GE Vernova (NYSE:GEV) shares surged more than 13% after it reported stronger-than-expected first quarter results driven by robust order growth and improving profitability and raised its full-year guidance.
The company posted revenue of $9.34 billion for the quarter, slightly ahead of analyst expectations of about $9.3 billion.
Adjusted earnings per share came in at $1.98, above the estimated $1.84.
Net income reached $4.7 billion, with a net income margin of 50.9%, supported in part by gains tied to portfolio transactions.
Adjusted EBITDA nearly doubled year-over-year to $0.9 billion, while the margin expanded to 9.6%, an increase of 390 basis points compared with the prior year.
Cash generation strengthened significantly, with $5.2 billion in operating cash flow and $4.8 billion in free cash flow, more than quadrupling from a year earlier. The company ended the quarter with a $10.2 billion cash balance and returned $1.4 billion to shareholders during the period.
Order intake was a key driver of performance, rising 71% year-over-year to $18.3 billion, with growth across all segments. The Power segment recorded $10 billion in orders, up 59%, while Electrification orders increased 86% to $7.1 billion.
Backlog increased by $13 billion sequentially, including contributions from Prolec GE, while Gas Power equipment backlog and slot reservation agreements rose from 83 to 100 gigawatts. The company now expects that figure to reach at least 110 gigawatts by the end of 2026.
Reflecting the strong start to the year, GE Vernova raised its full-year 2026 guidance. It now expects revenue of $44.5 billion to $45.5 billion, up from $44 billion to $45 billion previously, and adjusted EBITDA margins of 12% to 14%, compared with 11% to 13% earlier.
Free cash flow guidance was also increased to $6.5 billion to $7.5 billion, up from $5 billion to $5.5 billion.
Segment outlooks were also updated, with Power expected to deliver 16% to 18% organic revenue growth and margins of 17% to 19%, while Electrification revenue is projected at $14 billion to $14.5 billion with margins of 18% to 20%.
The Wind segment is expected to remain under pressure, with low double-digit revenue declines and about $400 million in segment EBITDA losses.