Orders surge for AI-ready energy gear
GE Vernova’s Power and Electrification divisions accounted for 55% and 33% of its 2025 orders. This shift occurred as cloud providers and data centers funneled more capital into high-voltage infrastructure. The Electrification segment, which includes transformers, breakers, and high-voltage direct current systems, saw orders spike by 131% in the first half of 2026 compared to the previous year. That growth highlights the rising need for advanced electrical systems to power the fast-growing cloud and AI sectors.
The Power segment alone recorded 99% higher orders in the first half of 2026 than the same period a year before. Gas and steam turbines sold to combined-cycle and nuclear power plants were largely responsible for this increase. Utilities are pushing ahead to expand their infrastructure in response to the growing demand for AI and cloud computing, which is driving higher energy consumption. This demand has fueled a rapid increase in power equipment sales and service contracts.
Wind unit drags on growth
The Wind segment, however, became a drag on overall growth. Orders for this segment dropped by 11% in the first half of 2026. Supply chain challenges, particularly for offshore and onshore turbines, stalled installations and hurt performance. Although the Wind unit contributed 13% to GE Vernova’s 2025 orders, its influence declined as delivery delays piled up. These issues made it harder for the company to maintain balanced growth across its segments.
Ramp-up costs and rich valuation
After releasing its second-quarter results on July 22, GE Vernova’s stock dipped slightly. Adjusted EBITDA and earnings per share (EPS) were below what Wall Street had predicted. The company had increased spending to expand its production capacity and also recorded additional losses from the Wind division. With a current valuation of around 40 times this year’s expected EBITDA, the stock doesn’t come cheap. Still, the company’s strong position in the AI-driven energy market may justify the higher price tag.
Despite the recent pullback, GE Vernova’s business remains strong. Its backlog of unfulfilled orders rose by 37% year over year to $176.3 billion during the second quarter of 2026. For the full year, the company expects revenue to increase by 19% to 22%. Its adjusted EBITDA margins are also expected to expand from 8.4% to 12% to 14%. These numbers show how the company is benefiting from surging infrastructure spending and growing energy demands.
The company’s Power and Electrification segments are expected to outperform, with growth driven by increasing investments in power infrastructure. Analysts remain optimistic about its long-term potential, especially given the role the company plays in supporting the energy needs of AI and cloud computing. As more companies and governments prioritize building resilient and scalable power systems, GE Vernova is well-positioned to capitalize on this trend.