Energy technology company GE Vernova came up short of analyst expectations for second-quarter adjusted core profit on Wednesday, as its Wind division continued to drag on overall results even while other parts of the business thrived.
Stock shares tumbled 6.4% in early morning trading following the report.
The Wind segment faced headwinds from sluggish onshore demand and rising costs tied to offshore projects. Meanwhile, the company saw surging interest in gas turbines and grid infrastructure as utility companies race to expand capacity — largely driven by the growing electricity demands of AI data centers and broader electrification trends.
Wind orders dropped roughly 40% compared to the same quarter a year ago, and the segment’s EBITDA losses grew to $275 million, up from $165 million in the prior year period. The company anticipates third-quarter Wind revenue will fall by low double digits year-over-year before conditions begin to improve in the second half of 2026.
Overall, quarterly adjusted EBITDA came in at $1.25 billion, falling below estimates compiled by LSEG. Revenue climbed 22% to reach $11.1 billion, and total orders surged 88% to $24.2 billion, pushing the company’s backlog to $176 billion.
On a brighter note, the Power division saw orders skyrocket 135% during the quarter on strong demand for gas turbines and related services. The Electrification segment posted a 68% revenue increase as utilities poured investment into transformers, switchgear, and grid equipment.
Chief Executive Scott Strazik said the company now expects to have at least 125 gigawatts of gas equipment under contract by year-end — an increase from its prior target. He also noted that data center-related orders have surpassed $5 billion so far this year, more than double the full-year total from 2025.
For the third quarter, GE Vernova projects Electrification revenue between $3.8 billion and $4.0 billion, ahead of the $3.42 billion analysts had expected, along with modest margin improvement.
Looking further ahead, the company raised its 2026 revenue outlook to a range of $45.5 billion to $46.5 billion, up from its previous forecast of $44.5 billion to $45.5 billion. It also lowered its expected tariff impact for 2026 to between $100 million and $200 million, down from the $250 million to $350 million projected in April. The company credited steps such as contractual provisions, changes in sourcing, trade regulation strategies, and certain tariff refunds for the improvement.
In a separate interview with Bloomberg, Strazik said GE Vernova plans to begin serving Venezuela this year, noting that the company is currently exchanging draft contracts with the country’s state utility to help bolster its power grid. He said earthquake-related delays had previously slowed that effort.
