GE Vernova -- How the Business Works
GE Vernova is a global energy equipment and services company spun off from GE Aerospace in
April 2024. It operates three segments: Power (gas turbines, nuclear, hydro,
steam -- 52% of revenue), Electrification (grid solutions, transformers, power
conversion -- 25%), and Wind (onshore and offshore turbines -- 24%). FY2025
revenue reached $38.1B with adjusted EBITDA margin of 8.4%, $150B in backlog, and $3.7B in
free cash flow. The company holds #1 global share in the gas turbine triopoly (~34%) with
sold-out capacity through 2029-2030.
FY2025 Revenue
$38.1B
+9.0% YoY | Guided $44-45B in 2026
Total Backlog
$150B
+26% YoY | 4+ years of visibility
Gas Turbine Share
~34%
#1 global triopoly | Sold out through 2029
Adj. EBITDA Margin
8.4%
Guided 11-13% in 2026 | 20% by 2028
Revenue by segment -- three distinct businesses
Revenue by Segment -- FY2025 ($B)
Power 52% -- $19.8B (+9.0%)
Electrification 25% -- $9.6B (+28%)
Wind 24% -- $9.1B (-6.1%)
Power EBITDA
$2.9B
14.7% margin (+220bps)
Electrification EBITDA
$1.4B
14.9% margin (+590bps)
Wind EBITDA
($598M)
-6.6% margin (-50bps)
Revenue segments from GE Vernova earnings reports via Daloopa. Power includes Gas, Nuclear, Hydro, and Steam sub-segments.
Segment deep dives -- Power, Electrification, Wind
Segment Profiles and Growth Status
Power -- Gas Turbine Oligopoly
~34% Share (#1)
Sold Out Through 2029-2030
Gas Power $16.0B (+10.7%), Nuclear $1.0B (+24.3%),
Hydro $0.8B, Steam $1.9B. 7,000+ turbine installed
base generates recurring SRA revenue. 83 GW on
contract, targeting 100 GW by YE 2026. SRA pricing
10-20 pts above existing backlog. HA-class technology
leadership. Backlog $94.4B (+29%).
Electrification -- Grid Modernization
+27.7% Growth
$150B Addressable Market
Grid solutions, transformers, switchgear, power
conversion. Revenue $9.6B guided to $13.5-14B in
2026 (incl ~$3B Prolec GE acquisition). Data center
orders tripled YoY to $2B+. Doubling transformer/
switchgear output 2024-2028. Solid-state transformer
prototype testing summer 2026. Backlog $34.7B (+48%).
Wind -- Turnaround / Strategic Drag
-$598M EBITDA
Offshore Effectively Dead
Onshore $8.2B (+5.9%, profitable at high single-digit
margins). Offshore $652M (-52.7%, winding down).
~59,000 turbines / 120 GW installed. US duopoly with
Vestas (~96% share). Offshore limited to Vineyard Wind
(2025) and Dogger Bank (2026). Guided ~($400M) losses
in 2026. Backlog $21.6B (-5%).
Business model mechanics -- equipment + services flywheel
GE Vernova operates a classic industrial equipment + services model. The
company sells power generation equipment (gas turbines, wind turbines, grid infrastructure)
and then captures recurring revenue through long-term service agreements (SRAs) on the
installed base. The gas turbine installed base of 7,000+ units generates high-margin
services revenue for decades. Equipment sales are increasingly high-margin as backlog
pricing improves (equipment margins expanded 6 pts YoY, 17 pts since 2022). The services
annuity is the core of the investment thesis -- it provides visibility and margin stability
regardless of new equipment order cycles.
Revenue Model Flow
Equipment Orders
$59B orders (+34% YoY)
→
Backlog Build
$150B total (+26% YoY)
→
Equipment Delivery
Multi-year cycle, margin expanding
→
Services / SRAs
7,000+ gas turbines, decades
Sub-segment revenue detail (FY2025)
| Sub-Segment | FY2024 | FY2025 | YoY Growth | % of Rev |
|---|---|---|---|---|
| Gas Power | $14,465M | $16,006M | +10.7% | 42.0% |
| Nuclear Power | $819M | $1,018M | +24.3% | 2.7% |
| Hydro Power | $781M | $806M | +3.2% | 2.1% |
| Steam Power | $2,063M | $1,937M | -6.1% | 5.1% |
| Power Total | $18,127M | $19,767M | +9.0% | 51.9% |
| Onshore Wind | $7,781M | $8,241M | +5.9% | 21.6% |
| Offshore Wind | $1,377M | $652M | -52.7% | 1.7% |
| LM Wind Power | $542M | $217M | -60.0% | 0.6% |
| Wind Total | $9,701M | $9,110M | -6.1% | 23.9% |
| Electrification | $7,550M | $9,642M | +27.7% | 25.3% |
| Total Revenue | $34,935M | $38,068M | +9.0% | 100% |
Backlog and orders -- exceptional forward visibility
Power Backlog
$94.4B
+29% YoY
Electrification Backlog
$34.7B
+48% YoY
Wind Backlog
$21.6B
-5% YoY | Only shrinking segment
Total Orders (FY2025)
$59B
+34% YoY | Book-to-bill ~1.6x
Equipment backlog margin added $8B in 2025 -- more than the prior 2 years
combined. Equipment backlog margins expanded 6 points YoY and 17 points since year-end 2022.
This means higher-margin orders from 2024-2025 have not yet delivered -- the majority will
convert to revenue in 2027+, providing a built-in margin expansion tailwind for years ahead.
Management expects to add at least $8B of incremental equipment margin in 2026 backlog.
Competitive position -- gas turbine triopoly
| Market | GEV Share | Key Competitors | Dynamics |
|---|---|---|---|
| Gas Turbines (Global) | ~34% (#1) | Siemens Energy (~24%), Mitsubishi (~10-12%) | Oligopoly, sold out |
| Grid / Electrification | ~10% of $150B TAM | Hitachi, Siemens, Schneider, ABB | Fragmented, capacity-scarce |
| US Onshore Wind | ~48% (duopoly w/ Vestas) | Vestas (~48%) | Strong share, weak demand |
| Nuclear / SMR | #1 large nuclear services | Hitachi (JV partner), NuScale | Renaissance, BWRX-300 |
Data sourced from Daloopa (company_id: 197701), earnings transcripts, and web sources.