GE Vernova Inc.

Strong demand + accelerating order momentum (good): - 2Q26 orders: $24.2B, +88% YoY, with book-to-bill slightly above 2x (both equipment and services). - Backlog: $176B, +13B vs 1Q, and management expects ~$200B by 2027 (with backlog “mostly sold out” through much of the decade). - Segment highlights: - Power: orders more than doubled; Gas Power equipment orders ~4x YoY; services orders +12% YoY. - Electrification: orders ~$6.3B, +66% YoY; driven by switchgear, substations, transformers; includes Prolec GE integration traction. - Services demand is rising (transactional orders per unit up double digits annually)—supports higher-value, longer-duration revenue.

Operational + financial strength with margin expansion and big cash flow (good): - 2Q revenue: +12% YoY; equipment revenue +14% YoY; services revenue +10% YoY. - Adjusted EBITDA: $1.2B (+61% YoY) with margin +340 bps to expanded profitability (Power + Electrification led). - Free cash flow (FCF): $5.1B in 2Q, driven by working capital benefit ($6.4B cash benefit) and strong earnings. - Lean/productivity and sourcing savings: management cited ~20% savings on additional ~$300M spend negotiating, flowing into future periods. - Capital returns: about $4B returned to shareholders YTD (buybacks + dividend); $2.5B returned in 2Q and $7B repurchased under a $10B program, leaving ~$3B remaining.

Upward guidance: revenue + large FCF increase for 2026 (surprising/good): - Full-year revenue guidance raised: to $45.5B–$46.5B (+$1B vs prior outlook), largely due to Electrification and Power growth. - EBITDA margin guidance unchanged: 12%–14%. - Big FCF guidance raise: $11.5B–$12.5B vs prior $6.5B–$7.5B (material uplift reflecting order/down-payment timing and improved working capital/earnings). - CapEx + R&D intensity: guidance includes roughly ~30% YoY increase in R&D and CapEx to support growth and innovation (robots/AI/automation, capacity additions).