GE Vernova (NYSE: GEV), spun off from General Electric roughly two years ago, reported second-quarter revenue of $11.1 billion, a 22% year-over-year increase that beat analyst estimates by $330 million.
Total orders surged 88% organically to $24.2 billion, driven by explosive demand across the company’s Power and Electrification segments, fueled by the AI infrastructure buildout.
Power segment orders jumped 134% organically, while Electrification orders climbed 66%, as utilities scrambled to secure gas turbines and grid equipment to meet surging electricity demand.
The AI boom has pushed data centers and cloud operators to consume power at a rate that has overwhelmed existing grid infrastructure, creating a sustained tailwind for GE Vernova’s highest-margin businesses.
Buried beneath those headline figures, however, is a steep deterioration in the Wind segment, where organic orders fell 40% year over year to just $1.2 billion.
Wind segment revenue also declined 10% to $2 billion, while EBITDA losses widened sharply to $275 million from $165 million in the same period a year earlier.
The EBITDA margin for Wind deteriorated to negative 13.6% from negative 7.3%, driven by lower equipment deliveries, higher offshore wind project costs, and weak onshore demand stemming from soft orders placed in the first half of 2025.
Policy uncertainty and sluggish U.S. demand have compounded the segment’s struggles, and GE Vernova now expects Wind to generate a full-year EBITDA loss of approximately $400 million in 2026.
Despite those losses, investors have largely shrugged off the Wind segment’s decline because Power and Electrification are generating margins that more than compensate for the drag.
In the first half of 2026, the Power segment posted an adjusted EBITDA margin of 17.6%, up from 14.1% in the same period of 2025, while Electrification improved to 18.2% from 13%.
GE Vernova’s total backlog swelled 37% year over year to $176.3 billion in the second quarter, reflecting the depth of demand for gas turbines and grid equipment stretching well into the coming years.
Rather than redirecting significant capital toward reversing the Wind segment’s fortunes, GE Vernova is prioritizing investment in its Power and Electrification businesses, where returns are stronger and order momentum is accelerating.
The Wind segment remains a weak link worth monitoring, particularly given the ongoing policy headwinds facing renewable energy development in the United States, but it does not yet represent a fundamental threat to the broader investment case for the stock.
