AI data center demand surges! GE Vernova Q1 orders up 71% year-on-year, free cash flow guidance raised by 40% | Earnings Report Highlights

GE Vernova’s performance in the first quarter of 2026 accelerated across the board, benefiting from the global expansion of long-cycle power demand and the investment boom in artificial intelligence data center infrastructure. The company's orders, profit margins, and cash flow all improved significantly, prompting an immediate upward revision of its full-year 2026 financial guidance. According to data released on April 22, first quarter orders reached $18.3 billion, an organic year-on-year growth of 71%. Adjusted EBITDA nearly doubled to $896 million, with the profit margin rising to 9.6%, up 390 basis points year-on-year. Free cash flow reached $4.8 billion—more than triple the previous year, and even exceeded the total for all of 2025. Backlog increased by over $13 billion quarter-on-quarter, climbing to about $163 billion. The guidance upgrade is particularly striking. Full-year free cash flow guidance was significantly raised from $5–5.5 billion to $6.5–7.5 billion. Adjusted EBITDA margin target was increased from 11%–13% to 12%–14%. Full-year revenue guidance was also slightly raised to $44.5–45.5 billion. CEO Scott Strazik stated that combined gas power backlog and slot reservation agreements have risen from 83GW to 100GW, and are expected to reach at least 110GW by year-end. Meanwhile, the company completed the acquisition of the remaining 50% stake in power transmission equipment supplier Prolec GE for about $5.3 billion, further strengthening its grid equipment portfolio. The Wind segment, however, continues to face headwinds due to tariff impacts and widening losses from offshore wind contracts, becoming the main drag on overall performance. GE Vernova shares surged over 4% in pre-market trading. Gas Power Orders Surge, Backlog Breaks 100GW The Power segment (mainly gas power) was the key growth engine for orders this quarter. This segment’s orders reached $10 billion, an organic year-on-year growth of 59%, mainly driven by improved gas turbine pricing and large nuclear power service orders. The company signed new gas equipment contracts totaling 21GW this quarter, including 19GW in slot reservation agreements and 2GW in firm orders. It also converted 6GW of existing slot reservations into firm orders, and completed delivery of 4GW worth of equipment. By quarter-end, total gas power equipment backlog and slot reservation agreements rose from 83GW to 100GW. The company expects this figure to reach at least 110GW by year-end, exceeding previous forecasts. Revenue for the Power segment came in at $5 billion, an organic year-on-year growth of 10%. Segment EBITDA margin reached 16.3%, up 470 basis points year-on-year, mainly thanks to price increases and higher delivery volume—but partially offset by inflationary pressures and increased investment in gas and nuclear power. Electrification Demand Explodes, Data Center Orders Surpass Last Year’s Total The Electrification segment delivered the strongest results. First quarter orders reached $7.1 billion, an organic year-on-year growth of 86%, with order-to-shipment ratio at about 2.5 times and rapidly accumulating backlogs. Revenue totaled $3 billion, up 61% year-on-year under US GAAP (including consolidated Prolec GE), with organic growth at 29%. Growth was driven by switchgear, transformers, and high-voltage direct current transmission solutions, and both North America and Asia saw increases. Scott Strazik specifically highlighted that data center equipment orders for the Electrification segment this quarter reached $2.4 billion, already surpassing the entire total for 2025. Benefitting from higher volume and prices and improved efficiency in Power Transmission and Grid Systems Integration, segment EBITDA margin rose to 17.8%, up a hefty 670 basis points year-on-year. Consolidation of Prolec GE further expanded the scale of the Electrification segment. As a result, Electrification equipment backlog reached $38.6 billion, an increase of 75% year-on-year, with Prolec GE contributing about $5 billion. Wind Under Pressure, Tariffs and Contract Losses Widen Losses The Wind segment remains the main drag on overall performance. Segment revenue for the quarter was $1.4 billion, down 23% year-on-year, mainly due to weak onshore wind order volumes in the first half of 2025, resulting in a sharp drop in deliveries this quarter. Segment EBITDA loss widened to $382 million, with a margin of -26.7%, down 1,880 basis points year-on-year. The main pressures stem from three areas: declining onshore wind equipment delivery volume, direct impacts from tariffs, and widening losses from offshore wind contracts. The latest full-year guidance maintains expectations for low double-digit organic revenue declines and about $400 million in full-year segment EBITDA losses for Wind. Notably, the company completed turbine installations for the Dogger Bank A offshore wind project in the UK and the Vineyard Wind offshore project in the US this quarter. Guidance Raised Across the Board; Free Cash Flow Midpoint Up Nearly 40% Driven by strong quarterly performance and accumulating business backlog, GE Vernova has raised its full-year 2026 financial guidance across the board: revenue guidance lifted from $44–45 billion to $44.5–45.5 billion; adjusted EBITDA margin from 11%–13% to 12%–14%; free cash flow from $5–5.5 billion to $6.5–7.5 billion, with the midpoint up nearly 40%. By segment, Power’s organic revenue growth guidance remains 16%–18%, but segment EBITDA margin guidance rises from 16%–18% to 17%–19%. Electrification segment revenue guidance increases from $13.5–14 billion to $14–14.5 billion (including about $3 billion from Prolec GE), and margin guidance goes up from 17%–19% to 18%–20%. CFO Ken Parks stated: "We have maintained a robust investment-grade balance sheet. Even after completing the Prolec GE acquisition and returning capital to shareholders, our cash balance has risen to $10.2 billion. Thanks to strong performance and continued business momentum, we are raising our guidance for 2026 revenues, adjusted EBITDA margin, and free cash flow." Risk Warning and Disclaimer The market involves risks; investment should be cautious. This article does not constitute personal investment advice, nor does it take into account individual users’ specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. Investing based on this content is your own responsibility.