GE Vernova Inc.

10/28/2026 | Press release | Distributed by Public on 10/28/2026 04:20

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS. The following discussion and analysis of our financial condition and results of operations should be read in conjunction
with our consolidated financial statements, which are prepared in conformity with U.S. generally accepted accounting principles (GAAP),
and corresponding notes included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis provides
information that management believes to be relevant to understanding the financial condition and results of operations of the Company for
the three and nine months ended September 30, 2026 and 2025. The below discussion should be read alongside Item 7. "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated and combined financial statements
and corresponding notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Unless otherwise noted, tables
are presented in U.S. dollars in millions, except for per-share amounts which are presented in U.S. dollars. Certain columns and rows
within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from the underlying
numbers in millions. Unless otherwise noted, statements related to changes in operating results relate to the corresponding period in the
prior year.
In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data but not
presented in our financial statements prepared in accordance with GAAP. Certain of these data are considered "non-GAAP financial
measures" under SEC rules. For the reasons we use these non-GAAP financial measures and the reconciliations to their most directly
comparable GAAP financial measures, see "-Non-GAAP Financial Measures."
Trench Group. On October 25, 2026, GE Vernova entered into an agreement with Triton Partners to purchase the Trench Group for
approximately 8.0 billion Euros. Trench Group is a global developer, manufacturer, and supplier of specialized high- and medium-voltage
electrical components, including bushings, instrument transformers, and coils, with more than 3,000 employees across eleven
manufacturing sites. We currently expect to fund the acquisition equally between cash and debt. The acquisition is expected to close in late
2027, subject to the completion of customary regulatory approvals. See Part II, Item 5. Other Information for further information.
Prolec GE. On February 2, 2026, we completed the acquisition of the remaining 50% stake of Prolec GE, our former unconsolidated joint
venture with Xignux. We paid cash consideration of $5.2 billion for this acquisition. Prolec GE is an electric industry leader in North
America, with approximately 10,000 employees across seven manufacturing sites in the Americas, including five in the U.S. It produces a
wide variety of transformers and transformer components for the generation, transmission, and distribution of electricity, complemented by
its broad transformer services offering. Net assets and results of operations of Prolec GE are included in our results commencing on
February 2, 2026 and are reported within the Electrification segment. As a result of this acquisition, we remeasured our previously held
equity interest to fair value, with the resulting pre-tax gain of $4.0 billion recognized within Other income (expense) - net in our
Consolidated Statement of Income (Loss) during the first quarter of 2026.
Long-term Borrowings. On February 4, 2026, we issued $2.6 billion aggregate principal amount of senior notes, consisting of $0.6 billion,
$1.0 billion, and $1.0 billion due February 2031, 2036, and 2056, respectively. The proceeds from the debt offering were used for general
corporate purposes, including financing a portion of the acquisition of the remaining 50% stake of Prolec GE.
Offshore Wind. At Offshore Wind, we continue to experience pressure related to our project costs and execution timelines, as we deliver
on our existing backlog. During the first quarter of 2026, we successfully completed the installation of all remaining wind turbines at the
Vineyard Wind project and have commissioned substantially all wind turbines with the remainder expected to be completed in early 2027.
In the third quarter of 2026, we reached commercial resolution with our customer to resolve outstanding claims and counterclaims.
Tariffs. Throughout 2025 and 2026, the United States and other countries imposed global tariffs. These tariffs have resulted, and any
future tariffs will result, in additional costs to us. The total estimated cost impact from the global tariffs as outlined is under $100 million in
2026, after taking into consideration contractual protections and mitigating actions, including pursuing the recovery of certain tariffs. The
actual impacts of tariffs may be significantly different than our current estimate. Our estimate is subject to several factors including the
amount, duration, and scope and nature of the tariffs, countermeasures that countries take, mitigating or other actions we take, and
contractual implications.
Business Unit Realignment. Effective January 1, 2026, we realigned the reporting of certain of our business units. Historical financial
information presented within this report conforms to the new business unit structure within the Power, Electrification, and Wind segments.
•Within our Power segment, our Steam Power business unit was realigned into Nuclear Power, Hydro Power, and Gas Power. In
addition, a component of our former Electrification Software business unit was realigned into Gas Power.
•Within our Electrification segment, we revised our Grid Solutions business unit into three new business units, Power Transmission,
Grid Systems Integration, and Grid Automation & Software. In addition, a component of our former Electrification Software business
unit was realigned into Grid Automation & Software and another component was realigned into Gas Power within our Power segment.
•Within our Wind segment, we combined our Onshore Wind and LM Wind Power business units into Onshore Wind.
2026 3Q FORM 10-Q 26
TRENDS AND FACTORS IMPACTING OUR PERFORMANCE. We believe our performance and future success depends on a number of
factors that present significant opportunities for us but also pose risks and challenges, including those discussed below.
Our worldwide operations are affected by regional and global factors impacting energy demand, including industry trends like
decarbonization, an increasing demand for renewable energy alternatives, governmental regulations and policies, and changes in broader
economic and geopolitical conditions. These trends, along with the growing focus on the digitization and sustainability of the electricity
infrastructure, can impact performance across each of our business segments. We believe that our industry-defining technologies and
commitment to innovation position us well to capitalize on, as well as mitigate adverse impacts from, these long-term trends:
•Demand growth for electricity generation - Significant investment, infrastructure, and supply diversity will be essential to help meet
forecasted energy demand growth arising from population and global economic growth.
•Decarbonization - The urgency to combat climate change is fueling technology advancements that improve the economic viability and
efficiency of renewable energy alternatives and facilitate the transition to a more sustainable power sector.
•Evolving generation mix - The power industry is shifting from coal generation to more electricity generated from zero- or low-carbon
energy sources, and an evolving balance of generation sources will be necessary to maintain a reliable, resilient, and affordable
system.
•Energy resilience & security - Threats and challenges from extreme weather events, cyber-attacks, and geopolitical tensions have
increased focus on the strength and resilience of power generation and transmission and reinforced the need for a diversified mix of
energy sources.
•Grid modernization and investment - Increased demand and the integration of advanced generation and storage solutions drive the
need to update aging infrastructure with new grid integration and automation solutions.
•Regulatory and policy changes - Government policies and regulations, such as carbon pricing, renewable energy mandates, and
subsidies for renewable energy technologies, can significantly impact the power generation landscape. Staying ahead of regulatory
changes and adapting to new compliance requirements is crucial for maintaining a competitive advantage.
•Financial and investment dynamics - Access to capital and investment trends in the energy sector can influence the development and
deployment of new power generation projects. Understanding market dynamics and securing funding are key to progressing strategic
initiatives.
RESULTS OF OPERATIONS
Summary of Results. RPO was $196.7 billion and $135.3 billion as of September 30, 2026 and 2025, respectively. For the three months
ended September 30, 2026, total revenues were $12.6 billion, an increase of $2.7 billion for the quarter. Net income (loss) was $1.3 billion,
an increase of $0.8 billion in net income for the quarter, and net income (loss) margin was 10.2%. Diluted earnings (loss) per share was
$4.81 for the three months ended September 30, 2026, an increase in diluted earnings per share of $3.17 for the quarter. Cash flows from
(used for) operating activities were $16.7 billion and $2.5 billion for the nine months ended September 30, 2026 and 2025, respectively.
For the three months ended September 30, 2026, Adjusted EBITDA* was $1.9 billion, an increase of $1.1 billion. Free cash flow* was $15.3
billion and $1.9 billion for the nine months ended September 30, 2026 and 2025, respectively.
RPO, a measure of backlog, includes unfilled firm and unconditional customer orders for equipment and services, excluding any purchase
order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. Services RPO includes the
estimated life of contract sales related to long-term service agreements which remain unsatisfied at the end of the reporting period,
excluding contracts that are not yet active. Services RPO also includes the estimated amount of unsatisfied performance obligations for
time and material agreements, material services agreements, spare parts under purchase order, multi-year maintenance programs, and
other services agreements, excluding any order that provides the customer with the ability to cancel or terminate without incurring a
substantive penalty. See Note 9 in the Notes to the consolidated financial statements for further information.
RPO
September 30, 2026
December 31, 2025
September 30, 2025
Equipment
$104,054
$64,245
$54,092
Services
92,667
85,993
81,177
Total RPO
$196,721
$150,238
$135,269
As of September 30, 2026, RPO increased $46.5 billion (31%) from December 31, 2025, primarily at Power, due to increases at Gas
Power equipment and services, and increases at Nuclear Power services, partially offset by decreases at Hydro Power equipment; and at
Electrification, due to the acquisition of Prolec GE of $5.0 billion and demand for switchgear and transformers at Power Transmission, and
demand for alternating current substation solutions, partially offset by decreases in high-voltage direct current solutions at Grid Systems
Integration; partially offset at Wind, due to a decrease at Offshore Wind as we continue to execute on our contracts and at Onshore Wind
due to a decrease in orders primarily in North America. RPO increased $61.5 billion (45%) from September 30, 2025, primarily at Power,
due to increases at Gas Power equipment and services, and increases at Nuclear Power services and equipment; and at Electrification,
due to the acquisition of Prolec GE of $5.0 billion and demand for switchgear and transformers at Power Transmission, demand for
alternating current substation solutions, flexible alternating current transmission systems, and high-voltage direct current solutions at Grid
Systems Integration, and synchronous condensers at Power Conversion & Storage; partially offset at Wind, due to a decrease at Offshore
Wind as we continue to execute on our contracts and at Onshore Wind due to a decrease in orders primarily in North America.
Three months ended September 30
Nine months ended September 30
REVENUES
2026
2025
2026
2025
Equipment revenues
$8,340
$5,880
$20,053
$14,971
Services revenues
4,302
4,089
13,031
12,141
Total revenues
$12,642
$9,969
$33,084
$27,112
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 27
For the three months ended September 30, 2026, total revenues increased $2.7 billion (27%). Equipment revenues increased at
Electrification, primarily due to the acquisition of Prolec GE and increased volume in switchgear and transformers at Power Transmission,
and increased volume in alternating current substation solutions and high-voltage direct current solutions at Grid Systems Integration; and
at Power, due to increases at Gas Power from higher Aeroderivative and Heavy-Duty Gas Turbine deliveries and favorable pricing; partially
offset at Wind, primarily at Onshore Wind due to lower deliveries, partially offset by increases at Offshore Wind due to higher deliveries and
lower project updates. Services revenues increased at Wind, due to an increase at Onshore Wind from higher transactional volume; and at
Power; partially offset at Electrification.
Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*
increased $1.8 billion (18%), organic equipment revenues* increased $1.5 billion (26%) and organic services revenues* increased $0.2
billion (6%). Organic revenues* increased at Power, Electrification, and Wind.
For the nine months ended September 30, 2026, total revenues increased $6.0 billion (22%). Equipment revenues increased at
Electrification, primarily due to the acquisition of Prolec GE and increased volume in switchgear and transformers at Power Transmission,
increased volume in alternating current substation solutions and high-voltage direct current solutions at Grid Systems Integration, and
increased volume in power stability at Power Conversion & Storage; and at Power, due to increases at Gas Power from higher
Aeroderivative and Heavy-Duty Gas Turbine deliveries and favorable pricing; partially offset at Wind, primarily at Onshore Wind due to
lower deliveries, partially offset by increases at Offshore Wind due to higher deliveries and lower project updates. Services revenues
increased at Wind, due to increases at Onshore Wind from higher transactional volume; and at Power, due to increases at Nuclear Power
from higher volume and favorable pricing; partially offset at Electrification.
Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*
increased $3.4 billion (13%), organic equipment revenues* increased $2.6 billion (18%) and organic services revenues* increased $0.8
billion (7%). Organic revenues* increased at Power and Electrification, partially offset at Wind.
Three months ended September 30
Nine months ended September 30
EARNINGS (LOSS)
2026
2025
2026
2025
Operating income (loss)
$1,394
$366
$2,227
$787
Net income (loss)
1,289
6,687
1,209
Net income (loss) attributable to GE Vernova
1,291
6,704
1,220
Adjusted EBITDA*
1,943
4,089
2,038
Diluted earnings (loss) per share
$4.81
$1.64
$24.81
$4.41
For the three months ended September 30, 2026, operating income (loss) was $1.4 billion, a $1.0 billion increase, primarily due to: an
increase in segment results at Power of $0.6 billion, primarily at Gas Power due to favorable pricing and higher volume, partially offset by
the impact of inflation; at Electrification of $0.4 billion, primarily at Power Transmission due to the acquisition of Prolec GE, higher volume,
productivity, and favorable price, and at Grid Systems Integration due to higher volume and productivity; and at Wind of $0.1 billion,
primarily at Offshore Wind due to lower project costs and at Onshore Wind due to the impact of tariff recoveries and Onshore Wind services
due to higher transactional volume, partially offset by Onshore Wind equipment due to lower volume; partially offset by an increase in
depreciation and amortization expense across all segments of $0.2 billion due to the acquisition of Prolec GE and additional capital
expenditures.
Net income (loss) and Net income (loss) margin were $1.3 billion and 10.2%, respectively, for the three months ended September 30, 2026,
an increase of $0.8 billion and 5.7%, respectively, for the quarter, primarily due to an increase in operating income (loss) of $1.0 billion,
partially offset by an increase in provision for income taxes of $0.2 billion.
Adjusted EBITDA* and Adjusted EBITDA margin* were $1.9 billion and 15.4%, respectively, for the three months ended September 30,
2026, an increase of $1.1 billion and 7.3%, respectively, primarily driven by increases in segment results at Power, Electrification, and
Wind.
For the nine months ended September 30, 2026, operating income (loss) was $2.2 billion, a $1.4 billion increase, primarily due to: an
increase in segment results at Power of $1.2 billion, primarily at Gas Power due to favorable pricing, higher volume, and increased
productivity, partially offset by the impact of inflation and additional expenses to support investments at Gas Power and Nuclear Power; and
at Electrification of $1.0 billion, primarily at Power Transmission due to the acquisition of Prolec GE, higher volume, productivity, and
favorable price, and at Grid Systems Integration due to higher volume; partially offset by a decrease at Wind of $0.2 billion, primarily at
Onshore Wind due to lower equipment deliveries, partially offset by lower costs and higher transactional volume at Onshore Wind services,
and the impact of tariff recoveries at Onshore Wind; and an increase in depreciation and amortization expense across all segments of $0.6
billion due to the acquisition of Prolec GE and additional capital expenditures.
Net income (loss) and Net income (loss) margin were $6.7 billion and 20.2%, respectively, for the nine months ended September 30, 2026,
an increase of $5.5 billion and 15.7%, respectively, for the year, primarily due to an increase in other income (expense) - net of $4.5 billion
driven by a $4.0 billion pre-tax gain related to the acquisition of Prolec GE and a $0.4 billion pre-tax gain related to the sale of our Proficy
manufacturing software business (Proficy), and an increase in operating income (loss) of $1.4 billion, partially offset by an increase in
provision for income taxes of $0.6 billion.
Adjusted EBITDA* and Adjusted EBITDA margin* were $4.1 billion and 12.4%, respectively, for the nine months ended September 30,
2026, an increase of $2.1 billion and 4.9%, respectively, primarily driven by increases in segment results at Power and Electrification,
partially offset at Wind.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 28
SEGMENT OPERATIONS. Segment revenues include sales of equipment and services by our segments. Segment EBITDA is
determined based on performance measures used by our Chief Operating Decision Maker, who is our Chief Executive Officer (CEO), to
assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude certain non-cash
charges, such as depreciation and amortization, impairments and other matters, major restructuring programs, and certain gains and
losses from purchases and sales of business interests. Certain corporate costs, including those related to shared services, employee
benefits, and information technology (IT), are allocated to our segments based on usage or their relative net cost of operations.
Three months ended September 30
Nine months ended September 30
SUMMARY OF REPORTABLE SEGMENTS
2026
2025
2026
2025
Power
$6,067
$4,863
$16,516
$14,097
Electrification
3,862
2,565
10,459
6,566
Wind
2,741
2,647
6,200
6,742
Eliminations and other
(29)
(107)
(91)
(293)
Total revenues
$12,642
$9,969
$33,084
$27,112
Segment EBITDA
Power
$1,297
$651
$3,139
$1,954
Electrification
1,939
Wind
(61)
(585)
(373)
Corporate and other(a)
(166)
(166)
(405)
(448)
Adjusted EBITDA*(b)
$1,943
$811
$4,089
$2,038
(a) Includes our Financial Services business and other general corporate expenses, including costs required to operate as a stand-alone
public company.
(b) See "-Non-GAAP Financial Measures" for additional information related to Adjusted EBITDA*. Adjusted EBITDA* includes interest and
other financial income (charges) and the benefit for income taxes of Financial Services as this business is managed on an after-tax
basis due to the nature of its investments.
POWER
Three months ended September 30
Nine months ended September 30
Orders in units
2026
2025
2026
2025
Gas Turbines
Heavy-Duty Gas Turbines
HA-Turbines
Aeroderivatives
Gas Turbine Gigawatts
16.6
7.4
36.7
19.6
Three months ended September 30
Nine months ended September 30
Sales in units
2026
2025
2026
2025
Gas Turbines
Heavy-Duty Gas Turbines
HA-Turbines
Aeroderivatives
Gas Turbine Gigawatts
5.3
4.0
12.8
12.2
RPO
September 30, 2026
December 31, 2025
September 30, 2025
Equipment
$54,422
$24,707
$18,977
Services
76,431
69,841
65,239
Total RPO
$130,854
$94,548
$84,216
RPO as of September 30, 2026 increased $36.3 billion (38%) from December 31, 2025, primarily at Gas Power due to increases in
equipment and services, and increases at Nuclear Power services, partially offset by decreases at Hydro Power equipment. RPO increased
$46.6 billion (55%) from September 30, 2025, primarily at Gas Power due to increases in equipment and services, and increases at
Nuclear Power services and equipment.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 29
Three months ended September 30
Nine months ended September 30
SEGMENT REVENUES AND EBITDA
2026
2025
2026
2025
Gas Power
$5,117
$3,948
$13,610
$11,464
Nuclear Power
2,294
1,975
Hydro Power
Total segment revenues
$6,067
$4,863
$16,516
$14,097
Equipment
$2,870
$1,744
$6,721
$4,740
Services
3,197
3,119
9,796
9,357
Total segment revenues
$6,067
$4,863
$16,516
$14,097
Segment EBITDA
$1,297
$651
$3,139
$1,954
Segment EBITDA margin
21.4
%
13.4
%
19.0
%
13.9
%
For the three months ended September 30, 2026, segment revenues were up $1.2 billion (25%) and segment EBITDA was up $0.6
billion (99%).
Segment revenues increased $1.2 billion (25%) organically*, primarily at Gas Power equipment due to higher Aeroderivative and Heavy-
Duty Gas Turbine deliveries and favorable pricing.
Segment EBITDA increased $0.7 billion organically*, primarily at Gas Power due to favorable pricing and higher volume, partially offset by
the impact of inflation.
For the nine months ended September 30, 2026, segment revenues were up $2.4 billion (17%) and segment EBITDA was up $1.2
billion (61%).
Segment revenues increased $2.3 billion (17%) organically*, primarily at Gas Power equipment due to higher Aeroderivative and Heavy-
Duty Gas Turbine deliveries and favorable pricing, and increases at Nuclear Power services due to higher volume and favorable pricing.
Segment EBITDA increased $1.2 billion (65%) organically*, primarily at Gas Power due to favorable pricing, higher volume, and increased
productivity, partially offset by the impact of inflation and additional expenses to support investments at Gas Power and Nuclear Power.
ELECTRIFICATION
RPO
September 30, 2026
December 31, 2025
September 30, 2025
Equipment
$42,204
$30,508
$26,455
Services
3,943
3,734
3,317
Total RPO
$46,148
$34,242
$29,772
RPO as of September 30, 2026 increased $11.9 billion (35%) from December 31, 2025, primarily due to the acquisition of Prolec GE of
$5.0 billion and demand for switchgear and transformers at Power Transmission, and demand for alternating current substation solutions,
partially offset by decreases in high-voltage direct current solutions at Grid Systems Integration. RPO increased $16.4 billion (55%) from
September 30, 2025, primarily due to the acquisition of Prolec GE of $5.0 billion and demand for switchgear and transformers at Power
Transmission, demand for alternating current substation solutions, flexible alternating current transmission systems, and high-voltage direct
current solutions at Grid Systems Integration, and synchronous condensers at Power Conversion & Storage.
Three months ended September 30
Nine months ended September 30
SEGMENT REVENUES AND EBITDA
2026
2025
2026
2025
Power Transmission
$1,868
$811
$5,124
$2,262
Grid Systems Integration
1,002
2,499
1,646
Power Conversion & Storage
1,585
1,413
Grid Automation & Software
1,251
1,246
Total segment revenues
$3,862
$2,565
$10,459
$6,566
Equipment
$3,377
$2,035
$9,008
$5,100
Services
1,451
1,466
Total segment revenues
$3,862
$2,565
$10,459
$6,566
Segment EBITDA
$739
$387
$1,939
$906
Segment EBITDA margin
19.1
%
15.1
%
18.5
%
13.8
%
For the three months ended September 30, 2026, segment revenues were up $1.3 billion (51%) and segment EBITDA was up $0.4
billion (91%).
Segment revenues increased $0.4 billion (16%) organically*, primarily at Grid Systems Integration due to increased volume in alternating
current substation solutions and high-voltage direct current solutions, and at Power Transmission due to increased volume in switchgear
and transformers.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 30
Segment EBITDA increased $0.2 billion (57%) organically*, primarily at Grid Systems Integration due to higher volume and productivity,
and at Power Transmission due to higher volume, productivity, and favorable price.
For the nine months ended September 30, 2026, segment revenues were up $3.9 billion (59%) and segment EBITDA was up $1.0
billion.
Segment revenues increased $1.5 billion (24%) organically*, primarily at Grid Systems Integration due to increased volume in alternating
current substation solutions and high-voltage direct current solutions, at Power Transmission due to increased volume in switchgear and
transformers, and at Power Conversion & Storage due to increased volume in power stability.
Segment EBITDA increased $0.6 billion (86%) organically*, primarily at Power Transmission due to higher volume, productivity, and
favorable price and at Grid Systems Integration due to higher volume.
WIND
Three months ended September 30
Nine months ended September 30
Onshore and Offshore Wind orders in units
2026
2025
2026
2025
Wind Turbines
Repower Units
Wind Turbine and Repower Units Gigawatts
1.5
0.9
2.7
2.7
Three months ended September 30
Nine months ended September 30
Onshore and Offshore Wind sales in units
2026
2025
2026
2025
Wind Turbines
1,103
Repower Units
Wind Turbine and Repower Units Gigawatts
2.1
2.1
4.0
5.1
RPO
September 30, 2026
December 31, 2025
September 30, 2025
Equipment
$7,584
$9,112
$8,782
Services
12,368
12,518
12,726
Total RPO
$19,952
$21,630
$21,508
RPO as of September 30, 2026 decreased $1.7 billion (8%) from December 31, 2025 and decreased $1.6 billion (7%) from September 30,
2025, primarily due to a decrease at Offshore Wind as we continue to execute on our contracts and at Onshore Wind due to a decrease in
orders primarily in North America.
Three months ended September 30
Nine months ended September 30
SEGMENT REVENUES AND EBITDA
2026
2025
2026
2025
Onshore Wind
$2,468
$2,453
$5,376
$6,118
Offshore Wind
Total segment revenues
$2,741
$2,647
$6,200
$6,742
Equipment
$2,121
$2,203
$4,405
$5,412
Services
1,795
1,331
Total segment revenues
$2,741
$2,647
$6,200
$6,742
Segment EBITDA
$72
$(61)
$(585)
$(373)
Segment EBITDA margin
2.6
%
(2.3)
%
(9.4)
%
(5.5)
%
For the three months ended September 30, 2026, segment revenues were up $0.1 billion (4%) and segment EBITDA was up $0.1
billion.
Segment revenues increased $0.1 billion (3%) organically*, primarily at Onshore Wind services due to increased transactional volume and
at Offshore Wind due to higher deliveries and lower project updates, partially offset by Onshore Wind equipment due to lower deliveries.
Segment EBITDA increased $0.1 billion organically*, primarily at Offshore Wind due to lower project costs, and at Onshore Wind due to the
impact of tariff recoveries and Onshore Wind services due to higher transactional volume, partially offset by Onshore Wind equipment due
to lower volume in North America.
For the nine months ended September 30, 2026, segment revenues were down $0.5 billion (8%) and segment EBITDA was down
$0.2 billion (57%).
Segment revenues decreased $0.6 billion (9%) organically*, primarily at Onshore Wind equipment due to lower deliveries, partially offset by
increases at Onshore Wind services due to increased transactional volume and Offshore Wind due to higher deliveries and lower project
updates.
Segment EBITDA decreased $0.2 billion (67%) organically*, primarily at Onshore Wind due to lower equipment deliveries in North America,
partially offset by lower costs and higher transactional volume at Onshore Wind services, and the impact of tariff recoveries at Onshore
Wind.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 31
OTHER INFORMATION
Gross Profit and Gross Margin. Gross profit was $3.1 billion and $1.9 billion for the three months ended and $7.2 billion and $5.2 billion
for the nine months ended September 30, 2026 and 2025, respectively. Gross margin was 24.6% and 19.0% for the three months ended
and 21.9% and 19.2% for the nine months ended September 30, 2026 and 2025, respectively. The increase in gross profit for the quarter
was due to an increase at Power due to favorable pricing and higher volume at Gas Power, partially offset by the impact of inflation; at
Electrification due to the acquisition of Prolec GE and higher volume, productivity, and favorable price at Power Transmission and Grid
Systems Integration; and at Wind primarily at Offshore Wind due to lower project costs and at Onshore Wind due to the impact of tariff
recoveries and Onshore Wind services due to higher transactional volume, partially offset at Onshore Wind equipment due to lower volume
in North America. The increase in gross profit for the year was due to increases at Power and Electrification due to the reasons described
above, partially offset at Wind due to lower equipment deliveries at Onshore Wind, partially offset by lower costs and higher transactional
volume at Onshore Wind services, and the impact of tariff recoveries at Onshore Wind.
Selling, General, and Administrative. Selling, general, and administrative costs were $1.4 billion and $1.2 billion for the three months
ended and $4.0 billion and $3.6 billion for the nine months ended and comprised 10.7% and 12.3% of revenues for the three months ended
and 12.2% and 13.3% of revenues for the nine months ended September 30, 2026 and 2025, respectively. Selling, general, and
administrative costs increased $0.1 billion for the quarter and $0.4 billion for the year, primarily due to incremental costs associated with the
acquisition of Prolec GE and labor inflation, partially offset by cost reduction activities.
Restructuring Charges and Separation Costs. We continuously evaluate our cost structure and are implementing several restructuring
and process transformation actions considered necessary to simplify our organizational structure. In connection with the separation from
General Electric Company (GE), we incurred and will continue to incur certain one-time separation costs. See Note 23 in the Notes to the
consolidated financial statements for further information.
Interest and Other Financial Income (Charges) - Net. Interest and other financial income (charges) - net was $0.1 billion and less than
$0.1 billion in income for the three months ended and $0.2 billion and $0.1 billion in income for the nine months ended September 30, 2026
and 2025, respectively. The increase in income for the quarter and for the year was primarily due to a higher average balance of invested
funds, partially offset by higher interest expense on borrowings. The primary components of net interest and other financial income
(charges) are fees on cash management activities and credit facilities, interest on borrowings, and interest earned on cash balances and
short-term investments.
Income Taxes. Our effective tax rate was 27.7% for the three months ended September 30, 2026. The effective tax rate was higher than
the U.S. statutory rate of 21% primarily due to losses providing no tax benefit in certain jurisdictions and U.S. tax effects of income earned
in foreign jurisdictions, partially offset by an income tax benefit from tax law changes.
Our effective tax rate was 14.4% for the nine months ended September 30, 2026. The effective tax rate was lower than the U.S. statutory
rate of 21% primarily due to a nontaxable gain on the acquisition of Prolec GE, income tax benefits from stock-based compensation and tax
law changes, partially offset by losses providing no tax benefit in certain jurisdictions and U.S. tax effects of income earned in foreign
jurisdictions.
Our effective tax rate was 39.2% and 29.8% for the three and nine months ended September 30, 2025, respectively. The effective tax rate
was higher than the U.S. statutory rate of 21% in both periods primarily due to losses providing no tax benefit in certain jurisdictions and the
finalization of the Company's pre-separation from GE tax attributes that increased the Company's current provision for income taxes,
partially offset by an income tax benefit from stock-based compensation.
CAPITAL RESOURCES AND LIQUIDITY. As of September 30, 2026, our Cash, cash equivalents, and restricted cash was $16.8
billion, $0.4 billion of which was restricted use cash. In addition, we have access to a $3.0 billion committed revolving credit facility
(Revolving Credit Facility). See "-Capital Resources and Liquidity-Debt" for further information. We believe our unrestricted cash, cash
equivalents, future cash flows generated from operations, and committed credit facility will be responsive to the needs of our current and
planned operations for at least the next 12 months.
We repurchased 1.7 million shares and 6.0 million shares for $1.6 billion and $5.3 billion during the three months and nine months ended
September 30, 2026, respectively, under our share repurchase program. On October 28, 2026, we announced that our Board of Directors
increased our share repurchase authorization to $20.0 billion of common stock. Cumulatively, as of September 30, 2026, we have
repurchased $8.6 billion of common stock over the life of the program. Although we intend to fund priorities that profitably grow the
Company and return capital to stockholders through dividends and share repurchases as part of our capital allocation strategy, we are not
obligated to pay cash dividends or to repurchase a specified or any number or dollar value of shares under our share repurchase program.
The declaration of any future dividends is at the discretion of our Board of Directors and will be based on our earnings, financial condition,
cash requirements, prospects, and other factors. The amount and timing of any future share repurchases under our share repurchase
program will be based on the trading price and volume of our shares of common stock and other market factors as well as our earnings,
financial condition, cash requirements, prospects, alternative uses for our cash, and other factors.
Consolidated Statement of Cash Flows. The most significant source of cash flows from operations is customer-related activities, the
largest of which is collecting cash resulting from equipment or services sales. The most significant operating uses of cash are to pay our
suppliers, employees, and tax authorities. We measure ourselves on a free cash flow* basis. We believe that free cash flow* provides
management and investors with an important measure of our ability to generate cash subsequent to fulfilling our capital obligations;
however, free cash flow* does not delineate funds available for discretionary uses as it does not deduct the payments required for certain
investing and financing activities.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 32
We typically invest in property, plant, and equipment (PP&E) over multiple periods to support new product introductions and increases in
manufacturing capacity and to perform ongoing maintenance of our manufacturing operations. We believe that while PP&E expenditures
will fluctuate period to period, we will need to maintain a material level of net PP&E spend to maintain ongoing operations and growth of the
business.
Nine months ended September 30
FREE CASH FLOW (NON-GAAP)
2026
2025
Cash from (used for) operating activities (GAAP)
$16,737
$2,508
Add: Gross additions to property, plant, and equipment and internal-use software
(1,430)
(606)
Free cash flow (Non-GAAP)
$15,307
$1,902
Cash from operating activities was $16.7 billion and $2.5 billion for the nine months ended September 30, 2026 and 2025, respectively.
Cash from operating activities increased by $14.2 billion in 2026 compared to 2025, primarily driven by higher customer payment activity
and improved profitability. The increase was primarily driven by: an increase from contract liabilities and current deferred income of $17.1
billion, primarily due to higher down payments on orders and slot reservation agreements at Power, higher down payments at
Electrification, and lower revenue recognition at Wind; higher net income (after adjusting for depreciation of PP&E, amortization of
intangible assets, (gains) losses on purchases and sales of business interests, and provision (benefit) for income taxes) of $2.3 billion; an
increase from accounts payable of $1.0 billion, driven by growth and a higher impact related to decreases in prepayments across all
segments; partially offset by higher income taxes paid of $(2.2) billion; a decrease from current receivables of $(2.2) billion, primarily due to
higher net billings across all segments; a decrease from inventories of $(1.0) billion, primarily due to higher build at Power and Wind; and
voluntary payments of $(0.9) billion related to pension and retiree benefit plans in 2026.
Cash from operating activities of $16.7 billion for the nine months ended September 30, 2026 included a $17.0 billion inflow from changes
in working capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income
of $19.5 billion, driven by down payments on orders and slot reservation agreements at Power, and down payments at Electrification; and
accounts payable and equipment project payables of $1.5 billion, due to purchases of materials outpacing disbursements, including a
decrease in prepayments, at Electrification and Power; partially offset by inventories of $(2.1) billion, due to higher volume to support
fulfillment and future deliveries, primarily at Power and Wind; and current receivables of $(1.7) billion, driven by net billings across all
segments.
Cash from operating activities of $2.5 billion for the nine months ended September 30, 2025 included a $1.8 billion inflow from changes in
working capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of
$2.4 billion, driven by down payments on orders and slot reservation agreements at Power, and down payments and collections at
Electrification, partially offset by higher net revenue recognition at Wind; accounts payable and equipment project payables of $0.6 billion,
driven by reductions in prepayments and purchases of materials outpacing disbursements primarily at Electrification; current receivables of
$0.6 billion, driven by lower billings and higher utilization of supplier advances at Wind, and collections outpacing billings at Power,
including a decrease in past dues; partially offset by inventories of $(1.0) billion, primarily due to volume to support fulfillment and deliveries
expected in the fourth quarter of 2025 and in 2026 primarily at Gas Power and Onshore Wind; and current contract assets of $(0.7) billion,
driven by revenue recognition exceeding billings on our equipment and other service agreements.
Cash from (used for) investing activities was $(4.7) billion and $(0.4) billion for the nine months ended September 30, 2026 and 2025,
respectively. Cash used for investing activities increased by $4.3 billion in 2026 compared to 2025 primarily driven by: net cash paid for the
acquisition of the remaining 50% stake of Prolec GE of $4.8 billion (net of cash acquired); and higher additions to PP&E and internal-use
software of $0.8 billion; partially offset by proceeds from sales of our remaining interest in China XD Electric Co., Ltd. in 2026 of $0.7 billion,
which is included in All other investing activities; proceeds (net of cash transferred) from the sale of our Proficy business of $0.6 billion; and
higher dispositions of PP&E of $0.2 billion. Cash used for additions to PP&E and internal-use software, which is a component of free cash
flow*, was $1.4 billion and $0.6 billion for the nine months ended September 30, 2026 and 2025, respectively.
Cash from (used for) financing activities was $(4.1) billion and $(2.6) billion for the nine months ended September 30, 2026 and 2025,
respectively. Cash used for financing activities increased by $1.4 billion in 2026 compared to 2025 primarily driven by: higher cash
settlements for share repurchases of $3.1 billion; the repayment of debt acquired in the Prolec GE transaction of $0.4 billion and higher
withholding tax payments on equity stock awards of $0.3 billion, which are both included in All other financing activities; and higher
dividends paid of $0.2 billion; partially offset by net cash from newly issued long-term debt of $2.6 billion in 2026.
Material Cash Requirements. In the normal course of business, we enter into contracts and commitments that oblige us to make
payments in the future. See Notes 7 and 22 in the Notes to the consolidated financial statements for further information regarding our
obligations under lease and guarantee arrangements as well as our investment commitments. See Note 13 in the Notes to the consolidated
financial statements for further information regarding material cash requirements related to our pension obligations.
Debt. Total debt, excluding finance leases, was $2.6 billion and less than $0.1 billion as of September 30, 2026 and December 31, 2025,
respectively, an increase of $2.5 billion, primarily due to long-term debt issued on February 4, 2026. We have a $3.0 billion Revolving Credit
Facility to fund near-term intra-quarter working capital needs as they arise. In addition, we have a $3.0 billion committed trade finance
facility (Trade Finance Facility, and together with the Revolving Credit Facility, the Credit Facilities). The Trade Finance Facility has not
been and is not expected to be utilized, and does not contribute to direct liquidity. We believe that our financing arrangements, future cash
from operations, and access to capital markets will provide adequate resources to fund our future cash flow needs. For further information
about the Credit Facilities, refer to our Current Report on Form 8-K, filed with the SEC on April 2, 2024, and see Note 14 in the Notes to the
consolidated financial statements.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 33
Credit Ratings and Conditions. Interest and fees payable by us under the Revolving Credit Facility are determined in part by our credit
ratings, and our credit ratings and market conditions will influence any future debt financing and may impact our commercial activities and
arrangements. S&P Global Ratings (S&P) and Fitch Ratings (Fitch) have issued credit ratings for the Company. On August 12, 2026, Fitch
upgraded GE Vernova Inc.'s long-term credit rating to A- from BBB+ and issued a Stable outlook. Our credit ratings as of the date of this
filing are set forth in the following table.
S&P
Fitch
Outlook
Positive
Stable
Long-term
BBB
A-
We are disclosing our credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds
and access to credit. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each
rating should be evaluated independently of any other rating. See Item 1A. "Risk Factors-Risks Related to our Customers and Industry
Dynamics" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for a description of some potential
consequences for our credit ratings.
If we are unable to maintain investment grade ratings, we could face significant challenges in being awarded new contracts, substantially
increasing financing and hedging costs, and refinancing risks as well as substantially decreasing the availability of credit. As of September
30, 2026, we estimated an insignificant liquidity impact of a ratings downgrade below investment grade.
Parent Company Credit Support. Prior to the separation from GE, to support GE Vernova businesses in selling products and services
globally, GE often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments
supporting the performance of its subsidiary legal entities transacting directly with customers, in addition to providing similar credit support
for noncustomer related activities of GE Vernova (collectively, the GE credit support). We are working to seek novation or assignment of GE
credit support, the majority of which relates to parent company guarantees, associated with GE Vernova legal entities from GE to GE
Vernova. For GE credit support that remained outstanding at the separation from GE, GE Vernova is obligated to use reasonable best
efforts to terminate or replace, and obtain a full release of GE's obligations and liabilities under, all such credit support. GE Vernova pays
quarterly fees to GE which are determined by amounts associated with GE credit support. GE Vernova is subject to other contractual
restrictions and requirements while GE continues to be obligated under such credit support on behalf of GE Vernova. In addition, while GE
will remain obligated under the contract or instrument, GE Vernova will be obligated to indemnify GE for credit support related payments
that GE is required to make and possible related costs.
As of September 30, 2026, we estimated GE Vernova RPO and other obligations that relate to GE credit support to be approximately $5.4
billion, an over 85% reduction since the separation. We expect approximately $4 billion of the RPO related to GE credit support obligations
to contractually mature by December 31, 2029. The underlying obligations are predominantly customer contracts that GE Vernova performs
in the normal course of its business. We have no known instances historically where payments or performance from GE were required
under parent company guarantees relating to GE Vernova customer contracts.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS. In November 2024, the Financial Accounting Standards Board (FASB)
issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure about specific
types of expenses included in the expense captions presented on the face of the income statement as well as disclosure about selling
expenses. The ASU is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December
15, 2027, with early adoption permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our
consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):
Targeted improvements to the Accounting for Internal-Use Software. The ASU updates the accounting for internal-use software by
eliminating the concept of development stages. Under this updated guidance, software costs are capitalized once management has
authorized and committed funding to the project, and it is probable the project will be completed and the software used as intended. The
ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual periods. We are currently
evaluating the impact that this guidance will have on our consolidated financial statements.
In December 2025, the FASB issued ASU No. 2025-10, Accounting for Government Grants Received by Business Entities. The new
standard establishes guidance on the recognition, measurement, and presentation of government grants received by business entities. The
ASU is effective for fiscal years beginning after December 15, 2028. We are currently evaluating the impact that this guidance will have on
our consolidated financial statements.
CRITICAL ACCOUNTING ESTIMATES. To prepare our consolidated financial statements in accordance with GAAP, management
makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, including our contingent liabilities, as
of the date of our financial statements and the reported amounts of our revenues and expenses during the reporting periods. Our actual
results may differ from these estimates. We consider estimates to be critical (i) if we are required to make assumptions about material
matters that are uncertain at the time of estimation or (ii) if materially different estimates could have been made or it is reasonably likely that
the accounting estimate will change from period to period. See Item 7. "Management's Discussion and Analysis of Financial Condition and
Results of Operations-Critical Accounting Estimates" and Note 2 in the Notes to our audited consolidated and combined financial
statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for additional discussion of accounting policies
and critical accounting estimates.
Except as described below, there have been no material changes to our critical accounting estimates as compared to the critical accounting
estimates disclosed in our audited consolidated and combined financial statements and notes thereto for the fiscal year ended December
31, 2025 in our Annual Report on Form 10-K.
2026 3Q FORM 10-Q 34
Business Combinations. The results of a business acquired in a business combination are included in our consolidated financial
statements as of the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at
their estimated fair values on the acquisition date, which may be considered preliminary and subject to adjustment during the measurement
period, which is up to one year from the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities
assumed is recognized as goodwill.
We perform valuations of assets acquired and liabilities assumed and allocate the purchase price to the respective assets and liabilities.
Determining the fair value of assets acquired and liabilities assumed requires significant judgment and estimates, including the selection of
valuation methodologies, estimates of future revenue, costs, and cash flows, discount rates, royalty rates, and selection of comparable
companies. We engage third-party valuation specialists to assist in concluding on fair value measurements in connection with determining
fair values of assets acquired and liabilities assumed in a business combination. The resulting fair values and useful lives assigned to
acquisition-related intangible assets impact the amount and timing of future amortization expense.
These estimates are inherently uncertain and unpredictable, and if different estimates were used the purchase price for the acquisition
could be allocated to the acquired assets and liabilities differently from the allocation that we have made. In addition, unanticipated events
and circumstances may occur which may affect the accuracy or validity of such estimates, and if such events occur, we may be required to
record a charge against the value ascribed to an acquired asset, an increase in the amounts recorded for assumed liabilities, or an
impairment of some or all of the goodwill. See Note 8 in the Notes to the consolidated financial statements for further information.
NON-GAAP FINANCIAL MEASURES. The non-GAAP financial measures presented in this Quarterly Report on Form 10-Q are
supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition and operating
results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding
GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are
unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide
investors greater transparency to the information used by management for its operational decision-making and allow investors to see our
results "through the eyes of management." We further believe that providing this information assists our investors in understanding our
operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction
with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can
be used by management as one basis for financial, operational, and planning decisions. Finally, these measures are often used by analysts
and other interested parties to evaluate companies in our industry.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by
other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from
company to company. In order to compensate for these and the other limitations discussed below, management does not consider these
measures in isolation from or as alternatives to the comparable financial measures determined in accordance with GAAP. Readers should
review the reconciliations below, and above with respect to free cash flow, and should not rely on any single financial measure to evaluate
our business. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP
financial measures follow.
We believe the organic measures presented below provide management and investors with a more complete understanding of underlying
operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions, and foreign currency,
which includes translational and transactional impacts, as these activities can obscure underlying trends.
ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)
Revenue(a)
Segment EBITDA
Segment EBITDA margin
Three months ended September 30
2026
2025
V%
2026
2025
V%
2026
2025
V pts
Power (GAAP)
$6,067
$4,863
25%
$1,297
$651
99%
21.4%
13.4%
8.0pts
Less: Acquisitions
-
-
-
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
Power organic (Non-GAAP)
$6,061
$4,858
25%
$1,271
$619
F
21.0%
12.7%
8.3pts
Electrification (GAAP)
$3,862
$2,565
51%
$739
$387
91%
19.1%
15.1%
4.0pts
Less: Acquisitions
(3)
Less: Business dispositions
-
-
Less: Foreign currency effect
(2)
Electrification organic (Non-GAAP)
$2,914
$2,518
16%
$521
$332
57%
17.9%
13.2%
4.7pts
Wind (GAAP)
$2,741
$2,647
4%
$72
$(61)
F
2.6%
(2.3)%
4.9pts
Less: Acquisitions
-
-
-
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
(25)
(45)
Wind organic (Non-GAAP)
$2,729
$2,642
3%
$97
$(17)
F
3.6%
(0.6)%
4.2pts
(a) Includes intersegment sales of $41 million and $118 million for the three months ended September 30, 2026 and 2025, respectively.
See Note 24 in the Notes to the consolidated financial statements for further information.
2026 3Q FORM 10-Q 35
ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)
Revenue(a)
Segment EBITDA
Segment EBITDA margin
Nine months ended September 30
2026
2025
V%
2026
2025
V%
2026
2025
V pts
Power (GAAP)
$16,516
$14,097
17%
$3,139
$1,954
61%
19.0%
13.9%
5.1pts
Less: Acquisitions
-
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
Power organic (Non-GAAP)
$16,414
$14,084
17%
$3,122
$1,888
65%
19.0%
13.4%
5.6pts
Electrification (GAAP)
$10,459
$6,566
59%
$1,939
$906
F
18.5%
13.8%
4.7pts
Less: Acquisitions
2,291
(3)
Less: Business dispositions
Less: Foreign currency effect
(4)
Electrification organic (Non-GAAP)
$7,960
$6,424
24%
$1,381
$742
86%
17.3%
11.6%
5.7pts
Wind (GAAP)
$6,200
$6,742
(8)%
$(585)
$(373)
(57)%
(9.4)%
(5.5)%
(3.9)pts
Less: Acquisitions
-
-
-
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
(18)
(102)
(83)
Wind organic (Non-GAAP)
$6,128
$6,760
(9)%
$(483)
$(290)
(67)%
(7.9)%
(4.3)%
(3.6)pts
(a) Includes intersegment sales of $116 million and $324 million for the nine months ended September 30, 2026 and 2025, respectively.
See Note 24 in the Notes to the consolidated financial statements for further information.
Three months ended September 30
Nine months ended September 30
ORGANIC REVENUES (NON-GAAP)
2026
2025
V%
2026
2025
V%
Total revenues (GAAP)
$12,642
$9,969
27%
$33,084
$27,112
22%
Less: Acquisitions
2,291
Less: Business dispositions
-
Less: Foreign currency effect
Organic revenues (Non-GAAP)
$11,676
$9,911
18%
$30,411
$26,976
13%
Three months ended September 30
Nine months ended September 30
EQUIPMENT AND SERVICES ORGANIC REVENUES
(NON-GAAP)
2026
2025
V%
2026
2025
V%
Total equipment revenues (GAAP)
$8,340
$5,880
42%
$20,053
$14,971
34%
Less: Acquisitions
-
2,223
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
(4)
Equipment organic revenues (Non-GAAP)
$7,404
$5,871
26%
$17,609
$14,975
18%
Total services revenues (GAAP)
$4,302
$4,089
5%
$13,031
$12,141
7%
Less: Acquisitions
Less: Business dispositions
-
Less: Foreign currency effect
Services organic revenues (Non-GAAP)
$4,272
$4,039
6%
$12,801
$12,001
7%
We believe that Adjusted EBITDA* and Adjusted EBITDA margin*, which are adjusted to exclude the effects of unique and/or non-cash
items that are not closely associated with ongoing operations, provide management and investors with meaningful measures of our
performance that increase the period-to-period comparability by highlighting the results from ongoing operations and the underlying
profitability factors. We believe Adjusted organic EBITDA* and Adjusted organic EBITDA margin* provide management and investors with,
when considered with Adjusted EBITDA* and Adjusted EBITDA margin*, a more complete understanding of underlying operating results
and trends of established, ongoing operations by further excluding the effect of acquisitions, dispositions, and foreign currency, which
includes translational and transactional impacts, as these activities can obscure underlying trends. We believe these measures provide
additional insight into how our businesses are performing on a normalized basis. However, Adjusted EBITDA*, Adjusted organic EBITDA*,
Adjusted EBITDA margin*, and Adjusted organic EBITDA margin* should not be construed as inferring that our future results will be
unaffected by the items for which the measures adjust.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 36
Three months ended September 30
Nine months ended September 30
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (NON-
GAAP)
2026
2025
V%
2026
2025
V%
Net income (loss) (GAAP)
$1,289
$453
F
$6,687
$1,209
F
Add: Restructuring and other charges
Add: (Gains) losses on purchases and sales of business interests(a)
(36)
(113)
(4,481)
(131)
Add: Separation costs(b)
Add: Non-operating benefit income
(212)
(115)
(465)
(340)
Add: Depreciation and amortization(c)
1,199
Add: Interest and other financial (income) charges - net(d)(e)
(71)
(44)
(171)
(141)
Add: Provision (benefit) for income taxes(e)
1,119
Adjusted EBITDA (Non-GAAP)
$1,943
$811
F
$4,089
$2,038
F
Net income (loss) margin (GAAP)
10.2%
4.5%
5.7 pts
20.2%
4.5%
15.7 pts
Adjusted EBITDA margin (Non-GAAP)
15.4%
8.1%
7.3 pts
12.4%
7.5%
4.9 pts
(a) Includes a pre-tax gain of $3,992 million in the nine months ended September 30, 2026 related to the acquisition of the remaining 50%
stake in Prolec GE from Xignux as a result of the remeasurement of our previously held equity interest to fair value and an expense of
$106 million for the impact of a fair value adjustment to Prolec GE inventory that was recorded in Cost of equipment in the nine months
ended September 30, 2026. Includes a pre-tax gain of $366 million related to the sale of our Proficy business in our Electrification
segment in the nine months ended September 30, 2026. Also includes unrealized and realized (gains) losses related to our interest in
China XD Electric Co., Ltd, which we sold the remainder of in 2026 and was recorded in Net interest and investment income (loss)
which is part of Other income (expense) - net. See Note 19 for further information.
(b) Costs incurred in the separation from GE, including system implementations, advisory fees, one-time stock option grant, and other
one-time costs.
(c) Excludes depreciation and amortization expense related to Restructuring and other charges. Includes amortization of basis differences
included in Equity method investment income (loss) which is part of Other income (expense) - net.
(d) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business
operations primarily with customers.
(e) Excludes interest (income) expense of zero and zero and provision (benefit) for income taxes of $(3) million and zero for the three
months ended September 30, 2026 and 2025, respectively, as well as excludes interest (income) expense of zero and $(1) million and
provision (benefit) for income taxes of $3 million and $4 million for the nine months ended September 30, 2026 and 2025, respectively,
related to our Financial Services business which, because of the nature of its investments, is measured on an after-tax basis.
Three months ended September 30
Nine months ended September 30
ADJUSTED ORGANIC EBITDA AND ADJUSTED ORGANIC EBITDA
MARGIN (NON-GAAP)
2026
2025
V%
2026
2025
V%
Adjusted EBITDA (Non-GAAP)
$1,943
$811
F
$4,089
$2,038
F
Less: Acquisitions
(3)
(2)
Less: Business dispositions
-
Less: Foreign currency effect
(15)
(112)
(13)
Adjusted organic EBITDA (Non-GAAP)
$1,721
$770
F
$3,638
$1,894
92%
Adjusted EBITDA margin (Non-GAAP)
15.4%
8.1%
7.3 pts
12.4%
7.5%
4.9 pts
Adjusted organic EBITDA margin (Non-GAAP)
14.7%
7.8%
6.9 pts
12.0%
7.0%
5.0 pts
See "-Capital Resources and Liquidity" for discussion of free cash flow*.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 37
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