GE Vernova NYSE: GEV expects to reach its previously stated $200 billion backlog target early in 2027, supported by continued demand for power-generation and electrification equipment, Chief Executive Officer and President Scott Strazik said at Morgan Stanley’s Laguna Conference.
The company ended the second quarter with a $176 billion backlog. Strazik said GE Vernova expects strong third-quarter orders and views the $200 billion threshold as an early milestone rather than an endpoint, citing the global need for additional electric power and the company’s position across generation, grid equipment and services.
“We continue to see very strong and durable demand with our end products,” Strazik said. He also pointed to factory automation and robotics investments, along with the use of data and artificial intelligence to support the company’s installed base, as long-term growth opportunities.
Gas turbine demand and production expansion
In its Power segment, GE Vernova has continued to add capacity and secure customer commitments for gas turbines. Strazik said the company sold multiple delivery slots for 2032 since its second-quarter earnings call and added 12 gigawatts of supply capacity for 2030 and 2031 over the summer. That additional capacity has received a strong market response at premium pricing, he said, with all 12 gigawatts in some stage of contracting.
He said the company recorded 40 gigawatts of new contract commitments in the first half of the year. While GE Vernova expects second-half commitments to be below that pace, Strazik said its prior outlook of about 20 gigawatts for the second half could prove conservative. He expects the fourth quarter to produce more contractual commitments than the third quarter.
GE Vernova expects to reach a 5-gigawatt quarterly production run rate in both the third and fourth quarters. Strazik said the company is highly confident it can increase production to 6 gigawatts per quarter sometime in the second half of next year and eventually reach 7 gigawatts per quarter in 2028.
Rather than building new greenfield factories, the company is adding equipment to existing facilities and applying lean operations, automation and robotics, Strazik said. He added that GE Vernova could potentially accelerate the capacity timeline if internal execution exceeds its external commitments.
On the debate over data centers using grid-connected power versus onsite generation, Strazik said GE Vernova can serve both markets. The company placed 61 aeroderivative turbines under contract in the second quarter, including units suited for smaller behind-the-meter applications. However, he said the company expects most data centers to ultimately connect to the grid because of the affordability and resilience benefits of an interconnected power system.
Services opportunity grows with installed base
Strazik highlighted the future service revenue associated with the company’s HA gas turbine fleet. HA services currently generate about $1 billion of revenue within the Power business, which produces about $24 billion in revenue, he said. GE Vernova has 130 HA machines operating today and another 195 under contract.
By the end of next year, the company expects to have at least 400 HA machines either running or under contract. Strazik said that represents about 200 gigawatts of incremental power and that each gigawatt of HA capacity can generate roughly $500 million of high-margin service revenue during the first 20 years of operation. By the end of next year, he said, GE Vernova expects to have contracted about $100 billion in future HA services revenue.
The company previously discussed Power Services revenue growing from $12 billion in 2025 to $22 billion in 2035. Strazik characterized that target as conservative and said the expanding installed base should support recurring services growth throughout the next decade, as newer equipment reaches its initial maintenance outages.
Electrification orders, data centers and Prolec integration
GE Vernova’s Electrification backlog has increased to $45 billion from $6 billion when the company was launched at the end of 2021, according to Strazik. The company recorded more than $5 billion in data center orders in the first half of 2026, compared with about $2 billion in all of 2025.
Strazik cautioned that data center orders are likely to be more uneven in the second half. Data center business represented nearly 40% of Electrification orders in the first half, but he said it may account for closer to 20% in the third and fourth quarters, while both the segment’s overall backlog and data center backlog continue to grow.
The company expects new products to contribute to orders during the second half, including its medium-voltage uninterruptible power supply system and additional Energy Management System solutions. Solid-state transformer orders are expected to be more of a 2027 opportunity. GE Vernova is also working with hyperscale customers at its research center in Niskayuna, New York, where it is testing equipment alongside hyperscaler racks.
Outside data centers, Strazik cited continued demand for high-voltage direct current projects. He said GE Vernova was publicly identified as the winner of a nearly $1.5 billion HVDC project in India, though the order is expected to be booked in the fourth quarter.
On its Prolec GE acquisition, Strazik said the company has found greater-than-expected potential to expand production from the acquired factories with modest capital expenditures. He also said GE Vernova had booked $800 million in orders through the second quarter for North American customers supplied from international factories, sales that had not been possible before the acquisition because of the prior joint venture’s regional exclusivity.
Wind profitability and capital allocation
Strazik said onshore wind order intake remains soft amid uncertainty involving tariffs, Section 232 classifications, permitting and customer decisions. While second-half onshore wind orders should be materially higher than first-half levels, he does not expect a near-term market inflection. He identified repowering as a potential opportunity, noting that more than 30 gigawatts of GE Vernova’s U.S. installed base could be repowered before production tax credits expire at the end of 2030.
Despite softer wind demand, Strazik said the segment is nearing a profitability pivot point as the company closes existing offshore projects and improves profitability in onshore services. He expects wind profitability to improve in the second half and to be materially better in 2027 than in 2026.
GE Vernova had $13 billion of cash at the end of the second quarter. Strazik said the company plans to balance organic investment, share repurchases and potential acquisitions. Through the second quarter, GE Vernova had repurchased 12.4 million shares at an average price of $560, he said. Any acquisitions would need to offer differentiated technology and be accretive to the company’s internal financial case.
The company plans to provide its 2027 financial outlook and disclose its 2026 equipment backlog margin change during its January earnings call. Strazik said GE Vernova expects to hold its next capital markets day in the spring, before summer, when it plans to outline a 2030 financial outlook.
About GE Vernova (NYSE:GEV)
GE Vernova Inc NYSE: GEV is an energy technology company that provides equipment, software and services for electricity generation, transmission and distribution. Its portfolio is designed to support power systems across a range of energy sources, including natural gas, nuclear, hydroelectric, wind and solar power, as well as battery storage.
The company operates through three primary businesses: Power, Wind and Electrification. Power supplies gas and steam turbines, generators, nuclear power technologies, hydroelectric equipment and related maintenance services.
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