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Research evidence excerpt

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Asia Pacific Equity Research

This material is neither intended to be distributed to Mainland China investors nor to provide securities

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China/HK First to Market 23 July 2026

Asia Power Equipment, United States, South Korea, China (Stephen Tsui, CFA)

Read-through from GE Vernova’s 2Q26 results

While GE Vernova (GEV.US; covered by Mark Strouse, OW) reported robust new-order growth and strong

operating trends, the shares were down pre-market at the time of writing, alongside peers such as Siemens

Energy, potentially reflecting concerns that gas-turbine order wins are nearing a plateau and end-of-decade

oversupply risk (see note by our European Capital Goods analyst). Yet our Capital Goods analyst

highlighted the strong conversion of GEV’s slot reservations into orders, with demand/supply fundamentals

healthy through the end of the decade, and management also said on the call that they see a clear pathway

to grow turbine orders into 2027. Electrification momentum remains strong, with ~30% organic revenue

growth YoY and ~4ppt EBITDA margin expansion; management cited substantial growth in switchgear,

substations, transformers, and HVDC equipment, and expects 3Q EBITDA margin to expand sequentially.

Data-center orders were exceptionally strong at US$5bn (~2x FY25), suggesting demand remains robust

despite project-delay concerns. Overall, the results—especially Electrification—reinforce our positive view

on order wins, margin expansion, and the data-center opportunity for transmission equipment; we maintain