GE Vernova expects revenues in its fast-growing electrification segment to rise around 25% in 2025 and about 20% in 2026, company officials said in an annual investor update Tuesday.
Driving the increase is an electrification “supercycle” that will see electricity’s share in final energy consumption grow significantly in the years and decades ahead, CEO Scott Strazik said Tuesday.
A slide deck accompanying remarks by Strazik and Ken Parks, the company’s chief financial officer, said GE Vernova expects the current quarter to be its largest for electrical equipment orders direct to hyperscaler tech companies.
So far this quarter, the company said, customers in Europe, North America, the Middle East and Australia have booked orders for data center equipment, high-voltage direct-current infrastructure and synchronous condensers, which maintain inertia on grids with high shares of variable renewable generation.
“Every 90 days, I have that much more conviction on what we’re creating in our electrification business,” Strazik said, referring to the standard corporate quarterly earnings reporting cycle.
GE Vernova’s pending acquisition of Prolec GE will increase its exposure to markets for lower-voltage electrical equipment across broader geographies, Strazik added. He said the $5.3 billion deal for GE Vernova’s 50-50 joint venture with Mexican industrial conglomerate Grupo Xignux remains on track to close in mid-2026.
Strong gas turbine orders and pricing
GE Vernova’s Power segment backlog continues to expand thanks to strong demand for its gas turbines. It has booked 18 GW of turbine orders thus far in the fourth quarter and expects to end 2025 with an 80-GW backlog that stretches into 2029, according to the company. Pricing remains strong, with new reservations pricing above current orders.
GE Vernova reiterated its guidance for 20 GW of annualized turbine production by mid-2026 and said it could stretch production at its two existing facilities to annualized production of 24 GW by mid-2028. Strazik said he expects turbine reservations to be sold out through 2030 by the end of 2026.
Strazik and Parks talked up the more efficient, higher-capacity turbine models that large gas-fired power plants favor, but they said data centers and other energy-intensive customers are also interested in older, smaller aeroderivative models to supply “bridge power” for new facilities. The company will split the planned 4 GW of new production capacity roughly evenly between the French factory that makes those turbines and the South Carolina plant that makes the larger models, they said.
Large customers increasingly appear willing to provide GE Vernova with visibility into their ordering plans over the next five to 10 years, Strazik said.
“We are having healthy conversations in this vein with the hyperscalers” that could lead to “volume agreements” stretching out as far as 2035, he said. He predicted at least one such deal would materialize next year.
With the company expecting to have $16 billion in cash available for deployment by 2028, could longer-term demand visibility push GE Vernova to make a significant investment in new production? Strazik didn’t rule that out. But he said it wasn’t a decision the company needed to make soon.
“We do not anticipate having to address this in the next 18 months,” he said.
Wind business ‘still soft’
Wind remains the weakest of GE Vernova’s three business lines despite improved year-over-year performance. The presentation deck blamed “tariff uncertainty and permitting” for keeping a lid on orders, even as Strazik said customers have safe-harbored around 10 GW of capacity to ensure eligibility for the investment and production tax credits that were sunsetted by the budget bill President Donald Trump signed this summer.
“It is still soft relative to the potential of what it could be over time,” Strazik said of the segment.
By 2028, Strazik said, GE Vernova’s installed turbine base should approach 30 GW, much of it eligible for repowering orders that the company could fill. The company’s onshore wind business looks set to resolve around an annualized rate of 4 GW by then, though that forecast could prove conservative if orders reach an “inflection,” he added.
The outlook for GE Vernova’s offshore wind business looks grim, however. Strazik made no reference to potential orders beyond the nearly-complete Vineyard Wind project off Massachusetts and the Dogger Bank A project in the British North Sea, which is expected to wrap up work soon as well.
