GE Vernova posted double-digit revenue and order growth in the second quarter, driven once again by continued strong performance in its Power and Electrification business segments. Those segments, respectively, produce and service gas, hydro and nuclear power generation equipment; and commercial electrical equipment such as transformers and switchgears.

GE Vernova’s beleaguered third segment, Wind, saw orders fall sharply amid persistent softness in U.S. demand for onshore wind turbines and blades.

“We remain focused on what we can control,” CEO Scott Strazik said on a Wednesday morning earnings call, alluding to the economic, regulatory and legal challenges facing its wind business.

Strazik said GE Vernova expects its combined backlog of gas turbine orders and slot reservations to reach 125 GW by the end of the year. The company shipped 3 GW of turbines and signed 20 GW of orders and slot reservations, more than half of which are for the hulking HA-class turbines that customers typically run at higher capacity factors, he said.

Strazik said those customers are increasingly diverse, spanning about 100 entities in 26 countries. About 80% are “traditional” customers like utilities and 20% are data center customers, he said. 

Like Siemens and Mitsubishi Heavy Industries, its main competitors in heavy-duty gas turbine manufacturing, GE Vernova continues to book reservations four to five years out. 

GE Vernova is taking reservations for 2031 deliveries now and is on track to “be more than halfway contracted [for 2031] by the end of the year,” Strazik said. But despite “healthy discussions” with customers about potential 2032 bookings, “I would say we need more time before we can articulate the timing of contracting in ’32,” he added. 

Strazik alluded multiple times on the call to “strong” pricing for GE Vernova’s gas power equipment. Though he did not give specific figures for turbines sold in the second quarter, an analysis shared in a Wednesday note by Moses Sutton, senior analyst with BNP Paribas Equity Research, estimated about $790/kW for heavy-duty turbines, $950/kW for HA-class combined-cycle turbines and $1,800/kW for aeroderivative turbines.

Most investors would read Strazik’s 125-GW year-end backlog guidance as conservative “given management’s track record of under-guiding and over-delivering,” Sutton said. In December, Strazik said GE Vernova expected to end 2025 with an 80-GW gas turbine backlog; the actual figure was 83 GW.

For 2026, the market is likely looking for an actual year-end backlog of 130 GW to 140 GW, Sutton said.

As for GE Vernova’s plan to expand annual turbine manufacturing capacity to 30 GW by 2030, up from 20 GW today, Sutton said “the jury’s out.” Strazik’s suggestion that the company needs more time to firm up its 2032 pipeline may be a sign of “peak momentum emerging” in the company’s gas growth story, he said.

‘Early stages of a multi-decade growth opportunity’

Continuing a trend from recent GE Vernova earnings calls, Strazik sounded enthusiastic about the Electrification segment’s prospects amid what he called “this electricity investment supercycle.”

“The long-cycle electric power industry is in the early stages of a multi-decade growth opportunity and we are well positioned to create substantial value,” Strazik said.

Company figures show its overall Electrification backlog has broken above $40 billion, helped along by the completion of its acquisition of the remaining stake in GE Prolec, formerly a joint venture with Xignux, a Mexican industrial conglomerate. The merger was a factor in the company’s booking of around $800 million in U.S. transformer orders this quarter, Strazik said.

Broad-based load growth, utilities’ and data center customers’ increasing awareness of the need for grid-stabilizing equipment, and national security imperatives are all driving demand for GE Vernova’s electrical systems and components, Strazik said.

In a Wednesday investor note on GE Vernova, Julien Dumoulin-Smith, an equities analyst with investment bank Jefferies, said the company’s ongoing development of solid-state transformers and uninterruptible medium-voltage transformers set it up to benefit from anticipated data center demand for those cutting-edge electrical components.

But in a separate Wednesday note covering a range of companies in the power and electricity sector, Dumoulin-Smith cited community opposition and labor shortages as key dampeners of data center-related load growth that “place the integrity of the power supercycle into question.” Jefferies’s base case remains that data center energization accelerates in the coming years, “but not without hiccups,” he said.

Possible green shoots for wind despite ongoing industry troubles

Though the U.S. wind power industry remains under pressure from the Trump administration’s trade and energy policy, Strazik said the administration’s forthcoming guidance on Section 232 tariffs could provide more “order clarity” in the second half of 2026. At the moment, tariff-related uncertainty is impacting onshore wind development, Strazik said.

Independent energy analysts are cautiously optimistic that the sector will rebound in the years ahead. Wood Mackenzie boosted its five-year outlook for U.S. greenfield wind development by 5% this month as developers raced to capitalize on expiring federal tax credits and contracted corporate demand for clean energy surged.

“Large technology companies are turning to wind power as an additional energy source to meet their growing needs,” Wood Mackenzie said in a July 20 note.

Wood Mackenzie and Strazik both said a coming repowering cycle — owners of aging wind farms replacing older turbines with more powerful units — would support demand for wind power equipment well into the 2030s.

“In our install base in the U.S., there are approximately 10 gigawatts of units with repowering potential — projects that have already qualified for the new production tax credits,” Strazik said.

Strazik did not directly mention an ongoing legal dispute between his company and one of its wind customers, the 800-MW Vineyard Wind project off the Massachusetts coast. 

GE Renewables, a GE Vernova subsidiary, threatened to walk away from the nearly-complete project after Vineyard Wind withheld hundreds of millions of dollars in payments to offset what it called “catastrophic injury” stemming from a 2024 blade break. Vineyard Wind sued GE Vernova in April to block it from exiting its supply agreement.

In a regulatory filing this week, GE Vernova said it had “successfully completed the installation of all remaining wind turbines at the Vineyard Wind project” and has moved into the commissioning phase. 

“As we work through the final stages of the project, we are working with our customer to resolve outstanding claims and counterclaims,” the filing said.