GE Vernova bullish on electrical infrastructure as turbine backlog grows
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$10B revenue
Up 10% year over year.
$14.7B total orders
Up 55% year over year, driven by power and electrification segments.
62 GW total gas turbine backlog
Up 7 GW from Q2 2025. Includes 29 GW order backlog + 33 GW slot reservations.
102% growth in electrification
Fastest-growing GEV segment
GE Vernova will pay $5.3 billion for the remaining 50% of Prolec GE, the electrical equipment and services joint venture it owns 50-50 with Xignux, a Mexican conglomerate. It expects the deal to close by mid-2026, CEO Scott Strazik said on the company’s Oct. 22 earnings call.
The deal will override a contractual agreement with Xignux that largely prevented GE Vernova from selling transformers into North America, boosting its prospects there amid rapid growth in electricity demand and a utility investment supercycle. Prolec recently expanded production at facilities in Louisiana and Mexico and is progressing on a North Carolina factory expansion.
Strazik said Prolec’s data center sales grew from 10% of its total in 2024 to nearly 20% in 2025, with more to come. GE Vernova sees a clear opportunity to diversify beyond transmission equipment and services into “integrated solutions with power generation and electrical equipment” for a “new archetype of customers … like data centers,” he added.
“Data centers [are] coming to us and saying, ‘Co-create with us the power-to-rack solution,’” Strazik said.
In a Wednesday note, Jefferies energy equities analyst Julien Demoulin-Smith said the Prolec acquisition shows “a strategic preference for investment in Electrification,” which GE Vernova is “overtly signaling as its fastest growing segment vs. intense investor focus for [its] gas turbine order ramp.”
Revenue in the segment jumped 32% year over year as equipment orders more than doubled. GE Vernova expects 25% organic revenue growth this year — up from previous forecasts near 20% — and 10% annual growth into 2030.
Now-familiar growth drivers include data centers, widespread electrification, an increased need for grid flexibility amid distributed energy resource growth, utility-led transmission investments and “increased national security interests,” Strazik said. Hyperscale data centers account for $900 million in orders since January, pacing the segment to double 2024’s full-year total of $600 million.
“The breadth of market strength continues to reinforce our conviction in investing in this business,” Strazik said.
GE Vernova’s Power segment saw solid gas turbine order growth in the United States and key international markets.
Strazik said the segment’s combined pipeline, comprising signed order agreements and slot reservations, should approach 70 GW by December “with significant momentum into 2026.” GE Vernova has added hundreds of manufacturing employees and machines as it ramps toward its previously-announced production capacity goal of 20 GW/year by Q3 2026, but does not yet see justification for further capacity increases beyond that, he said.
Strazik said an analyst’s estimate of $2,500/kW for U.S. gas turbine orders is “a practical illustration of where the market is today” while pushing back on the implication that pricing has peaked.
Though data centers’ rush for power benefits more flexible aeroderivative turbines in the short term, heavy-duty turbines’ superior economics will win out in the 2030s, Strazik added. He downplayed concerns that mobile gas generators or fuel cells will eat into GE Vernova’s turbine business, citing higher per-MW and fuel costs. Those smaller units do have long-term potential as backup generation for data centers and other large industrial customers, replacing diesel gensets, he said.
Wind orders marginally increased from $1.8 billion in Q3 2024 to $1.9 billion this quarter, making it by far the weakest of GE Vernova’s three segments. Uncertainty will continue into 2026 due to permitting delays and tariff impacts while “the onshore [wind] volume trajectory remains too difficult to call,” Strazik said. But GE Vernova booked more repowering orders this quarter and sees significant growth potential in the U.S. and abroad.
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