided $772 million of credit support on behalf of certain customers or associated companies, predominantly
joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees, and a line of credit to
support our consolidated subsidiaries. The liability for such credit support was $8 million.
Indemnification agreements. We have $994 million of indemnification commitments, including our commercial contracts and agreements
governing the sale of business assets, for which we recorded a liability of $655 million. The liability is primarily associated with cash and
deposits and includes a $390 million liability at June 30, 2026 related to cash transferred to the Company from General Electric Company
(GE) as part of the separation that is restricted in connection with certain legal matters related to legacy GE operations. The liability reflects
the use of these funds to settle any associated obligations and the return of any remaining cash to GE in a future reporting period once
resolved. In addition, the liability includes $169 million of indemnifications in connection with agreements entered into with GE related to the
separation, including a tax matters agreement (TMA). The IRS is currently auditing the consolidated GE U.S. income tax returns for 2016
through 2020, during which years the GE Vernova businesses were part of the consolidated filing. In the first quarter of 2026, we
were informed by GE of an update to this IRS audit. The resolution could result in additional tax obligations that may be allocated to GE
Vernova by GE, in accordance with the TMA. The resolution of this matter could be time-consuming and is not likely in the near term. If the
resolution is unfavorable, then it could result in material indemnification obligations due from GE Vernova to GE, which are not reasonably
estimable at this time and for which no liability has been accrued.
Product Warranties. We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates
are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts
provided. The liability for product warranties was $1,595 million and $1,573 million as of June 30, 2026 and December 31, 2025,
respectively.
Legal Matters. In the normal course of our business, we are involved from time to time in various arbitrations, class actions, litigation,
investigations, and other legal, regulatory, or governmental actions. See Note 22 in the Notes to our audited consolidated and combined
financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for further information.
2026 2Q FORM 10-Q 21
Environmental and Asset Retirement Obligations. Our operations involve the use, disposal, and cleanup of substances regulated under
environmental protection laws and nuclear decommissioning regulations. We have obligations for ongoing and future environmental
remediation activities and may incur additional liabilities in connection with previously remediated sites. Additionally, like many other
industrial companies, we and our subsidiaries are defendants in various lawsuits related to alleged worker exposure to asbestos or other
hazardous materials. Liabilities for environmental remediation, nuclear decommissioning, and worker exposure claims exclude possible
insurance recoveries.
It is reasonably possible that our exposure will exceed amounts accrued. However, due to uncertainties about the status of laws,
regulations, technology, and information related to individual sites and lawsuits, such amounts are not reasonably estimable. Our reserves
related to environmental remediation and worker exposure claims recorded in All other liabilities were $129 million and $135 million as of
June 30, 2026 and December 31, 2025, respectively.
We record asset retirement obligations associated with the retirement of tangible long-lived assets as a liability in the period in which the
obligation is incurred and its fair value can be reasonably estimated. These obligations primarily represent nuclear decommissioning, legal
obligations to return leased premises to their initial state, or dismantle and repair specific alterations for certain leased sites. The liability is
measured at the present value of the obligation when incurred and is adjusted in subsequent periods. Corresponding asset retirement costs
are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset’s useful life. Our asset
retirement obligations were $547 million and $541 million as of June 30, 2026 and December 31, 2025, respectively, and are recorded in All
other current liabilities and All other liabilities in our Consolidated Statement of Financial Position. Of these amounts, $468 million and $459
million, respectively, were related to nuclear decommissioning obligations.
NOTE 23. RESTRUCTURING CHARGES AND SEPARATION COSTS
Restructuring and Other Charges. The Company has undertaken or committed to various restructuring initiatives, including workforce
reductions and the consolidation of manufacturing and service facilities. Restructuring and other charges primarily include employee-related
termination benefits associated with workforce reductions, facility exit costs, asset write-downs, and cease-use costs. We expect the
majority of costs to be incurred within two years of the commitment of a restructuring initiative.
our reported segment results, major restructuring programs are excluded from measurement of segment operating performance for internal
and external purposes; those excluded amounts are reported in Restructuring and other charges. See Note 24 for further information.
RESTRUCTURING AND OTHER CHARGES | Three months ended June 30 | Six months ended June 30 | |||
2026 | 2025 | 2026 | 2025 | ||
Workforce reductions | $( | $ | $ | $ | |
Plant closures and associated costs and other asset write-downs | ( | ||||
Acquisition/disposition net charges and other | |||||
Total restructuring and other charges | $ | $ | $ | $ | |
Cost of equipment and services | $( | $ | $ | $ | |
Selling, general, and administrative expenses | |||||
Total restructuring and other charges | $ | $ | $ | $ | |
Power | $( | $ | $ | $ | |
Electrification | |||||
Wind | |||||
Other | |||||
Total restructuring and other charges(a) | $ | $ | $ | $ | |
(a) Includes $24 million and $14 million for the three months ended and $95 million and $42 million for the six months ended June 30, 2026
and 2025, respectively, primarily of non-cash impairment, accelerated depreciation, and other charges not reflected in the liability table
below.
Liabilities associated with restructuring activities were primarily related to workforce reductions and were recorded in All other current
liabilities, All other liabilities, and Non-current compensation and benefits in our Consolidated Statement of Financial Position.
RESTRUCTURING LIABILITIES | 2026 | 2025 |
Balance as of January 1 | $ | $ |
Payments | ( | ( |
Foreign exchange and other | ( | ( |
Balance as of June 30 | $ | $ |
Total restructuring and other charges incurred for the three and six months ended June 30, 2026 and 2025 primarily relate to programs to
simplify the organizational structure of, reduce operating costs in, and to right-size the businesses. The costs for the three and six months
ended June 30, 2026 also include costs of $12 million and $68 million, respectively, related to the acquisition and integration of the
remaining 50 % stake of Prolec GE in our Electrification segment. On July 21, 2025, we approved a restructuring plan (the Plan)
accelerating previously announced enterprise transformation activities to reduce general and administrative costs. We have incurred
$180 million of costs in connection with the Plan primarily consisting of termination benefits associated with a reduction in the workforce,
with $142 million of the costs resulting in cash expenditures. In the three and six months ended June 30, 2026, we incurred $(6 ) million and
$36 million, respectively, of costs related to the Plan, which is now substantially complete.
2026 2Q FORM 10-Q 22
Separation Costs. In connection with the separation from GE, the Company recognized separation costs of $38 million and $34 million for
the three months ended and $61 million and $80 million for the six months ended June 30, 2026 and 2025, respectively, in our
Consolidated Statement of Income (Loss). Separation costs include system implementations, advisory fees, one-time stock option grant,
and other one-time costs, which are primarily recorded in Selling, general, and administrative expenses.
NOTE 24. SEGMENT INFORMATION. Operating segments include components of an enterprise about which separate financial
information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker (CODM) for the purpose of assessing
performance and allocating resources. The Company’s CODM is its Chief Executive Officer (CEO). Our operating activities are managed
through three
services sold and how the Company manages its operations.
The performance of these segments is principally measured based on revenues and segment EBITDA. Segment EBITDA is determined
based on the performance measures used by our CEO to assess the performance of each business in a given period. In connection with
that assessment, the CEO may exclude matters, such as charges for impairments, significant higher-cost restructuring programs,
manufacturing footprint rationalization and other similar expenses, acquisition costs and other related charges, certain gains and losses
from acquisitions or dispositions, and certain other non-operational items.
Consistent accounting policies have been applied by all segments for all reporting periods. See Note 1 for a description of our reportable
segments.
Three months ended June 30 | Six months ended June 30 | ||||
TOTAL SEGMENT REVENUES BY BUSINESS UNIT | 2026 | 2025 | 2026 | 2025 | |
Gas Power | $ | $ | $ | $ | |
Nuclear Power | |||||
Hydro Power | |||||
Power | $ | $ | $ | $ | |
Power Transmission | $ | $ | $ | $ | |
Grid Systems Integration | |||||
Power Conversion & Storage | |||||
Grid Automation & Software | |||||
Electrification | $ | $ | $ | $ | |
Onshore Wind | $ | $ | $ | $ | |
Offshore Wind | |||||
Wind | $ | $ | $ | $ | |
Total segment revenues | $ | $ | $ | $ | |
SEGMENT EBITDA | ||||
Three months ended June 30, 2026 | Power | Electrification | Wind | Total |
Equipment revenues | $ | $ | $ | $ |
Services revenues | ||||
Intersegment revenues | ||||
Segment revenues | ||||
Other revenues and elimination of intersegment revenues | ( | |||
Total revenues | ||||
Less:(a) | ||||
Cost of revenues(b) | ||||
Selling, general, and administrative expenses(b) | ||||
Research and development expenses(b) | ||||
Other segment items(c) | ( | |||
Segment EBITDA | $ | $ | $( | $ |
Six months ended June 30, 2026 | Power | Electrification | Wind | Total |
Equipment revenues | $ | $ | $ | $ |
Services revenues | ||||
Intersegment revenues | ||||
Segment revenues | ||||
Other revenues and elimination of intersegment revenues | ( | |||
Total revenues | ||||
Less:(a) | ||||
Cost of revenues(b) | ||||
Selling, general, and administrative expenses(b) | ||||
Research and development expenses(b) | ||||
Other segment items(c) | ( | ( | ||
Segment EBITDA | $ | $ | $( | $ |
2026 2Q FORM 10-Q 23
Three months ended June 30, 2025 | Power | Electrification | Wind | Total |
Equipment revenues | $ | $ | $ | $ |
Services revenues | ||||
Intersegment revenues | ||||
Segment revenues | ||||
Other revenues and elimination of intersegment revenues | ( | |||
Total revenues | ||||
Less:(a) | ||||
Cost of revenues(b) | ||||
Selling, general, and administrative expenses(b) | ||||
Research and development expenses(b) | ||||
Other segment items(c) | ( | ( | ||
Segment EBITDA | $ | $ | $( | $ |
Six months ended June 30, 2025 | Power | Electrification | Wind | Total |
Equipment revenues | $ | $ | $ | $ |
Services revenues | ||||
Intersegment revenues | ||||
Segment revenues | ||||
Other revenues and elimination of intersegment revenues | ( | |||
Total revenues | ||||
Less:(a) | ||||
Cost of revenues(b) | ||||
Selling, general, and administrative expenses(b) | ||||
Research and development expenses(b) | ||||
Other segment items(c) | ( | ( | ( | |
Segment EBITDA | $ | $ | $( | $ |
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
Intersegment expenses are included within the amounts shown.
(b) Excludes depreciation and amortization expenses.
(c) Primarily includes equity method investment income and other interest and investment income.
RECONCILIATION OF SEGMENT EBITDA TO NET INCOME (LOSS) | Three months ended June 30 | Six months ended June 30 | |||
2026 | 2025 | 2026 | 2025 | ||
Segment EBITDA | $ | $ | $ | $ | |
Corporate and other(a) | ( | ( | ( | ( | |
Restructuring and other charges | ( | ( | ( | ( | |
Gains (losses) on purchases and sales of business interests(b) | ( | ||||
Separation costs(c) | ( | ( | ( | ( | |
Non-operating benefit income | |||||
Depreciation and amortization(d) | ( | ( | ( | ( | |
Interest and other financial income (charges) – net(e) | |||||
(Provision) benefit for income taxes | ( | ( | ( | ( | |
Net income (loss) | $ | $ | $ | $ | |
(a) Includes interest (income) expense of zero and zero and (provision) benefit for income taxes of $(3 ) million and $2 million for the three
months ended June 30, 2026 and 2025, respectively, as well as interest (income) expense of zero and $(1 ) million and (provision)
benefit for income taxes of $7 million and $4 million for the six months ended June 30, 2026 and 2025, respectively, related to our
Financial Services business which, because of the nature of its investments, is measured on an after-tax basis.
(b) Includes a pre-tax gain of $3,992 million in the six months ended June 30, 2026 related to the acquisition of the remaining 50 % stake in
Prolec GE from Xignux as a result of the remeasurement of our previously held equity interest to fair value and an expense of $35
million and $106 million for the impact of a fair value adjustment to Prolec GE inventory that was recorded in Cost of equipment in the
three and six months ended June 30, 2026, respectively. Includes a pre-tax gain of $330 million related to the sale of our Proficy
business in our Electrification segment in the six months ended June 30, 2026. Also includes realized gains related to the sale of our
remaining interest in China XD Electric Co., Ltd, recorded in Net interest and investment income (loss) which is part of Other income
(expense) - net. See Note 19 for further information.
(c) Costs incurred in the separation from GE, including system implementations, advisory fees, one-time stock option grant, and other one-
time costs.
(d) Excludes depreciation and amortization expense related to Restructuring and other charges. Includes amortization of basis differences
included in Equity method investment income (loss) which is part of Other income (expense) - net.
(e) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business
operations primarily with customers.
2026 2Q FORM 10-Q 24
ASSETS BY SEGMENT | June 30, 2026 | December 31, 2025 |
Power | $ | $ |
Electrification | ||
Wind | ||
Other(a) | ||
Total assets | $ | $ |
(a)We classify deferred tax assets as "Other" for purposes of this disclosure.
PROPERTY, PLANT, AND EQUIPMENT ADDITIONS | Three months ended June 30 | Six months ended June 30 | |||
2026 | 2025 | 2026 | 2025 | ||
Power | $ | $ | $ | $ | |
Electrification(a) | |||||
Wind | |||||
Other | |||||
Total | $ | $ | $ | $ | |
(a)Includes $942 million of Property, plant, and equipment acquired with Prolec GE in the six months ended June 30, 2026.
DEPRECIATION AND AMORTIZATION | Three months ended June 30 | Six months ended June 30 | |||
2026 | 2025 | 2026 | 2025 | ||
Power | $ | $ | $ | $ | |
Electrification | |||||
Wind | |||||
Other | |||||
Total | $ | $ | $ | $ | |
2026 2Q FORM 10-Q 25
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS. The following discussion and analysis of our financial condition and results of operations should be read in conjunction
with our consolidated financial statements, which are prepared in conformity with U.S. generally accepted accounting principles (GAAP),
and corresponding notes included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis provides
information that management believes to be relevant to understanding the financial condition and results of operations of the Company for
the three and six months ended June 30, 2026 and 2025. The below discussion should be read alongside Item 7. "Management’s
Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated and combined financial statements
and corresponding notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Unless otherwise noted, tables
are presented in U.S. dollars in millions, except for per-share amounts which are presented in U.S. dollars. Certain columns and rows
within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from the underlying
numbers in millions. Unless otherwise noted, statements related to changes in operating results relate to the corresponding period in the
prior year.
In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data but not
presented in our financial statements prepared in accordance with GAAP. Certain of these data are considered “non-GAAP financial
measures” under SEC rules. For the reasons we use these non-GAAP financial measures and the reconciliations to their most directly
comparable GAAP financial measures, see "—Non-GAAP Financial Measures."
Prolec GE. On February 2, 2026, we completed the acquisition of the remaining 50% stake of Prolec GE, our former unconsolidated joint
venture with Xignux, in exchange for cash consideration of approximately $5.3 billion. Prolec GE is an electric industry leader in North
America, with approximately 10,000 employees across seven manufacturing sites in the Americas, including five in the U.S. It produces a
wide variety of transformers and transformer components for the generation, transmission, and distribution of electricity, complemented by
its broad transformer services offering. Net assets and results of operations of Prolec GE are included in our results commencing on
February 2, 2026 and are reported within the Electrification segment. As a result of this acquisition, we remeasured our previously held
equity interest to fair value, with the resulting pre-tax gain of $4.0 billion recognized within Other income (expense) – net in our
Consolidated Statement of Income (Loss) during the first quarter of 2026.
Long-term Borrowings. On February 4, 2026, we issued $2.6 billion aggregate principal amount of senior notes, consisting of $0.6 billion,
$1.0 billion, and $1.0 billion due February 2031, 2036, and 2056, respectively. The proceeds from the debt offering were used for general
corporate purposes, including financing a portion of the acquisition of the remaining 50% stake of Prolec GE.
Offshore Wind. At Offshore Wind, we continue to experience pressure related to our project costs and execution timelines, as we deliver
on our existing backlog. On December 22, 2025, the United States Department of Interior announced that it was pausing the leases for all
large-scale offshore wind projects under construction in the United States, which had a direct impact on the Vineyard Wind project
completion timeline. On January 27, that pause was lifted and during the first quarter of 2026, we successfully completed the installation of
all remaining wind turbines at the Vineyard Wind project and now have moved on to the remaining commissioning activities. As we work
through the final stages of the project, we are working with our customer to resolve outstanding claims and counterclaims.
Tariffs. Throughout 2025 and 2026, the United States and other countries imposed global tariffs. These tariffs have resulted, and any
future tariffs will result, in additional costs to us. The current total estimated cost impact from the global tariffs as outlined is approximately
$100 million to $200 million in 2026, after taking into consideration contractual protections and mitigating actions, including pursuing the
recovery of certain tariffs. The actual impacts of tariffs may be significantly different than our current estimate. Our estimate is subject to
several factors including the amount, duration, and scope and nature of the tariffs, countermeasures that countries take, mitigating or other
actions we take, and contractual implications.
Business Unit Realignment. Effective January 1, 2026, we realigned the reporting of certain of our business units. Historical financial
information presented within this report conforms to the new business unit structure within the Power, Electrification, and Wind segments.
•Within our Power segment, our Steam Power business unit was realigned into Nuclear Power, Hydro Power, and Gas Power. In
addition, a component of our former Electrification Software business unit was realigned into Gas Power.
•Within our Electrification segment, we revised our Grid Solutions business unit into three new business units, Power Transmission,
Grid Systems Integration, and Grid Automation & Software. In addition, a component of our former Electrification Software business
unit was realigned into Grid Automation & Software and another component was realigned into Gas Power within our Power segment.
•Within our Wind segment, we combined our Onshore Wind and LM Wind Power business units into Onshore Wind.
TRENDS AND FACTORS IMPACTING OUR PERFORMANCE. We believe our performance and future success depends on a number of
factors that present significant opportunities for us but also pose risks and challenges, including those discussed below.
Our worldwide operations are affected by regional and global factors impacting energy demand, including industry trends like
decarbonization, an increasing demand for renewable energy alternatives, governmental regulations and policies, and changes in broader
economic and geopolitical conditions. These trends, along with the growing focus on the digitization and sustainability of the electricity
infrastructure, can impact performance across each of our business segments. We believe that our industry-defining technologies and
commitment to innovation position us well to capitalize on, as well as mitigate adverse impacts from, these long-term trends:
•Demand growth for electricity generation – Significant investment, infrastructure, and supply diversity will be essential to help meet
forecasted energy demand growth arising from population and global economic growth.
•Decarbonization – The urgency to combat climate change is fueling technology advancements that improve the economic viability and
efficiency of renewable energy alternatives and facilitate the transition to a more sustainable power sector.
•Evolving generation mix – The power industry is shifting from coal generation to more electricity generated from zero- or low-carbon
energy sources, and an evolving balance of generation sources will be necessary to maintain a reliable, resilient, and affordable
system.
2026 2Q FORM 10-Q 26
•Energy resilience & security – Threats and challenges from extreme weather events, cyber-attacks, and geopolitical tensions have
increased focus on the strength and resilience of power generation and transmission and reinforced the need for a diversified mix of
energy sources.
•Grid modernization and investment – Increased demand and the integration of advanced generation and storage solutions drive the
need to update aging infrastructure with new grid integration and automation solutions.
•Regulatory and policy changes – Government policies and regulations, such as carbon pricing, renewable energy mandates, and
subsidies for renewable energy technologies, can significantly impact the power generation landscape. Staying ahead of regulatory
changes and adapting to new compliance requirements is crucial for maintaining a competitive advantage.
•Financial and investment dynamics – Access to capital and investment trends in the energy sector can influence the development and
deployment of new power generation projects. Understanding market dynamics and securing funding are key to progressing strategic
initiatives.
RESULTS OF OPERATIONS
Summary of Results. RPO was $176.3 billion and $128.7 billion as of June 30, 2026 and 2025, respectively. For the three months ended
June 30, 2026, total revenues were $11.1 billion, an increase of $2.0 billion for the quarter. Net income (loss) was $0.6 billion, an increase
of $0.2 billion in net income for the quarter, and net income (loss) margin was 5.8%. Diluted earnings (loss) per share was $2.47 for the
three months ended June 30, 2026, an increase in diluted earnings per share of $0.61 for the quarter. Cash flows from (used for) operating
activities were $10.7 billion and $1.5 billion for the six months ended June 30, 2026 and 2025, respectively.
For the three months ended June 30, 2026, Adjusted EBITDA* was $1.2 billion, an increase of $0.5 billion. Free cash flow* was $9.9 billion
and $1.2 billion for the six months ended June 30, 2026 and 2025, respectively.
RPO, a measure of backlog, includes unfilled firm and unconditional customer orders for equipment and services, excluding any purchase
order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. Services RPO includes the
estimated life of contract sales related to long-term service agreements which remain unsatisfied at the end of the reporting period,
excluding contracts that are not yet active. Services RPO also includes the estimated amount of unsatisfied performance obligations for
time and material agreements, material services agreements, spare parts under purchase order, multi-year maintenance programs, and
other services agreements, excluding any order that provides the customer with the ability to cancel or terminate without incurring a
substantive penalty. See Note 9 in the Notes to the consolidated financial statements for further information.
RPO | June 30, 2026 | December 31, 2025 | June 30, 2025 |
Equipment | $87,821 | $64,245 | $49,712 |
Services | 88,463 | 85,993 | 78,938 |
Total RPO | $176,284 | $150,238 | $128,650 |
As of June 30, 2026, RPO increased $26.0 billion (17%) from December 31, 2025, primarily at Power, due to increases at Gas Power from
Heavy-Duty Gas Turbine and Aeroderivative equipment and transactional services, and increases at Nuclear Power services; and at
Electrification, due to the acquisition of Prolec GE and demand for switchgear and transformers at Power Transmission, and demand for
alternating current substation solutions at Grid Systems Integration; partially offset at Wind, due to a decrease at Offshore Wind as we
continue to execute on our contracts and at Onshore Wind due to a decrease in orders primarily in North America. RPO increased $47.6
billion (37%) from June 30, 2025, primarily at Power, due to increases at Gas Power from Heavy-Duty Gas Turbine and Aeroderivative
equipment and contractual services, and increases at Nuclear Power services and equipment, partially offset by Hydro Power equipment;
and at Electrification, due to the acquisition of Prolec GE and demand for switchgear and transformers at Power Transmission, demand for
alternating current substation solutions and high-voltage direct current solutions at Grid Systems Integration, and synchronous condensers
at Power Conversion & Storage; partially offset at Wind, due to a decrease at Offshore Wind as we continue to execute on our contracts
and at Onshore Wind due to a decrease in orders primarily in North America.
Three months ended June 30 | Six months ended June 30 | ||||
REVENUES | 2026 | 2025 | 2026 | 2025 | |
Equipment revenues | $6,459 | $4,894 | $11,713 | $9,091 | |
Services revenues | 4,645 | 4,217 | 8,729 | 8,052 | |
Total revenues | $11,104 | $9,111 | $20,442 | $17,143 | |
For the three months ended June 30, 2026, total revenues increased $2.0 billion (22%). Equipment revenues increased at Electrification,
primarily due to the acquisition of Prolec GE, and increased volume in switchgear and transformers at Power Transmission, and at Grid
Systems Integration due to increased volume in alternating current substation solutions and high-voltage direct current solutions; and at
Power, due to increases at Gas Power from higher Aeroderivative deliveries and favorable pricing; partially offset at Wind, primarily at
Onshore Wind due to lower deliveries, partially offset by increases at Offshore Wind due to higher deliveries and installations. Services
revenues increased at Power, due to increases at Nuclear Power and Gas Power from higher volume and favorable pricing; at Wind, due to
an increase at Onshore Wind from higher transactional volume; and at Electrification.
Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*
increased $1.1 billion (12%), organic equipment revenues* increased $0.7 billion (14%) and organic services revenues* increased $0.4
billion (10%). Organic revenues* increased at Power and Electrification, partially offset at Wind.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 27
For the six months ended June 30, 2026, total revenues increased $3.3 billion (19%). Equipment revenues increased at Electrification,
primarily due to the acquisition of Prolec GE, and increased volume in switchgear and transformers at Power Transmission, and at Grid
Systems Integration due to increased volume in alternating current substation solutions and high-voltage direct current solutions; and at
Power, due to increases at Gas Power from Heavy-Duty Gas Turbine and Aeroderivative deliveries and favorable pricing; partially offset at
Wind, primarily at Onshore Wind due to lower deliveries, partially offset by increases at Offshore Wind due to higher deliveries and
installations. Services revenues increased at Power, due to increases at Gas Power and Nuclear Power from higher parts volume and
favorable pricing; at Wind, due to an increase at Onshore Wind from higher transactional volume; and at Electrification.
Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*
increased $1.7 billion (10%), organic equipment revenues* increased $1.1 billion (12%) and organic services revenues* increased $0.6
billion (7%). Organic revenues* increased at Electrification and Power, partially offset at Wind.
Three months ended June 30 | Six months ended June 30 | ||||
EARNINGS (LOSS) | 2026 | 2025 | 2026 | 2025 | |
Operating income (loss) | $653 | $378 | $833 | $421 | |
Net income (loss) | 649 | 492 | 5,398 | 756 | |
Net income (loss) attributable to GE Vernova | 668 | 514 | 5,413 | 768 | |
Adjusted EBITDA* | 1,250 | 770 | 2,146 | 1,227 | |
Diluted earnings (loss) per share | $2.47 | $1.86 | $19.96 | $2.77 | |
For the three months ended June 30, 2026, operating income (loss) was $0.7 billion, a $0.3 billion increase, primarily due to: an increase
in segment results at Electrification of $0.4 billion, primarily due to volume, productivity, and favorable price at Power Transmission and
Power Conversion & Storage; and at Power of $0.2 billion, primarily at Gas Power due to higher volume and favorable pricing, partially
offset by the impact of inflation; partially offset by a decrease at Wind of $(0.1) billion, primarily at Onshore Wind due to lower equipment
deliveries and at Offshore Wind due to higher project costs, partially offset by lower costs at Onshore Wind services; and an increase in
depreciation and amortization expense across all segments of $0.2 billion.
Net income (loss) and Net income (loss) margin were $0.6 billion and 5.8%, respectively, for the three months ended June 30, 2026, an
increase of $0.2 billion and 0.4%, respectively, for the quarter, primarily due to an increase in operating income (loss) of $0.3 billion,
partially offset by an increase in provision for income taxes of $0.1 billion.
Adjusted EBITDA* and Adjusted EBITDA margin* were $1.2 billion and 11.3%, respectively, for the three months ended June 30, 2026, an
increase of $0.5 billion and 2.8%, respectively, primarily driven by increases in segment results at Electrification and Power, partially offset
at Wind.
For the six months ended June 30, 2026, operating income (loss) was $0.8 billion, a $0.4 billion increase, primarily due to: an increase in
segment results at Electrification of $0.7 billion, primarily due to volume, productivity, and favorable price at Power Transmission and Grid
Systems Integration; and at Power of $0.5 billion, primarily at Gas Power due to favorable pricing, higher volume, and increased
productivity, partially offset by the impact of inflation and additional expenses to support investments at Gas Power and Nuclear Power;
partially offset by a decrease at Wind of $(0.3) billion, primarily at Onshore Wind due to lower equipment deliveries and the impact of tariffs,
and at Offshore Wind due to higher contract losses, partially offset by lower costs at Onshore Wind services; and an increase in
depreciation and amortization expense across all segments of $0.4 billion.
Net income (loss) and Net income (loss) margin were $5.4 billion and 26.4%, respectively, for the six months ended June 30, 2026, an
increase of $4.6 billion and 22.0%, respectively, for the year, primarily due to an increase in other income (expense) - net of $4.6 billion
driven by a $4.0 billion pre-tax gain related to the acquisition of Prolec GE and a $0.3 billion pre-tax gain related to the sale of our Proficy
manufacturing software business (Proficy), and an increase in operating income (loss) of $0.4 billion, partially offset by an increase in
provision for income taxes of $0.4 billion.
Adjusted EBITDA* and Adjusted EBITDA margin* were $2.1 billion and 10.5%, respectively, for the six months ended June 30, 2026, an
increase of $0.9 billion and 3.3%, respectively, primarily driven by increases in segment results at Electrification and Power, partially offset
at Wind.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 28
SEGMENT OPERATIONS. Segment revenues include sales of equipment and services by our segments. Segment EBITDA is
determined based on performance measures used by our Chief Operating Decision Maker, who is our Chief Executive Officer (CEO), to
assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude certain non-cash
charges, such as depreciation and amortization, impairments and other matters, major restructuring programs, and certain gains and
losses from purchases and sales of business interests. Certain corporate costs, including those related to shared services, employee
benefits, and information technology (IT), are allocated to our segments based on usage or their relative net cost of operations.
Three months ended June 30 | Six months ended June 30 | ||||
SUMMARY OF REPORTABLE SEGMENTS | 2026 | 2025 | 2026 | 2025 | |
Power | $5,477 | $4,785 | $10,449 | $9,234 | |
Electrification | 3,637 | 2,162 | 6,597 | 4,001 | |
Wind | 2,026 | 2,245 | 3,459 | 4,095 | |
Eliminations and other | (37) | (80) | (62) | (187) | |
Total revenues | $11,104 | $9,111 | $20,442 | $17,143 | |
Segment EBITDA | |||||
Power | $1,031 | $785 | $1,842 | $1,303 | |
Electrification | 671 | 314 | 1,200 | 519 | |
Wind | (275) | (165) | (657) | (312) | |
Corporate and other(a) | (177) | (164) | (239) | (283) | |
Adjusted EBITDA*(b) | $1,250 | $770 | $2,146 | $1,227 | |
(a) Includes our Financial Services business and other general corporate expenses, including costs required to operate as a stand-alone
public company.
(b) See "—Non-GAAP Financial Measures" for additional information related to Adjusted EBITDA*. Adjusted EBITDA* includes interest and
other financial income (charges) and the benefit for income taxes of Financial Services as this business is managed on an after-tax
basis due to the nature of its investments.
POWER
Three months ended June 30 | Six months ended June 30 | ||||
Orders in units | 2026 | 2025 | 2026 | 2025 | |
Gas Turbines | 113 | 47 | 150 | 85 | |
Heavy-Duty Gas Turbines | 52 | 20 | 80 | 49 | |
HA-Turbines | 15 | 7 | 27 | 15 | |
Aeroderivatives | 61 | 27 | 70 | 36 | |
Gas Turbine Gigawatts | 12.1 | 5.1 | 20.1 | 12.2 | |
Three months ended June 30 | Six months ended June 30 | ||||
Sales in units | 2026 | 2025 | 2026 | 2025 | |
Gas Turbines | 29 | 21 | 54 | 40 | |
Heavy-Duty Gas Turbines | 13 | 18 | 28 | 30 | |
HA-Turbines | 3 | 8 | 8 | 13 | |
Aeroderivatives | 16 | 3 | 26 | 10 | |
Gas Turbine Gigawatts | 3.3 | 5.2 | 7.5 | 8.2 | |
RPO | June 30, 2026 | December 31, 2025 | June 30, 2025 |
Equipment | $39,261 | $24,707 | $16,133 |
Services | 72,388 | 69,841 | 63,088 |
Total RPO | $111,649 | $94,548 | $79,221 |
RPO as of June 30, 2026 increased $17.1 billion (18%) from December 31, 2025, primarily at Gas Power due to increases in Heavy-Duty
Gas Turbine and Aeroderivative equipment and transactional services, and increases at Nuclear Power services. RPO increased $32.4
billion (41%) from June 30, 2025, primarily at Gas Power due to increases in Heavy-Duty Gas Turbine and Aeroderivative equipment and
contractual services, and increases at Nuclear Power services and equipment, partially offset by Hydro Power equipment.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 29
Three months ended June 30 | Six months ended June 30 | ||||||||
SEGMENT REVENUES AND EBITDA | 2026 | 2025 | 2026 | 2025 | |||||
Gas Power | $4,427 | $3,911 | $8,493 | $7,516 | |||||
Nuclear Power | 817 | 649 | 1,575 | 1,310 | |||||
Hydro Power | 233 | 225 | 382 | 407 | |||||
Total segment revenues | $5,477 | $4,785 | $10,449 | $9,234 | |||||
Equipment | $1,965 | $1,504 | $3,851 | $2,996 | |||||
Services | 3,512 | 3,280 | 6,598 | 6,238 | |||||
Total segment revenues | $5,477 | $4,785 | $10,449 | $9,234 | |||||
Segment EBITDA | $1,031 | $785 | $1,842 | $1,303 | |||||
Segment EBITDA margin | 18.8 | % | 16.4 | % | 17.6 | % | 14.1 | % | |
For the three months ended June 30, 2026, segment revenues were up $0.7 billion (14%) and segment EBITDA was up $0.2 billion
(31%).
Segment revenues increased $0.7 billion (14%) organically*, primarily at Gas Power equipment due to higher Aeroderivative unit deliveries
and favorable pricing, and increases at Nuclear Power and Gas Power services due to higher volume and favorable pricing.
Segment EBITDA increased $0.3 billion (37%) organically*, primarily at Gas Power due to higher volume and favorable pricing, partially
offset by the impact of inflation.
For the six months ended June 30, 2026, segment revenues were up $1.2 billion (13%) and segment EBITDA was up $0.5 billion
(41%).
Segment revenues increased $1.1 billion (12%) organically*, primarily at Gas Power equipment due to higher Heavy-Duty Gas Turbine and
Aeroderivative deliveries and favorable pricing, and increases at Gas Power and Nuclear Power services due to higher parts volume and
favorable pricing.
Segment EBITDA increased $0.6 billion (46%) organically*, primarily at Gas Power due to favorable pricing, higher volume, and increased
productivity, partially offset by the impact of inflation and additional expenses to support investments at Gas Power and Nuclear Power.
ELECTRIFICATION
RPO | June 30, 2026 | December 31, 2025 | June 30, 2025 |
Equipment | $40,589 | $30,508 | $23,950 |
Services | 3,974 | 3,734 | 3,168 |
Total RPO | $44,563 | $34,242 | $27,118 |
RPO as of June 30, 2026 increased $10.3 billion (30%) from December 31, 2025, primarily due to the acquisition of Prolec GE and demand
for switchgear and transformers at Power Transmission, and demand for alternating current substation solutions at Grid Systems
Integration. RPO increased $17.4 billion (64%) from June 30, 2025, primarily due to the acquisition of Prolec GE and demand for
switchgear and transformers at Power Transmission, demand for alternating current substation solutions and high-voltage direct current
solutions at Grid Systems Integration, and synchronous condensers at Power Conversion & Storage.
Three months ended June 30 | Six months ended June 30 | |||||||
SEGMENT REVENUES AND EBITDA | 2026 | 2025 | 2026 | 2025 | ||||
Power Transmission | $1,877 | $759 | $3,256 | $1,451 | ||||
Grid Systems Integration | 806 | 579 | 1,497 | 968 | ||||
Power Conversion & Storage | 539 | 411 | 1,016 | 792 | ||||
Grid Automation & Software | 416 | 412 | 827 | 790 | ||||
Total segment revenues | $3,637 | $2,162 | $6,597 | $4,001 | ||||
Equipment | $3,130 | $1,673 | $5,631 | $3,065 | ||||
Services | 507 | 488 | 966 | 937 | ||||
Total segment revenues | $3,637 | $2,162 | $6,597 | $4,001 | ||||
Segment EBITDA | $671 | $314 | $1,200 | $519 | ||||
Segment EBITDA margin | 18.4 | % | 14.5 | % | 18.2 | % | 13.0 | % |
For the three months ended June 30, 2026, segment revenues were up $1.5 billion (68%) and segment EBITDA was up $0.4 billion.
Segment revenues increased $0.6 billion (29%) organically*, primarily at Power Transmission due to increased volume in switchgear and
transformers, and at Grid Systems Integration due to increased volume in alternating current substation solutions and high-voltage direct
current solutions.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 30
Segment EBITDA increased $0.3 billion organically*, primarily due to volume, productivity, and favorable price at Power Transmission and
Power Conversion & Storage.
For the six months ended June 30, 2026, segment revenues were up $2.6 billion (65%) and segment EBITDA was up $0.7 billion.
Segment revenues increased $1.1 billion (29%) organically*, primarily at Power Transmission due to increased volume in switchgear and
transformers, and at Grid Systems Integration due to increased volume in alternating current substation solutions and high-voltage direct
current solutions.
Segment EBITDA increased $0.5 billion organically*, primarily due to volume, productivity, and favorable price at Power Transmission and
Grid Systems Integration.
WIND
Three months ended June 30 | Six months ended June 30 | ||||
Onshore and Offshore Wind orders in units | 2026 | 2025 | 2026 | 2025 | |
Wind Turbines | 147 | 381 | 293 | 404 | |
Repower Units | — | 205 | 49 | 205 | |
Wind Turbine and Repower Units Gigawatts | 0.6 | 1.6 | 1.2 | 1.8 | |
Three months ended June 30 | Six months ended June 30 | ||||
Onshore and Offshore Wind sales in units | 2026 | 2025 | 2026 | 2025 | |
Wind Turbines | 336 | 351 | 490 | 627 | |
Repower Units | 27 | 156 | 27 | 286 | |
Wind Turbine and Repower Units Gigawatts | 1.4 | 1.7 | 2.0 | 3.0 | |
RPO | June 30, 2026 | December 31, 2025 | June 30, 2025 |
Equipment | $8,197 | $9,112 | $9,731 |
Services | 12,191 | 12,518 | 12,777 |
Total RPO | $20,388 | $21,630 | $22,508 |
RPO as of June 30, 2026 decreased $1.2 billion (6%) from December 31, 2025 and decreased $2.1 billion (9%) from June 30, 2025,
primarily due to a decrease at Offshore Wind as we continue to execute on our contracts and at Onshore Wind due to a decrease in orders
primarily in North America.
Three months ended June 30 | Six months ended June 30 | ||||||||
SEGMENT REVENUES AND EBITDA | 2026 | 2025 | 2026 | 2025 | |||||
Onshore Wind | $1,721 | $2,020 | $2,908 | $3,665 | |||||
Offshore Wind | 305 | 225 | 551 | 430 | |||||
Total segment revenues | $2,026 | $2,245 | $3,459 | $4,095 | |||||
Equipment | $1,395 | $1,797 | $2,284 | $3,209 | |||||
Services | 632 | 448 | 1,175 | 886 | |||||
Total segment revenues | $2,026 | $2,245 | $3,459 | $4,095 | |||||
Segment EBITDA | $(275) | $(165) | $(657) | $(312) | |||||
Segment EBITDA margin | (13.6) | % | (7.3) | % | (19.0) | % | (7.6) | % | |
For the three months ended June 30, 2026, segment revenues were down $0.2 billion (10%) and segment EBITDA was down $0.1
billion (67%).
Segment revenues decreased $0.2 billion (11%) organically*, primarily at Onshore Wind equipment due to lower deliveries, partially offset
by increases at Onshore Wind services due to increased transactional volume and Offshore Wind due to higher deliveries and installations.
Segment EBITDA decreased $0.1 billion (79%) organically*, primarily at Onshore Wind due to lower equipment deliveries and at Offshore
Wind due to higher project costs, partially offset by lower costs at Onshore Wind services.
For the six months ended June 30, 2026, segment revenues were down $0.6 billion (16%) and segment EBITDA was down $0.3
billion.
Segment revenues decreased $0.7 billion (17%) organically*, primarily at Onshore Wind equipment due to lower deliveries, partially offset
by increases at Onshore Wind services due to increased transactional volume and Offshore Wind due to higher deliveries and installations.
Segment EBITDA decreased $0.3 billion organically*, primarily at Onshore Wind due to lower equipment deliveries and the impact of tariffs,
and at Offshore Wind due to higher contract losses, partially offset by lower costs at Onshore Wind services.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 31
OTHER INFORMATION
Gross Profit and Gross Margin. Gross profit was $2.4 billion and $1.8 billion for the three months ended and $4.1 billion and $3.3 billion
for the six months ended June 30, 2026 and 2025, respectively. Gross margin was 21.3% and 20.3% for the three months ended and
20.3% and 19.3% for the six months ended June 30, 2026 and 2025, respectively. The increase in gross profit for the quarter was due to an
increase at Electrification due to volume, productivity, and favorable price at Power Transmission and Power Conversion & Storage; and at
Power due to higher volume and favorable pricing at Gas Power, partially offset by the impact of inflation; partially offset by a decrease at
Wind primarily at Onshore Wind due to lower equipment deliveries and at Offshore Wind due to higher project costs. The increase in gross
profit for the year was due to increases at Power and Electrification, partially offset by a decrease at Wind due to the reasons described
above.
Selling, General, and Administrative. Selling, general, and administrative costs were $1.4 billion and $1.2 billion for the three months
ended and $2.7 billion and $2.4 billion for the six months ended and comprised 12.4% and 13.0% of revenues for the three months ended
and 13.1% and 13.8% of revenues for the six months ended June 30, 2026 and 2025, respectively. Selling, general, and administrative
costs increased $0.2 billion for the quarter and $0.3 billion for the year, primarily due to labor inflation and incremental costs associated with
the acquisition of Prolec GE, partially offset by cost reduction activities.
Restructuring Charges and Separation Costs. We continuously evaluate our cost structure and are implementing several restructuring
and process transformation actions considered necessary to simplify our organizational structure. In connection with the separation from
General Electric Company (GE), we incurred and will continue to incur certain one-time separation costs. See Note 23 in the Notes to the
consolidated financial statements for further information.
Interest and Other Financial Income (Charges) – Net. Interest and other financial income (charges) – net was $0.1 billion and less than
$0.1 billion in income for the three months ended and $0.1 billion and $0.1 billion in income for the six months ended June 30, 2026 and
2025, respectively. The increase in income for the quarter and for the year was primarily due to a higher average balance of invested funds,
partially offset by higher interest expense on borrowings. The primary components of net interest and other financial income (charges) are
fees on cash management activities, interest on borrowings, and interest earned on cash balances and short-term investments.
Income Taxes. Our effective tax rate was 29.8% for the three months ended June 30, 2026. The effective tax rate was higher than the U.S.
statutory rate of 21% primarily due to updated estimates of the purchase price allocation on the acquisition of Prolec GE and losses
providing no tax benefit in certain jurisdictions, partially offset by an income tax benefit from stock-based compensation.
Our effective tax rate was 10.5% for the six months ended June 30, 2026. The effective tax rate was lower than the U.S. statutory rate of
21% primarily due to a nontaxable gain on the acquisition of Prolec GE and an income tax benefit from stock-based compensation, partially
offset by losses providing no tax benefit in certain jurisdictions.
Our effective tax rate was 23.7% and 22.6% for the three and six months ended June 30, 2025, respectively. The effective tax rate was
higher than the U.S. statutory rate of 21% in both periods primarily due to losses providing no tax benefit in certain jurisdictions, partially
offset by an income tax benefit from stock-based compensation.
CAPITAL RESOURCES AND LIQUIDITY. As of June 30, 2026, our Cash, cash equivalents, and restricted cash was $13.1 billion,
$0.4 billion of which was restricted use cash. In addition, we have access to a $3.0 billion committed revolving credit facility (Revolving
Credit Facility). See “—Capital Resources and Liquidity—Debt” for further information. We believe our unrestricted cash, cash equivalents,
future cash flows generated from operations, and committed credit facility will be responsive to the needs of our current and planned
operations for at least the next 12 months.
On December 9, 2025, we announced that the Board of Directors had authorized an increase of our repurchase program to $10.0 billion of
common stock repurchases, from the prior authorization of $6.0 billion, which was announced on December 10, 2024. We repurchased 2.5
million shares and 4.3 million shares for $2.3 billion and $3.6 billion during the three months and six months ended June 30, 2026,
respectively. Cumulatively we have repurchased $7.0 billion of common stock over the life of the program. Although we intend to fund
priorities that profitably grow the Company and return capital to stockholders through dividends and share repurchases as part of our
capital allocation strategy, we are not obligated to pay cash dividends or to repurchase a specified or any number or dollar value of shares
under our share repurchase program. The declaration of any future dividends is at the discretion of our Board of Directors and will be based
on our earnings, financial condition, cash requirements, prospects, and other factors. The amount and timing of any future share
repurchases under our share repurchase program will be based on the trading price and volume of our shares of common stock and other
market factors as well as our earnings, financial condition, cash requirements, prospects, alternative uses for our cash, and other factors.
Consolidated Statement of Cash Flows. The most significant source of cash flows from operations is customer-related activities, the
largest of which is collecting cash resulting from equipment or services sales. The most significant operating uses of cash are to pay our
suppliers, employees, and tax authorities. We measure ourselves on a free cash flow* basis. We believe that free cash flow* provides
management and investors with an important measure of our ability to generate cash on a normalized basis.
Free cash flow* also provides insight into our ability to produce cash subsequent to fulfilling our capital obligations; however, free cash flow*
does not delineate funds available for discretionary uses as it does not deduct the payments required for certain investing and financing
activities.
We typically invest in property, plant, and equipment (PP&E) over multiple periods to support new product introductions and increases in
manufacturing capacity and to perform ongoing maintenance of our manufacturing operations. We believe that while PP&E expenditures
will fluctuate period to period, we will need to maintain a material level of net PP&E spend to maintain ongoing operations and growth of the
business.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 32
Six months ended June 30 | ||
FREE CASH FLOW (NON-GAAP) | 2026 | 2025 |
Cash from (used for) operating activities (GAAP) | $10,680 | $1,528 |
Add: Gross additions to property, plant, and equipment and internal-use software | (783) | (359) |
Free cash flow (Non-GAAP) | $9,897 | $1,169 |
Cash from operating activities was $10.7 billion and $1.5 billion for the six months ended June 30, 2026 and 2025, respectively.
Cash from operating activities increased by $9.2 billion in 2026 compared to 2025, primarily driven by: an increase from contract liabilities
and current deferred income of $11.8 billion, primarily due to higher down payments on orders and slot reservation agreements at Power,
higher down payments at Electrification, and lower revenue recognition at Wind; higher net income (after adjusting for depreciation of
PP&E, amortization of intangible assets, (gains) losses on purchases and sales of business interests, and provision (benefit) for income
taxes) of $1.0 billion; an increase from accounts payable of $0.7 billion, driven by growth at Electrification and Power, including a higher
impact related to decreases in prepayments across all segments; and an increase from current contract assets of $0.3 billion driven by
lower net revenue recognition at Wind; partially offset by a decrease from current receivables of $(1.9) billion, primarily due to higher net
billings and increases in supplier advances across all segments; a decrease from inventories of $(0.9) billion, primarily due to higher build
at Power and fewer liquidations at Wind; higher income taxes paid of $(0.9) billion; a decrease from All other operating activities of $(0.5)
billion, primarily due to an increase in realized gains related to the sale of our remaining interest in China XD Electric Co., Ltd. and a higher
decrease in employee benefit liabilities; and a voluntary contribution of $(0.5) billion to the GE Energy Pension Plan in 2026 that reduced
our pension liability.
Cash from operating activities of $10.7 billion for the six months ended June 30, 2026 included a $11.7 billion inflow from changes in
working capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of
$13.7 billion, driven by down payments on orders and slot reservation agreements at Power, and down payments at Electrification;
accounts payable and equipment project payables of $0.9 billion, due to purchases of materials outpacing disbursements, including a
decrease in prepayments at Electrification and Power, partially offset by higher disbursements at Wind; partially offset by inventories of
$(1.7) billion, due to higher volume to support fulfillment and future deliveries primarily at Power and Wind; current receivables of $(0.8)
billion, driven by net billings and an increase in supplier advances across all segments; and current contract assets of $(0.4) billion, driven
by equipment revenue recognition exceeding billings at Electrification and Power.
Cash from operating activities of $1.5 billion for the six months ended June 30, 2025 included a $1.6 billion inflow from changes in working
capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of $1.9
billion, driven by down payments on orders and slot reservation agreements at Power, and down payments and collections at
Electrification, partially offset by revenue recognition at Wind; and current receivables of $1.0 billion, driven by collections outpacing billings
in Power, including a decrease in past dues, and collections outpacing billings and a decrease in supplier advances at Wind; partially offset
by inventories of $(0.9) billion, primarily due to volume across all businesses to support fulfillment and deliveries expected in 2025 and
2026; and current contract assets of $(0.6) billion, driven by revenue recognition exceeding billings, primarily in Wind and Power.
Cash from (used for) investing activities was $(4.1) billion and $(0.2) billion for the six months ended June 30, 2026 and 2025,
respectively. Cash used for investing activities increased by $3.8 billion in 2026 compared to 2025 primarily driven by: net cash paid for the
acquisition of the remaining 50% stake of Prolec GE of $4.9 billion (net of cash acquired); and higher additions to PP&E and internal-use
software of $0.4 billion; partially offset by proceeds from sales of our remaining interest in China XD Electric Co., Ltd. in 2026 of $0.7 billion,
which is included in All other investing activities; proceeds (net of cash transferred) from the sale of our Proficy business of $0.6 billion; and
higher dispositions of PP&E of $0.2 billion. Cash used for additions to PP&E and internal-use software, which is a component of free cash
flow*, was $0.8 billion and $0.4 billion for the six months ended June 30, 2026 and 2025, respectively.
Cash from (used for) financing activities was $(2.3) billion and $(1.9) billion for the six months ended June 30, 2026 and 2025,
respectively. Cash used for financing activities increased by $0.4 billion in 2026 compared to 2025 primarily driven by: higher cash
settlements for share repurchases of $2.1 billion; the repayment of debt acquired in the Prolec GE transaction of $0.4 billion and higher
withholding tax payments on equity stock awards of $0.3 billion, which are both included in All other financing activities; and higher
dividends paid of $0.1 billion; partially offset by net cash from newly issued long-term debt of $2.6 billion in 2026.
Material Cash Requirements. In the normal course of business, we enter into contracts and commitments that oblige us to make
payments in the future. See Notes 7 and 22 in the Notes to the consolidated financial statements for further information regarding our
obligations under lease and guarantee arrangements as well as our investment commitments. See Note 13 in the Notes to the consolidated
financial statements for further information regarding material cash requirements related to our pension obligations.
Debt. Total debt, excluding finance leases, was $2.6 billion and less than $0.1 billion as of June 30, 2026 and December 31, 2025,
respectively, an increase of $2.5 billion, primarily due to long-term debt issued on February 4, 2026. We have a $3.0 billion Revolving Credit
Facility to fund near-term intra-quarter working capital needs as they arise. In addition, we have a $3.0 billion committed trade finance
facility (Trade Finance Facility, and together with the Revolving Credit Facility, the Credit Facilities). The Trade Finance Facility has not
been and is not expected to be utilized, and does not contribute to direct liquidity. We believe that our financing arrangements, future cash
from operations, and access to capital markets will provide adequate resources to fund our future cash flow needs. For more information
about the Credit Facilities, refer to our Current Report on Form 8-K, filed with the SEC on April 2, 2024, and see Note 14 in the Notes to the
consolidated financial statements.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 33
Credit Ratings and Conditions. Interest and fees payable by us under the Revolving Credit Facility are determined in part by our credit
ratings, and our credit ratings and market conditions will influence any future debt financing and may impact our commercial activities and
arrangements. Standard and Poor's Global Ratings (S&P) and Fitch Ratings (Fitch) have issued credit ratings for the Company. Our credit
ratings as of the date of this filing are set forth in the following table.
S&P | Fitch | |
Outlook | Positive | Positive |
Long-term | BBB | BBB+ |
We are disclosing our credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds
and access to credit. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each
rating should be evaluated independently of any other rating. See Item 1A. “Risk Factors—Risks Related to our Customers and Industry
Dynamics” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for a description of some potential
consequences for our credit ratings.
If we are unable to maintain investment grade ratings, we could face significant challenges in being awarded new contracts, substantially
increasing financing and hedging costs, and refinancing risks as well as substantially decreasing the availability of credit. As of June 30,
2026, we estimated an insignificant liquidity impact of a ratings downgrade below investment grade.
Parent Company Credit Support. Prior to the separation from GE, to support GE Vernova businesses in selling products and services
globally, GE often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments
supporting the performance of its subsidiary legal entities transacting directly with customers, in addition to providing similar credit support
for noncustomer related activities of GE Vernova (collectively, the GE credit support). We are working to seek novation or assignment of GE
credit support, the majority of which relates to parent company guarantees, associated with GE Vernova legal entities from GE to GE
Vernova. For GE credit support that remained outstanding at the separation from GE, GE Vernova is obligated to use reasonable best
efforts to terminate or replace, and obtain a full release of GE’s obligations and liabilities under, all such credit support. GE Vernova pays
quarterly fees to GE which are determined by amounts associated with GE credit support. GE Vernova is subject to other contractual
restrictions and requirements while GE continues to be obligated under such credit support on behalf of GE Vernova. In addition, while GE
will remain obligated under the contract or instrument, GE Vernova will be obligated to indemnify GE for credit support related payments
that GE is required to make and possible related costs.
As of June 30, 2026, we estimated GE Vernova RPO and other obligations that relate to GE credit support to be approximately $7.0 billion,
an over 80% reduction since the separation. We expect approximately $5 billion of the RPO related to GE credit support obligations to
contractually mature by December 31, 2029. The underlying obligations are predominantly customer contracts that GE Vernova performs in
the normal course of its business. We have no known instances historically where payments or performance from GE were required under
parent company guarantees relating to GE Vernova customer contracts.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS. In November 2024, the Financial Accounting Standards Board (FASB)
issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure about specific
types of expenses included in the expense captions presented on the face of the income statement as well as disclosure about selling
expenses. The ASU is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December
15, 2027, with early adoption permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our
consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):
Targeted improvements to the Accounting for Internal-Use Software. The ASU updates the accounting for internal-use software by
eliminating the concept of development stages. Under this updated guidance, software costs are capitalized once management has
authorized and committed funding to the project, and it is probable the project will be completed and the software used as intended. The
ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual periods. We are currently
evaluating the impact that this guidance will have on our consolidated financial statements.
In December 2025, the FASB issued ASU No. 2025-10, Accounting for Government Grants Received by Business Entities. The new
standard establishes guidance on the recognition, measurement, and presentation of government grants received by business entities. The
ASU is effective for fiscal years beginning after December 15, 2028. We are currently evaluating the impact that this guidance will have on
our consolidated financial statements.
CRITICAL ACCOUNTING ESTIMATES. To prepare our consolidated financial statements in accordance with U.S. GAAP,
management makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, including our contingent
liabilities, as of the date of our financial statements and the reported amounts of our revenues and expenses during the reporting periods.
Our actual results may differ from these estimates. We consider estimates to be critical (i) if we are required to make assumptions about
material matters that are uncertain at the time of estimation or (ii) if materially different estimates could have been made or it is reasonably
likely that the accounting estimate will change from period to period. See Item 7. "Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Critical Accounting Estimates" and Note 2 in the Notes to the audited consolidated and combined
financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for additional discussion of
accounting policies and critical accounting estimates.
Except as described below, there have been no material changes to our critical accounting estimates as compared to the critical accounting
estimates disclosed in our audited consolidated and combined financial statements and notes thereto for the year ended December 31,
2025 in our Annual Report on Form 10-K.
2026 2Q FORM 10-Q 34
Business Combinations. The results of a business acquired in a business combination are included in our consolidated financial
statements as of the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at
their estimated fair values on the acquisition date, which may be considered preliminary and subject to adjustment during the measurement
period, which is up to one year from the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities
assumed is recognized as goodwill.
We perform valuations of assets acquired and liabilities assumed and allocate the purchase price to the respective assets and liabilities.
Determining the fair value of assets acquired and liabilities assumed requires significant judgment and estimates, including the selection of
valuation methodologies, estimates of future revenue, costs, and cash flows, discount rates, royalty rates, and selection of comparable
companies. We engage third-party valuation specialists to assist in concluding on fair value measurements in connection with determining
fair values of assets acquired and liabilities assumed in a business combination. The resulting fair values and useful lives assigned to
acquisition-related intangible assets impact the amount and timing of future amortization expense.
These estimates are inherently uncertain and unpredictable, and if different estimates were used the purchase price for the acquisition
could be allocated to the acquired assets and liabilities differently from the allocation that we have made. In addition, unanticipated events
and circumstances may occur which may affect the accuracy or validity of such estimates, and if such events occur, we may be required to
record a charge against the value ascribed to an acquired asset, an increase in the amounts recorded for assumed liabilities, or an
impairment of some or all of the goodwill. See Note 8 in the Notes to the consolidated financial statements for further information.
NON-GAAP FINANCIAL MEASURES. The non-GAAP financial measures presented in this Quarterly Report on Form 10-Q are
supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition and operating
results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding
U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or
are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures
provide investors greater transparency to the information used by management for its operational decision-making and allow investors to
see our results “through the eyes of management.” We further believe that providing this information assists our investors in understanding
our operating performance and the methodology used by management to evaluate and measure such performance. When read in
conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying
businesses and can be used by management as one basis for financial, operational, and planning decisions. Finally, these measures are
often used by analysts and other interested parties to evaluate companies in our industry.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by
other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from
company to company. In order to compensate for these and the other limitations discussed below, management does not consider these
measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers
should review the reconciliations below, and above with respect to free cash flow, and should not rely on any single financial measure to
evaluate our business. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable
U.S. GAAP financial measures follow.
We believe the organic measures presented below provide management and investors with a more complete understanding of underlying
operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions, and foreign currency,
which includes translational and transactional impacts, as these activities can obscure underlying trends.
ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP) | |||||||||||
Revenue(a) | Segment EBITDA | Segment EBITDA margin | |||||||||
Three months ended June 30 | 2026 | 2025 | V% | 2026 | 2025 | V% | 2026 | 2025 | V pts | ||
Power (GAAP) | $5,477 | $4,785 | 14% | $1,031 | $785 | 31% | 18.8% | 16.4% | 2.4pts | ||
Less: Acquisitions | — | — | — | — | |||||||
Less: Business dispositions | — | — | — | — | |||||||
Less: Foreign currency effect | 33 | 4 | (9) | 27 | |||||||
Power organic (Non-GAAP) | $5,444 | $4,781 | 14% | $1,040 | $758 | 37% | 19.1% | 15.9% | 3.2pts | ||
Electrification (GAAP) | $3,637 | $2,162 | 68% | $671 | $314 | F | 18.4% | 14.5% | 3.9pts | ||
Less: Acquisitions | 860 | — | 183 | — | |||||||
Less: Business dispositions | — | 44 | — | 52 | |||||||
Less: Foreign currency effect | 50 | 12 | (34) | 8 | |||||||
Electrification organic (Non-GAAP) | $2,727 | $2,106 | 29% | $522 | $254 | F | 19.1% | 12.1% | 7.0pts | ||
Wind (GAAP) | $2,026 | $2,245 | (10)% | $(275) | $(165) | (67)% | (13.6)% | (7.3)% | (6.3)pts | ||
Less: Acquisitions | — | — | — | — | |||||||
Less: Business dispositions | — | — | — | — | |||||||
Less: Foreign currency effect | 12 | (16) | (23) | (25) | |||||||
Wind organic (Non-GAAP) | $2,014 | $2,261 | (11)% | $(252) | $(141) | (79)% | (12.5)% | (6.2)% | (6.3)pts | ||
(a) Includes intersegment sales of $44 million and $92 million for the three months ended June 30, 2026 and 2025, respectively. See Note
24 in the Notes to the consolidated financial statements for further information.
2026 2Q FORM 10-Q 35
ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP) | |||||||||||
Revenue(a) | Segment EBITDA | Segment EBITDA margin | |||||||||
Six months ended June 30 | 2026 | 2025 | V% | 2026 | 2025 | V% | 2026 | 2025 | V pts | ||
Power (GAAP) | $10,449 | $9,234 | 13% | $1,842 | $1,303 | 41% | 17.6% | 14.1% | 3.5pts | ||
Less: Acquisitions | — | — | 2 | 1 | |||||||
Less: Business dispositions | — | — | — | — | |||||||
Less: Foreign currency effect | 96 | 7 | (12) | 33 | |||||||
Power organic (Non-GAAP) | $10,352 | $9,227 | 12% | $1,851 | $1,269 | 46% | 17.9% | 13.8% | 4.1pts | ||
Electrification (GAAP) | $6,597 | $4,001 | 65% | $1,200 | $519 | F | 18.2% | 13.0% | 5.2pts | ||
Less: Acquisitions | 1,346 | — | 296 | — | |||||||
Less: Business dispositions | 26 | 82 | 54 | 100 | |||||||
Less: Foreign currency effect | 179 | 13 | (10) | 9 | |||||||
Electrification organic (Non-GAAP) | $5,045 | $3,906 | 29% | $860 | $410 | F | 17.0% | 10.5% | 6.5pts | ||
Wind (GAAP) | $3,459 | $4,095 | (16)% | $(657) | $(312) | U | (19.0)% | (7.6)% | (11.4)pts | ||
Less: Acquisitions | — | — | — | — | |||||||
Less: Business dispositions | — | — | — | — | |||||||
Less: Foreign currency effect | 59 | (24) | (77) | (39) | |||||||
Wind organic (Non-GAAP) | $3,399 | $4,119 | (17)% | $(580) | $(273) | U | (17.1)% | (6.6)% | (10.5)pts | ||
(a) Includes intersegment sales of $76 million and $206 million for the six months ended June 30, 2026 and 2025, respectively. See Note
24 in the Notes to the consolidated financial statements for further information.
Three months ended June 30 | Six months ended June 30 | ||||||
ORGANIC REVENUES (NON-GAAP) | 2026 | 2025 | V% | 2026 | 2025 | V% | |
Total revenues (GAAP) | $11,104 | $9,111 | 22% | $20,442 | $17,143 | 19% | |
Less: Acquisitions | 860 | — | 1,346 | — | |||
Less: Business dispositions | — | 44 | 26 | 82 | |||
Less: Foreign currency effect | 95 | (1) | 335 | (3) | |||
Organic revenues (Non-GAAP) | $10,149 | $9,068 | 12% | $18,735 | $17,065 | 10% | |
Three months ended June 30 | Six months ended June 30 | ||||||
EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) | 2026 | 2025 | V% | 2026 | 2025 | V% | |
Total equipment revenues (GAAP) | $6,459 | $4,894 | 32% | $11,713 | $9,091 | 29% | |
Less: Acquisitions | 834 | — | 1,303 | — | |||
Less: Business dispositions | — | — | — | — | |||
Less: Foreign currency effect | 55 | (6) | 204 | (13) | |||
Equipment organic revenues (Non-GAAP) | $5,570 | $4,900 | 14% | $10,206 | $9,104 | 12% | |
Total services revenues (GAAP) | $4,645 | $4,217 | 10% | $8,729 | $8,052 | 8% | |
Less: Acquisitions | 26 | — | 43 | — | |||
Less: Business dispositions | — | 44 | 26 | 82 | |||
Less: Foreign currency effect | 40 | 6 | 131 | 9 | |||
Services organic revenues (Non-GAAP) | $4,579 | $4,167 | 10% | $8,529 | $7,962 | 7% | |
We believe that Adjusted EBITDA* and Adjusted EBITDA margin*, which are adjusted to exclude the effects of unique and/or non-cash
items that are not closely associated with ongoing operations, provide management and investors with meaningful measures of our
performance that increase the period-to-period comparability by highlighting the results from ongoing operations and the underlying
profitability factors. We believe Adjusted organic EBITDA* and Adjusted organic EBITDA margin* provide management and investors with,
when considered with Adjusted EBITDA* and Adjusted EBITDA margin*, a more complete understanding of underlying operating results
and trends of established, ongoing operations by further excluding the effect of acquisitions, dispositions, and foreign currency, which
includes translational and transactional impacts, as these activities can obscure underlying trends. We believe these measures provide
additional insight into how our businesses are performing on a normalized basis. However, Adjusted EBITDA*, Adjusted organic EBITDA*,
Adjusted EBITDA margin* and Adjusted organic EBITDA margin* should not be construed as inferring that our future results will be
unaffected by the items for which the measures adjust.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 36
Three months ended June 30 | Six months ended June 30 | ||||||
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (NON- GAAP) | 2026 | 2025 | V% | 2026 | 2025 | V% | |
Net income (loss) (GAAP) | $649 | $492 | 32% | $5,398 | $756 | F | |
Add: Restructuring and other charges | 9 | 42 | 102 | 108 | |||
Add: (Gains) losses on purchases and sales of business interests(a) | 48 | — | (4,445) | (19) | |||
Add: Separation costs(b) | 38 | 34 | 61 | 80 | |||
Add: Non-operating benefit income | (119) | (110) | (253) | (225) | |||
Add: Depreciation and amortization(c) | 418 | 202 | 760 | 406 | |||
Add: Interest and other financial (income) charges – net(d)(e) | (73) | (41) | (100) | (97) | |||
Add: Provision (benefit) for income taxes(e) | 279 | 151 | 623 | 218 | |||
Adjusted EBITDA (Non-GAAP) | $1,250 | $770 | 62% | $2,146 | $1,227 | 75% | |
Net income (loss) margin (GAAP) | 5.8% | 5.4% | 0.4 pts | 26.4% | 4.4% | 22.0 pts | |
Adjusted EBITDA margin (Non-GAAP) | 11.3% | 8.5% | 2.8 pts | 10.5% | 7.2% | 3.3 pts | |
(a) Includes a pre-tax gain of $3,992 million in the six months ended June 30, 2026 related to the acquisition of the remaining 50% stake in Prolec GE from Xignux as a result of the remeasurement of our previously held equity interest to fair value and an expense of $35 million and $106 million for the impact of a fair value adjustment to Prolec GE inventory that was recorded in Cost of equipment in the three and six months ended June 30, 2026, respectively. Includes a pre-tax gain of $330 million related to the sale of our Proficy business in our Electrification segment in the six months ended June 30, 2026. Also includes realized (gains) losses related to the sale of our remaining interest in China XD Electric Co., Ltd, recorded in Net interest and investment income (loss) which is part of Other income (expense) - net. See Note 19 for further information. (b) Costs incurred in the separation from GE, including system implementations, advisory fees, one-time stock option grant, and other one-time costs. (c) Excludes depreciation and amortization expense related to Restructuring and other charges. Includes amortization of basis differences included in Equity method investment income (loss) which is part of Other income (expense) - net. (d) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business operations primarily with customers. (e) Excludes interest (income) expense of zero and zero and provision (benefit) for income taxes of $(3) million and $2 million for the three months ended June 30, 2026 and 2025, respectively, as well as excludes interest (income) expense of zero and $1 million and provision (benefit) for income taxes of $7 million and $4 million for the six months ended June 30, 2026 and 2025, respectively, related to our Financial Services business which, because of the nature of its investments, is measured on an after-tax basis. | |||||||
Three months ended June 30 | Six months ended June 30 | ||||||
ADJUSTED ORGANIC EBITDA AND ADJUSTED ORGANIC EBITDA MARGIN (NON-GAAP) | 2026 | 2025 | V% | 2026 | 2025 | V% | |
Adjusted EBITDA (Non-GAAP) | $1,250 | $770 | 62% | $2,146 | $1,227 | 75% | |
Less: Acquisitions | 183 | — | 298 | 1 | |||
Less: Business dispositions | — | 52 | 54 | 100 | |||
Less: Foreign currency effect | (73) | 10 | (124) | 2 | |||
Adjusted organic EBITDA (Non-GAAP) | $1,139 | $708 | 61% | $1,917 | $1,124 | 71% | |
Adjusted EBITDA margin (Non-GAAP) | 11.3% | 8.5% | 2.8 pts | 10.5% | 7.2% | 3.3 pts | |
Adjusted organic EBITDA margin (Non-GAAP) | 11.2% | 7.8% | 3.4 pts | 10.2% | 6.6% | 3.6 pts | |
See "—Capital Resources and Liquidity” for discussion of free cash flow*.
*Non-GAAP Financial Measure
2026 2Q FORM 10-Q 37
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. We are exposed to market risk
primarily from fluctuations of foreign currency exchange rates, interest rates, and commodity prices. These exposures are managed and
mitigated with the use of financial instruments, including derivatives contracts. We apply policies to manage these risks, including
prohibitions on speculative activities. The effects of foreign currency fluctuations on earnings were $(0.1) billion and less than $0.1 billion for
the three months ended and $(0.1) billion and less than $0.1 billion for the six months ended June 30, 2026 and 2025, respectively. See
Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2025 for more information about foreign exchange risk, interest rate risk, and commodity risk.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures. Under the supervision and with the participation of the Company's management,
including the Chief Executive Officer and Chief Financial Officer, the Company evaluated its disclosure controls and procedures as defined
in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that the Company's disclosure controls and procedures were effective as of June 30, 2026, and that the information required to
be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and
reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to
management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure.
Changes in Internal Control Over Financial Reporting. The Company continues to exit from various transition service agreements with
General Electric Company primarily related to information technology systems that impact financial reporting. Consequently, responsibility
for execution of related internal controls transfers to the Company, including certain general information technology controls in connection
with information technology environment changes.
On February 2, 2026, the Company completed the acquisition of the remaining 50% stake of Prolec GE. See Note 8 in the Notes to the
consolidated financial statements for further information. The Company is in the process of analyzing and evaluating the internal control
environment as it relates to the integration of Prolec GE, which may result in additions or changes to our internal control over financial
reporting. The Company will exclude Prolec GE’s operations from the scope of our annual assessment of the effectiveness of internal
control over financial reporting for the year ending December 31, 2026 in accordance with Securities and Exchange Commission guidance.
Such guidance permits management to omit an assessment of an acquired business’ internal control over financial reporting from
management’s assessment of internal control over financial reporting for a period not to exceed one year from the date of acquisition.
Other than these discussed in the preceding sentences, no change in the Company’s internal control over financial reporting occurred
during the quarter ended June 30, 2026, that materially affected, or is reasonably likely to materially affect, the Company's internal control
over financial reporting.
2026 2Q FORM 10-Q 38
PART II
ITEM 1. LEGAL PROCEEDINGS. See Note 22 in the Notes to the consolidated financial statements for information relating to legal
matters.
ITEM 1A. RISK FACTORS. We are subject to a number of risks that could materially and adversely affect our business, results of
operations, cash flows, financial condition, and/or future prospects, including those identified in Item 1A. "Risk Factors" in our Annual
Report on Form 10-K for the fiscal year ended on December 31, 2025.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. On December 9, 2025, we announced
that the Board of Directors had authorized an increase of our repurchase program to $10 billion of common stock repurchases, from the
prior authorization of $6 billion, which was announced on December 10, 2024. The repurchase program may be suspended or discontinued
at any time and does not have an expiration date. We repurchased 2.5 million shares for $2,350 million during the three months ended
June 30, 2026 under this authorization.
The following table summarizes the share repurchase activity for the three months ended June 30, 2026:
Total number of shares purchased (in thousands) | Average price paid per share | Total number of shares purchased as part of our share repurchase program (in thousands) | Approximate dollar value of shares that may yet be purchased under our share repurchase program (in millions) | |
April | 430 | $983.22 | 430 | $4,963 |
May | 459 | 1,040.01 | 459 | 4,487 |
June | 1,578 | 918.65 | 1,578 | 3,037 |
Total | 2,467 | $952.47 | 2,467 |
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None.
ITEM 4. MINE SAFETY DISCLOSURES. Not applicable.
ITEM 5. OTHER INFORMATION.
Director and Officer Trading Arrangements. None of our directors or officers (as defined in Rule 16a-1(f) under the Exchange
Act) adopted terminated
defined in Item 408(c) of Regulation S-K) during the three months ended June 30, 2026.
2026 2Q FORM 10-Q 39
ITEM 6. EXHIBITS.
2.1 Separation and Distribution Agreement, dated April 1, 2024, by and between General Electric Company and GE Vernova Inc. (incorporated by reference to Exhibit 2.1 of the registrant’s Current Report on Form 8-K filed with the SEC on April 2, 2024, File No. 001-41966).†+ | |
3.1 Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the registrant’s Current Report on Form 8-K filed with the SEC on April 2, 2024, File No. 001-41966). | |
3.2 Bylaws (incorporated by reference to Exhibit 3.2 of the registrant’s Current Report on Form 8-K filed with the SEC on April 2, 2024, File No. 001-41966). | |
31.1 Certification pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith). | |
31.2 Certification pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith). | |
32.1 Section 1350 certification (furnished herewith). | |
101.1 The following materials from GE Vernova Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, formatted in XBRL (eXtensible Business Reporting Language); (i) Consolidated Statement of Income (Loss) for the three and six months ended June 30, 2026 and 2025, (ii) Consolidated Statement of Financial Position at June 30, 2026 and December 31, 2025, (iii) Consolidated Statement of Cash Flows for the six months ended June 30, 2026 and 2025, (iv) Consolidated Statement of Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025, (v) Consolidated Statement of Changes in Equity for the three and six months ended June 30, 2026 and 2025, and (vi) Notes to Consolidated Financial Statements. | |
104.1 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.1). | |
† | Certain portions of this exhibit have been redacted pursuant to Item 601(b)(2)(ii) and Item 601(b)(10)(iv) of Regulation S-K, as applicable. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Commission upon its request. |
+ | Certain schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the Commission upon its request. |
2026 2Q FORM 10-Q 40
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
July 22, 2026 | /s/ Matthew J. Potvin | |
Date | Matthew J. Potvin Vice President, Controller and Chief Accounting Officer Principal Accounting Officer |