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GE Vernova Raises Outlook After Record Orders and Cash Gain Despite EPS Miss

The guidance upgrade signals stronger demand for power equipment, creating more cash to allocate.

Overview

  • On Wednesday, July 22, GE Vernova reported Q2 results that beat revenue expectations with $11.1 billion in sales while adjusted EPS missed at $2.47 versus a $3.04 consensus.
  • New orders jumped 88% year over year to $24.2 billion and the backlog expanded to $176 billion, prompting management to lift full-year revenue guidance to $45.5–$46.5 billion.
  • Quarterly free cash flow was $5.1 billion and management raised full-year free-cash-flow guidance sharply to $11.5–$12.5 billion, citing stronger working capital and higher down payments.
  • The Wind unit remained a drag with a Q2 EBITDA loss of about $275 million and an expected roughly $400 million hit for the year, while the company warned of $100–$200 million in tariff-related costs for 2026.
  • Management pointed to heavy gas-turbine and data-center demand, set production targets to expand turbine output, and said the stronger cash outlook improves options for debt reduction, investment or buybacks as investors weigh the mixed results.