GE Vernova (GEV) Bank of America Global Industrials Conference 2026 summary

Business overview and strategic direction

• Spun out from General Electric in April 2024, now generating about 25% of global electricity through customer equipment.

• Three main business lines: Power (largest), Electrification, and Wind, with Power being two-thirds services and one-third equipment.

• Services revenue comprises 45% of total, with an $85 billion services backlog and $150 billion total backlog, aiming for $200 billion in the next few years.

• Net cash position and plans to generate at least $24 billion in free cash flow from 2025–2028 after $11 billion in R&D and CapEx.

Margin progression and backlog growth

• Equipment margin in backlog increased by five points in 2024 and six points in 2025, adding $8 billion in margin, expected to impact P&L from 2027–2030.

• EBITDA margin targeted to rise from 8.5% in 2025 to 20% by 2028, driven by margin already in backlog.

• At least another $8 billion in equipment margin expected in 2026, mainly from higher-priced Gas Power Slot Reservation Agreements.

• Slot Reservation Agreements typically convert to orders in 6–18 months, with some extending to 2031.

Technology, automation, and AI impact

• Over 200 new machines installed in Gas Power factories in 2025, with another 200 planned for 2026, automating production and reducing manual labor.

• AI investments expected to improve engineering productivity and enable faster, more efficient service responses.

• Automation expected to boost volume, while AI will drive margin expansion, with material financial impact anticipated by 2028.