GE Vernova reports revenue growth despite decline in wind segment orders

GE Vernova reported second-quarter revenue of $11.1 billion, a 22% year-over-year increase that exceeded analyst estimates. Total organic orders surged 88% to $24.2 billion, driven largely by the Power and Electrification segments. Demand for gas turbines and grid equipment has been bolstered by the ongoing AI boom.

In contrast, the company’s Wind segment experienced a 40% decline in organic orders. This downturn is attributed to quality-control issues at projects such as Vineyard Wind and Dogger Bank, as well as margin compression caused by inflation and supply chain bottlenecks. Because many projects were under fixed-price contracts, the company has opted to downsize its offshore business and avoid high-risk bids.

Regarding institutional activity, General American Investors Co. Inc. reduced its stake in GE Vernova by 22% during the second quarter, leaving it with 71,000 shares. Other institutional investors have shown mixed movement, with World Investment Advisors and Danske Bank A/S increasing their positions, while others have established new stakes.