AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Long maintenance agreements and substantive cancellation penalties support a bounded service advantage. Power services demand corroborates it, but comparative switching costs and a structural advantage across equipment businesses are unestablished.
durability · 3/4 · Disclosed 5–25-year maintenance terms and growing Power services backlog provide strong evidence of multiyear persistence. They do not demonstrate guaranteed profitability, renewals after expiry or exceptional durability.
customer dependency · 3/4 · Customers' growing investment in existing plants, increased Power parts demand and long maintenance commitments demonstrate continuing dependence. This is indirect operating and contractual evidence rather than a measured retention rate.
erosion resilience · 2/4 · Power pricing and productivity have supported growth despite inflation, but Wind's higher contract losses and continuing project pressures show uneven resilience. Technological substitution is a prospective risk, not a demonstrated loss of the Power advantage.
Pricing power63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · Reported Power equipment and services results explicitly include favorable pricing, alongside favorable price contributions in Electrification. These are realized operating outcomes, although price effects are not isolated quantitatively and do not establish superiority across a full cycle.
retention · 3/4 · Long maintenance terms, cancellation friction, growing Power services backlog and higher parts purchases support repeat demand while favorable pricing is realized. Retention is assessed indirectly; no renewal or churn percentage is disclosed.
margin resilience · 2/4 · Power and Electrification operating improvements demonstrate some ability to absorb inflation and investment costs. Higher Wind contract losses, tariff impacts and project costs prevent a strong company-wide assessment. Acquisition-related gains are not treated as pricing resilience.
contractual freedom · 2/4 · Realized favorable pricing and substantive cancellation penalties indicate some commercial bargaining ability. However, long maintenance obligations, utilization-based payments and government termination rights constrain flexibility. Unilateral repricing rights and comprehensive cost pass-through are not established.
Predictability—
Five consecutive annual periods are required for predictability; the accepted history is incomplete.
Financial strength—
Missing required inputs: netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 100.00
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 18.52
- Debt / FCF (x)
- 0.09
- Current ratio (x)
- 0.98
- cashInterestPaid
- 53.00
- cashInterestCoverage
- 94.09
Capital allocation—
Missing annual observations required by this category.
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual operating cash generation, capital investment and shareholder distributions establish active capital management. The substantial acquisition, related debt issuance and expected rather than demonstrated synergies make discipline mixed. Customer advances contribute to cash generation; neither buybacks nor acquisition accounting gains prove attractive investment returns.
incentive alignment · 3/4 · Disclosed incentive arrangements use cash flow, EBITDA and relative shareholder returns, with capped payouts, equity exposure, ownership guidelines and clawback safeguards. An actual negative safety modifier demonstrates accountability. Maximum annual payouts despite that modifier and absent beneficial ownership amounts limit the assessment.
execution · 2/4 · Organic Power growth, productivity improvements and completed Vineyard Wind turbine installation demonstrate achievements. Higher Wind contract losses, continuing project pressure and four worker fatalities establish material shortcomings. Execution is assessed from operating outcomes; commissioning completion and acquisition synergies are not assumed.
governance · 2/4 · An independent chair, majority-independent board, clawback provisions, no dual-class shares and disclosed shareholder rights provide meaningful safeguards. The classified board through 2029 limits accountability. Actual compensation oversight is evidenced, but exceptional governance effectiveness is not established.
Evidence
We have long-term service agreements with our customers within our Power and Wind segments that require us to maintain the customers’ assets over the contract terms, which generally range from 5 to 25 years.
Revenue Recognition on Service Agreements: Power and Wind contract duration · Filed 29/01/2026
RPO, a measure of backlog, includes unfilled firm and unconditional customer orders for equipment and services, excluding any purchase
Results of Operations: RPO definition · Filed 22/07/2026
order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty.
Results of Operations: substantive cancellation penalty requirement · Filed 22/07/2026
Services, both a major business and source of cash flow for GE Vernova, also delivered a strong year with our Power services backlog reaching $70 billion, up $9 billion year-over-year, as our customers invest into their existing plants.
Executive Compensation: 2025 Power services backlog and existing-plant investment · Filed 03/04/2026
Services revenues increased at Power, due to increases at Gas Power and Nuclear Power from higher parts volume and favorable pricing; at Wind, due to an increase at Onshore Wind from higher transactional volume; and at Electrification.
Results of Operations: services volume and favorable pricing · Filed 22/07/2026
Segment revenues increased $1.1 billion (12%) organically*, primarily at Gas Power equipment due to higher Heavy-Duty Gas Turbine and Aeroderivative deliveries and favorable pricing, and increases at Gas Power and Nuclear Power services due to higher parts volume and favorable pricing.
Power segment: organic revenue growth, equipment deliveries, parts demand and pricing · Filed 22/07/2026
Segment EBITDA increased $0.6 billion (46%) 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.
Power segment: organic EBITDA growth and operating drivers · Filed 22/07/2026
This requires us to make estimates of customer payments expected to be received over the contract term as well as the costs to perform required maintenance services.
Service agreement accounting: estimated customer payments and maintenance costs · Filed 29/01/2026
Customers generally pay us based on the utilization of the asset (per hour of usage for example) or upon the occurrence of a major maintenance event within the contract.
Service agreement accounting: utilization and maintenance-event payment terms · Filed 29/01/2026
For the six months ended June 30, 2026, operating income (loss) was $0.8 billion, a $0.4 billion increase, primarily due to: an increase in segment results at Electrification of $0.7 billion, primarily due to volume, productivity, and favorable price at Power Transmission and Grid Systems Integration; and at Power of $0.5 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; partially offset by a decrease at Wind of $(0.3) billion, primarily at Onshore Wind due to lower equipment deliveries and the impact of tariffs, and at Offshore Wind due to higher contract losses, partially offset by lower costs at Onshore Wind services; and an increase in depreciation and amortization expense across all segments of $0.4 billion.
Six-month operating results: Power and Electrification improvements versus Wind deterioration · Filed 22/07/2026
Further, breakthrough technologies deployed at scale by competitors may reduce the demand for legacy products and technologies.
Risk Factors: potential competitive technological substitution · Filed 29/01/2026
Many government entities can terminate contracts for convenience or for default and their ongoing business with us may be subject to
Risk Factors: government contract termination rights · Filed 29/01/2026
Three months ended June 30 Six months ended June 30 EARNINGS (LOSS) 2026 2025 2026 2025 Operating income (loss) $653 $378 $833 $421 Net income (loss) 649 492 5,398 756 Net income (loss) attributable to GE Vernova 668 514 5,413 768 Adjusted EBITDA* 1,250 770 2,146 1,227 Diluted earnings (loss) per share $2.47 $1.86 $19.96 $2.77 For the three months ended June 30, 2026, operating income (loss) was $0.7 billion, a $0.3 billion increase, primarily due to: an increase in segment results at Electrification of $0.4 billion, primarily due to volume, productivity, and favorable price at Power Transmission and Power Conversion & Storage; and at Power of $0.2 billion, primarily at Gas Power due to higher volume and favorable pricing, partially offset by the impact of inflation; partially offset by a decrease at Wind of $(0.1) billion, primarily at Onshore Wind due to lower equipment deliveries and at Offshore Wind due to higher project costs, partially offset by lower costs at Onshore Wind services; and an increase in depreciation and amortization expense across all segments of $0.2 billion.
Quarterly operating results: pricing, productivity, inflation and Wind project costs · Filed 22/07/2026
On January 27, that pause was lifted and during the first quarter of 2026, we successfully completed the installation of all remaining wind turbines at the Vineyard Wind project and now have moved on to the remaining commissioning activities.
Offshore Wind: completed Vineyard Wind turbine installation and remaining commissioning · Filed 22/07/2026
Free Cash Flow (Non-GAAP) 2025 Cash from (used for) operating activities (GAAP) $ 4,987 Add: Gross additions to property, plant, and equipment and internal-use software (1,277) Free cash flow (Non-GAAP) $ 3,710 94 GE Vernova Appendix: Explanation of Non-GAAP Financial Measures and Performance Metrics •Total Company Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Organic EBITDA and Adjusted Organic EBITDA Margin: 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.
Appendix: 2025 operating cash flow, capital expenditures and free cash flow reconciliation · Filed 03/04/2026
and current deferred income of $5.2 billion, primarily due to higher down payments on orders and slot reservation agreements at Power;
Liquidity: customer down payments and slot reservations contributing to cash flow · Filed 29/01/2026
Cash flows from (used for) operating activities were $10.7 billion and $1.5 billion for the six months ended June 30, 2026 and 2025, respectively.
Summary of Results: six-month operating cash flows · Filed 22/07/2026
Cash used for investing activities increased by $3.8 billion in 2026 compared to 2025 primarily driven by: net cash paid for the acquisition of the remaining 50% stake of Prolec GE of $4.9 billion (net of cash acquired); and higher additions to PP&E and internal-use software of $0.4 billion; partially offset by proceeds from sales of our remaining interest in China XD Electric Co., Ltd.
Investing cash flows: acquisition spending and increased capital investment · Filed 22/07/2026
Cash used for additions to PP&E and internal-use software, which is a component of free cash flow*, was $0.8 billion and $0.4 billion for the six months ended June 30, 2026 and 2025, respectively.
Investing cash flows: actual PP&E and internal-use software expenditures · Filed 22/07/2026
Cash used for financing activities increased by $0.4 billion in 2026 compared to 2025 primarily driven by: higher cash settlements for share repurchases of $2.1 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 $0.1 billion; partially offset by net cash from newly issued long-term debt of $2.6 billion in 2026.
Financing cash flows: repurchases, debt issuance, acquired debt repayment and dividends · Filed 22/07/2026
The following table summarizes the preliminary purchase consideration as well as the preliminary allocation to the assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition: Cash consideration transferred $5,254 Fair value of previously held 50% equity interest 4,402 Total preliminary purchase consideration $9,656 Current assets $1,654 Intangible assets 4,172 Other non-current assets 1,123 Current liabilities (1,078) Non-current liabilities (1,528) Total identifiable net assets acquired $4,343 Goodwill 5,313 Total preliminary purchase consideration $9,656 Goodwill is calculated as the excess of the purchase consideration over the estimated fair value of net assets acquired and primarily represents the value of the assembled workforce along with expected synergies from integrating Prolec GE’s operations with the Company’s operations.
Acquisition accounting: purchase consideration, goodwill and expected synergies · Filed 22/07/2026
After separately considering the design of each program, the CHCC selected organic revenue* growth, free cash flow*, Adjusted EBITDA*, a safety and sustainability modifier (+/- 10%), and an individual performance modifier (0-150%) as its 2025 AIP performance metrics, and free cash flow*, Adjusted EBITDA*, and a rTSR modifier as its 2025-2027 LTI performance metrics.
Executive Compensation: adopted 2025 annual and 2025–2027 long-term incentive metrics · Filed 03/04/2026
Target Compensation Compensation best practices What We Do What We Do Not Do CHCC oversight of incentive metrics, goals and pay/performance relationship, including annual review of compensation structure Annual Incentive Plan (AIP) and Long-Term Incentive (LTI) payouts are capped at a maximum level (200% of target), discouraging inappropriate risk-taking Provide a performance-based annual target LTI mix which includes 50% performance stock units, 30% restricted stock units, and 20% stock options Independent compensation consultant Annually review risks associated with compensation programs Maintain robust stock ownership guidelines for both directors and executives Clawback policy Include a “double-trigger” change in control provision in our executive Change in Control plan CEO pay approved by independent directors We do not allow pledging or hedging of Company shares We do not provide tax gross-ups on change-in-control benefits We do not allow backdating, repricing or granting of option awards retroactively We do not count unvested options or unvested performance stock units towards stock ownership guidelines We do not provide excessive perquisites to our NEOs 10 GE Vernova Proxy Summary 3 Ratification of the Appointment of Deloitte & Touche LLP as Our Independent Auditor for the Fiscal Year Ending December 31, 2026 The Board recommends a vote FOR this proposal.
Proxy Summary: incentive caps, equity mix, ownership guidelines and compensation safeguards · Filed 03/04/2026
As a result, the CHCC approved the application of a -10% Safety and Sustainability Modifier to the results for the Total Company, and Power and Wind segments, which impacted the AIP payouts of Messrs.
Executive Compensation: approved negative safety and sustainability modifier · Filed 03/04/2026
Our safety performance did not meet expectations, as the Company experienced 4 worker fatalities across the Power and Wind segments.
Executive Compensation: four worker fatalities in 2025 · Filed 03/04/2026
Key Corporate Governance Practices •Majority of independent directors, with a goal of at least two-thirds independent; all director nominees are independent •Election of directors by majority vote in uncontested elections •No supermajority provisions in governing documents •Independent non-executive Chair of the Board •Chair oversees the Board’s periodic review of its leadership structure •Annual Board and committee self-evaluations •Board-level oversight of sustainability matters •Mandatory retirement age for directors •Regular executive sessions of independent directors •Board and committees may engage outside advisors independent of management •Clawback policy that applies to all cash and equity incentive awards •Prohibitions against hedging and pledging •Robust stock ownership and retention requirements •Limits on director outside board commitments (overboarding) •No poison pill or dual-class shares •Stockholder right to call special meetings with 25% ownership •Proxy access provisions Meeting Attendance Directors are expected to attend all meetings of the Board, meetings of the committees on which they serve, and the Annual Meeting of Stockholders.
Corporate Governance: board independence, shareholder rights and safeguards · Filed 03/04/2026
Until the conclusion of the 2029 annual meeting of stockholders, our Board is divided into three classes, with each class consisting of one-third of the total number of directors.
Director elections: classified board through the 2029 annual meeting · Filed 03/04/2026
(2)Mr. Strazik and Mr. Piron’s AIP payout was capped at 200% given Business and Individual Performance Factors exceeding overall payout cap of 200%.
Executive Compensation: actual CEO and Electrification executive annual payouts capped at 200% · Filed 03/04/2026
Net income (loss) and Net income (loss) margin were $5.4 billion and 26.4%, respectively, for the six months ended June 30, 2026, an increase of $4.6 billion and 22.0%, respectively, for the year, primarily due to an increase in other income (expense) - net of $4.6 billion driven by a $4.0 billion pre-tax gain related to the acquisition of Prolec GE and a $0.3 billion pre-tax gain related to the sale of our Proficy manufacturing software business (Proficy), and an increase in operating income (loss) of $0.4 billion, partially offset by an increase in provision for income taxes of $0.4 billion.
Six-month earnings: acquisition remeasurement and business-sale gains · Filed 22/07/2026
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.
Offshore Wind: continuing project cost and execution timeline pressure · Filed 22/07/2026
