GE Vernova's CEO Just Delivered Great News to Shareholders

GE Vernova's (NYSE: GEV) CEO, Scott Strazik, recently gave a presentation at a Morgan Stanley conference, and his remarks were bullish on the stock and the company's future prospects. It was a series of subtly positive comments on the business that fell short of a guidance hike, but gave investors plenty of reason to raise earnings expectations. Here's why.

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What Scott Strazik said

For reference, GE Vernova operates out of three segments: power (mainly gas turbine equipment and services), responsible for $2.9 billion in earnings before interest, taxation, depreciation, and amortization (EBITDA) in 2025; electrification (mainly electrical grid solutions), responsible for $1.4 billion in EBITDA in 2025; and finally wind (mainly onshore wind turbines), which lost $598 million in EBITDA in 2025.

• Strazik pulled forward expectations for the company's backlog to hit $200 billion in 2027, moving it to "very early in 2027."
• He also noted that "$200 billion is a very humble milestone on the trajectory we see toward growing to a much larger and more profitable business."
• Within power, he noted that GE Vernova had 40 gigawatts (GW) of orders in the first half and that the current guidance is for 20 GW in the second half, but "Now 20 gigawatts is likely to prove to be conservative for the second half of the year."
• Strazik affirmed that all three segments would see margin growth in their 2026 backlog, with GE Vernova reaching a "profitability pivot point" in wind.

What it all means for investors

The first three points clearly indicate that orders and backlog momentum for the overall company and power are improving, with no signs of slowing. Moreover, the commentary that $200 billion is a "humble" milestone suggests GE Vernova investors should raise expectations for the company's backlog. Moreover, it's clear there's upside potential for power orders in the second half, and investors should watch what Strazik says in the upcoming third-quarter results presentation.

However, the most interesting point is the affirmation that backlog margin is growing, because a growing backlog combined with rising profitability in that margin implies margin expansion down the line.

Strazik even broke out the expected backlog margin expansion as "larger" in 2026 than the double-digit expansion in 2025. The margin in the electrification backlog will be modest, but there's "a healthy positive change in margin and backlog in wind."

While there's no guarantee the wind segment will start generating earnings again in 2027, GE Vernova appears to be successfully working through the loss-making offshore wind contracts it previously took on. The wind power end-market outlook remains soft, but GE Vernova's profitability in it is turning around, and Strazik argued it has an opportunity to repower its existing installed base.

What's next for GE Vernova?

Investors are likely to see improving orders, backlog, and margin momentum in gas turbines driven by artificial intelligence data center demand. Electrification orders (up 76% in the first half of 2026) and backlog (up 64% in the second quarter) are booming, and new products will soon be added to the order book. And wind profitability is turning around. All of these point to a bright future for GE Vernova.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool has a disclosure policy.