GE Vernova's wind failures overshadow the strong performance of power and electrification units

GE Vernova announced on Wednesday that the wind power unit'might suffer a revenue loss of about $250 million this year as a result of 'installation delays in an offshore Massachusetts project. It also said that it was expecting a reduction in its order backlog.

The company stated that the failure to install eleven turbines at Vineyard Wind could result in a revenue drop of low double digits and $400 million in losses. The total number of turbines for the project is 62.

GE Vernova expects the margins for the wind unit to be stable in 2026, despite the lower outlook.

The wind update overshadowed a strong end to 2025. In choppy, early trading, the company's shares rose marginally to $696.95.

Tariffs that went into effect in the'second quarter last year' also impacted results by approximately $70 million. This added pressure to the wind business for the quarter.

The demand for its power and electrification unit remained high, as it continues to benefit from the rising electricity consumption driven by data centers, artificial intelligence, and broader electrification.

On a conference phone, CEO Scott Strazik stated that the company has signed over $2 billion in electrification orders tied directly to 'data centers' in 2025. He also said he expects significant growth in the electrification and power businesses in 2026.

Gas power equipment backlog and slot reservations agreements increased to 83 gigawatts from 62 GW in the previous quarter.

Strazik said GE Vernova would enter 2026 with a "significant momentum," citing improved margins?and a strong demand across the power platform.

According to LSEG Data, the company anticipates revenue in 2026 between $44 and $45 billion. This is higher than average analyst estimates of $41.97billion. (Reporting from Vallari Srivastava in Bengaluru and Sumit S. Saha; editing by Anil D. Silva)

(source: Reuters)