A：GE vernova a.s. highlighted second quarter 2026 organic revenue growth of 13% and an adjusted segment EBITDA margin expansion. The company grew its total backlog to $176 billion, with an expectation to reach $200 billion by the end of 2027. GE vernova a.s. also experienced service orders growth of 15% and equipment orders more than doubling, and saw a strong increase in margins. They expect to have at least 125 GW under contract by the end of the year.

A：The long cycle electric power industry is in the early stages of a multi-decades growth opportunity, and GE vernova a.s. is well positioned to create substantial value, with expectations for continued growth in their combined gigawatts under contract.

A：GE vernova a.s.'s backlog has grown from 44 to 53 GW, and their total gigawatts under contract have increased from 100 to 116 GW. The company now expects to have at least 125 GW under contract by the end of the year.

A：GE vernova a.s. is experiencing strong pricing across gas power equipment and services. First half 2026 equipment orders were priced more than 20% above the fourth quarter of 2025, and in the second quarter, they booked a higher dollar per kilowatt price due to a higher mix of error derivatives versus heavy-duty gas turbines and incremental combined cycle equipment.

A：Transactional orders at GE vernova a.s. are rising by double digits annually as customers invest in upgrades and greater scope and outages at higher prices, driven by electrification. The company sees this as a key indicator of robust demand across their customer base.

A：GE vernova a.s. completed an acquisition of a specialized team of engineers in early July to aid in the acceleration of robotics and automation deployment across GE. This small transaction is expected to improve productivity and deliver more for customers.

A：To meet the accelerating demand for gas power and electrification, the company is expanding production capacity through lean and capital-efficient investments in gas power, with plans for up to 28 GW of annual output. They have secured significant supply chain capacity and have a substantial backlog of orders, with over half of the 30 GW production slots already sold by the end of the year.

A：The Aero derivative services are contributing to future growth by significantly expanding the shop visit capacity and are poised to lead growth in high-margin services revenue well into the 2030s.

A：In onshore wind, there are opportunities for customers to repower existing projects with an estimated 10 GW of potential in the U.S. The company is also investing in nuclear energy by advancing the SMR (Small Modular Reactors) for industrialization at scale, with progress evident from ongoing projects and early agreements secured in Canada and the U.S.

A：In electrification, the company is making progress with solid state transformers (SST), having completed a 5 MW indoor prototype for hyperscalers and started development of a 6 MW outdoor model. Additionally, they are working on solutions like medium voltage uninterruptible power supply blocks to improve data centers' efficiency and resiliency.

A：During the second quarter, the company booked strong results with robust orders, growing backlog, revenues, margin expansion, and significant free cash flow generation. Key financial achievements include a 22% year-over-year increase in orders, a book-to-bill ratio slightly over 1.0, equipment and services growth, and a 61% year-over-year increase in adjusted EBITDA. Adjusted EBITDA margin expanded by 340 basis points, and the company generated $1.2 billion in adjusted EBITDA.

A：The company is driving sourcing savings and variable cost productivity using lean tools, standardizing and evaluating sourcing spend data, and negotiating approximately $600 million in savings on an additional $800 million of spend. These savings are expected to flow through in future periods to improve profitability.

A：The company is simplifying its portfolio by completing the disposition of its China XD grid business for about $600 million in pre-tax proceeds. It returned a substantial amount of cash to shareholders through share repurchases and dividends, with a total of $7 billion in share repurchases and a strong cash balance of approximately $10 billion. The company remains committed to maintaining a strong investment-grade balance sheet and is encouraged by its financial performance.

A：In the third quarter of 2023, the power segment is expected to continue with robust demand, strong revenue growth, and solid EBITDA margin expansion. Gas power equipment orders are anticipated to increase, with a projected 5% to 10% revenue growth and an EBITDA margin of approximately 15% to 18%, driven by volume, price, and productivity, while offsetting inflation and additional expenses for capacity and R&D investments.

A：The company expects continued solid equipment orders and healthy margins in the third quarter, with electrification revenues anticipated to be between $3.8 billion and $4 billion, marking a significant year-over-year increase. The projected EBITDA margin expansion is due to higher volume productivity and favorable pricing.

A：Challenges in the wind segment include a 40% decline in wind orders due to lower onshore equipment orders, primarily in North America, and difficulties in calling an inflection point in US orders due to permitting delays and tariff uncertainty. The team continues to focus on delivering onshore wind services and progress at Dogger Bank B installations.

A：The updated guidance for GE vernova includes continued year-over-year revenue growth and adjusted EBITDA margin expansion for the third quarter. Full-year 2026 revenue is now expected to be in the range of $45.5 to $46.5 billion, up from a previous expectation of $44.5 to $45.5 billion. The adjusted EBITDA margin guidance is maintained at 18% to 20%. The company also expects positive free cash flow, with an increased guidance of between $11.5 and $12.5 billion, up from $6.5 to $7.5 billion. The guidance includes an increase in research and development, and capital expenditures to support innovation and growth, as well as substantial completion of previously announced restructuring actions.

A：The revenue expectation for the electrification segment has been raised by a half a billion dollars to a range of $14.5 to $15 billion. The profitability is expected to improve with a continued Tru Ly EBITDA margin. Sequential growth in EBITDA is anticipated throughout the year, despite ongoing investments in capacity expansions and new products.

A：For full-year 2026, corporate costs are expected to be between $450 and $500 million, as the company continues investing in AI, robotics, and automation to drive productivity. In terms of free cash flow, the company expects it to be substantially higher in the first half of the year compared to the second half, due to the conversion of many slot reservation agreements into orders.

A：The company has delivered strong results in the first half of the year, driven by economic growth, grid modernization, and data center expansion. They have a solid foundation for further growth, with a focus on investing in technology, talent, and capacity expansions to meet growing customer demand. The company is also pursuing inorganic growth, particularly in electrification, while continuing to return capital to shareholders through buybacks and dividends.

A：The updated outlook on capacity additions includes the confirmation that the 30 GW by 2030 target is still on track and represents a new milestone. It is considered significant as it builds on the understanding that lean operations will become a factor over time, and the progression towards this target is essential for the company's future plans.

A：The Greenville project is on track to come online as expected in the third quarter. The start of the project, the delivery timeline, and the anticipated capacity increases are all in alignment with the previously discussed milestones.

A：The progress of the supply chain is crucial for meeting the next steps in capacity production. Clear evidence of this progress includes the arrival of castings and forgings for a production increase to 24 GW annualized by 2024. The company is also enhancing efficiency through lean operations and expanding automation within its existing factory footprint, which allows for additional capacity. These factors are expected to support the 30 GW target and further incremental supply output in the coming years.

A：Most of the 30 GW capacity is already under contract for this year, and over half of the 31 GW will be contracted by the end of the year. This indicates a strong commitment from stakeholders and a solid foundation for the projected growth. Future projections suggest continued robust demand, with active discussions for additional capacity beyond 2030.

A：The long-term capacity requirements for the services business are driven by the need to support operational activities such as base load running of units and the requirement to fulfill service revenue obligations every four years when these units undergo major outages. This necessity shapes the investment strategy and ensures that the company can meet future demands and service revenue needs.

A：International opportunities are a key driver for capacity additions, with a strong pipeline of projects in Taiwan, Saudi Arabia, and ongoing discussions in Mexico and Southeast Asia. Notably, there is a growing focus on Southeast Asian EPC capabilities to utilize gas build-out in other parts of the world. The company has secured contracts in Qatar and is seeing healthy demand globally.

A：The 60 GW capacity increase is being achieved through the installation of existing machines and some labor ramp-up. The capital-light strategy involves using the existing industrial footprint to its fullest extent, adding incremental machines to support the growth. Future project bookings are robust, with active discussions for capacity beyond 2030, although precise timing for larger commitments further out is still under evaluation. As of the end of the year, the company is expected to be more than halfway contracted, with a solid foundation for continued growth in subsequent years.

A：The company has been investing in labor to support the transition, hiring and training new workers alongside the existing workforce to ensure that trained personnel are available as the incremental capacity comes online, which has helped maintain productivity and see margin expansion despite the early stages of underutilization.

A：The company has received more than $5 billion in new orders for data centers, which is significantly higher than the previous guidance of 200 million to 300 million per megawatt entitlement. The potential revenue from these orders is expected to exceed the annual electrification revenue projection of $4 billion to $5 billion by the end of the year, especially considering the inclusion of medium voltage uninterruptible power supply (M UPS) and other products in the current scope, which could double the current entitlement scope per gigawatt.

A：The company has made real progress with solid state transformers and solid oxide fuel cells, as indicated by the physical build-out of a 5 MW solid state transformer last week and its delivery to the customer later in the year. Discussions about medium voltage uninterruptible power supply blocks have also been encouraging. The company is in the process of building an automated line for fuel cells and has established test labs to validate the durability and performance, aiming to have a clearer understanding by the end of the year. In terms of solid oxide fuel cells, technology validation continues to be the focus, but there is progress and commercial discussions are anticipated to start in 2027.

A：The company expects to continue growing its contracted gigawatts of gas turbines on an order basis beyond the current year. With the current order book sitting at 116 GW, it is forecasted to end the year with at least 125 GW. The growth outlook for the next year and a half is positive, anticipating the shipping of over 20 GW annually for the second half of the current year and the following year, based on the ramp-up and the existing pipeline. Factors influencing the growth include the timing of customer contracts and the ability to secure EPC commitments for transitioning orders from slot reservation agreements. The company is confident in continuing to grow the contracted backlog for the near future, even with higher output, and is monitoring the progress closely.

A：The increase in ordered equipment, driven by the $176 billion in backlogs (50% equipment, 50% services), is expected to drive a lot more services growth into the next decade. The future growth in services will be a result of the additional demand for maintenance and operations services that will accompany the rise in ordered equipment.

A：The company feels balanced with demand relative to supply and is confident about the next 5 to 6 years with supply meeting relative demand. They anticipate needing some of the capacity as existing units go through their first outage events.

A：The company expects to reach an inflection point in the second half of the year where orders in backlog will be greater than gigawatts on slot reservation agreements, due to customers with slot reservation agreements making operational progress.

A：Customers are focusing on the complementary relationship between aero derivatives and heavy-duty gas turbines, with aero derivatives providing a bridge for customers, allowing them to buy incremental electricity while securing EPC capacity for heavy-duty installations.

A：The company is motivated by the innovation seen in their teams regarding solid-state transformers (SST) and medium voltage uninterruptible power supply (MV UPS). They have partnered with hyperscalers for shared development costs and risks during testing phases, with plans to transition to traditional transactions after successful prototyping.