GE Vernova raises 2026 outlook after Q1 orders jump 71%; backlog $163B

Transcript intelligence

What changed

Management raised its 2026 revenue, adjusted EBITDA margin and free cash flow guidance after Q1 orders jumped 71% YoY to $18.3 billion with a book-to-bill of roughly 2 and backlog reached $163 billion. The company also accelerated its backlog target to $200 billion by 2027, one year earlier than previously expected, and highlighted first EMS data-center order and SMR construction progress, while Wind remains pressured by tariffs.

Guidance delta

Raised. Management lifted 2026 guidance to revenue of $44.5-$45.5 billion, adjusted EBITDA margin of 12%-14%, and free cash flow of $6.5-$7.5 billion, and accelerated the backlog target to $200 billion by 2027, a year earlier than previously expected.

Key takeaways

• Q1 orders jumped 71% YoY to $18.3 billion, with a book-to-bill ratio of roughly 2.
• Backlog increased to $163 billion, with equipment backlog up 67% YoY.
• 2026 guidance raised: revenue $44.5-$45.5 billion, adjusted EBITDA margin 12%-14%, free cash flow $6.5-$7.5 billion.
• Significant progress on SMR projects and data-center solutions, supported by AI and Kaizen initiatives.
• Wind segment faces tariff pressure and soft U.S. equipment demand, but expects a second-half recovery.

Management priorities

• Reach 20 GW annualized Gas Power output by March 2026 and expand to 24 GW by 2028.
• Scale AI transformation projects from 13 to 26 initiatives.
• Commercialize the EMS product suite and release a solid-state transformer for hyperscalers in 2027.
• Continue capacity expansion with new factories in Shreveport, North Carolina, Wisconsin, Mexico and Brazil.
• Invest roughly 30% YoY more in R&D and CapEx to support innovation across Electrification and Power.