GEV 2Q26: Strong orders and Backlog, Debate Centers around Capacity Expansion

研报英文原文证据摘录

GEV 2Q26: Strong orders and Backlog, Debate Centers around Capacity Expansion

Sunaina Ocalan .+1 917 344 8503 sunaina.ocalan@bernsteinsg.com 23 July 2026

DETAILS

POWER: GEV IS STARING AT STRONG POWER DEMAND

Capacity Overbuild/ Peak Demand Debate:

We think the market overreacted to the capacity expansion - power demand is expected to grow at an unprecedented rate and

GEV is reacting to the strong demand. We think the supply glut narrative is misplaced as the market for heavy-duty turbines

continues to be tight. Orders remain strong and GEV has exceptional SRA to order conversion, driven by high demand and aided

by the ~15-20% down payments they receive on SRAs (driving FCF windfall).

The company is stepping up gas turbine output from ~3 GW/quarter to 5 GW/quarter starting Q3 2026 (20 GW annualized), en

route to a 24 GW annualized run-rate in 2028 and today’s disclosed 30 GW annualized run-rate target in 2030. This increase

is capital-light — 325 machines are already installed in gas factories, with ~400 expected by year-end, as they leverage lean

manufacturing, added shifts, and robotics and automation. The incremental 6GW announced today will all be heavy-duty

turbines.

Customer Mix:

We like GEV’s continued focus on maintaining a diverse customer base. Data centers are ~20% of their existing customer base,

with traditional customers making up the remaining 80%. Their ~50% US exposure enables them to make the most of the US

led data center demand, while their100 distinct customers spread across 26 countries (for GW under contract) gives them

diverse demand exposure.

ELECTRIFICATION: CROSS-SELLING POWER DEMAND

Electrification orders were $6.3B in Q2. Data center-linked orders in Electrification reached over $5B in H1'26 — more than

double all of 2025 orders.