GE Vernova’s wind business contracted 40% while its gas turbine division boomed, reflecting a broader utility shift toward dispatchable thermal generation.

GE Vernova (NYSE: GEV), which was spun off from General Electric (NYSE: GE) two years ago, posted impressive second-quarter earnings in late July. Revenue rose 22% year over year to $11.1 billion, beating analyst estimates by $330 million, while total organic orders surged 88% to $24.2 billion. Within that total, orders for the Power and Electrification segments jumped 134% and 66% organically, respectively. The artificial intelligence boom has driven utilities to accelerate purchases of the Power segment’s gas turbines and the Electrification segment’s grid equipment.

Meanwhile, the Wind segment, which manufactures onshore and offshore wind turbines, reported a 40% decline in organic orders. Despite this steep drop, market focus remains elsewhere. In the second quarter, Wind accounted for just 5% of GE Vernova’s total orders, down from 13% of its total orders in 2025. The contraction stems from a combination of operational, macroeconomic, and demand-side challenges. The division experienced significant quality-control setbacks, including high-profile turbine failures at the Vineyard Wind and Dogger Bank projects. Simultaneously, soaring inflation and persistent supply chain bottlenecks compressed margins across both onshore and offshore developments. Because many of these projects were locked into fixed-price contracts, the company could not adjust prices to offset the pressure. Instead, it downsized its offshore operations and declined to bid on higher-risk ventures—a cautious approach that reduced order volume and revenue.

The Wind segment remains a drag on GE Vernova’s profitability. During the first half of 2026, it posted a negative adjusted EBITDA margin of 19%, compared to a 7% loss in the first half of 2025. Management is not alarmed by the downturn, however. The robust growth and expanding profits from the Power and Electrification divisions—fueled by AI tailwinds—are more than sufficient to absorb the Wind unit’s sluggish performance and widening losses. In the first half of 2026, Power and Electrification posted positive adjusted EBITDA margins of 17.6% and 18.2%, respectively, compared to 14.1% and 13% in the first half of 2025. Rather than diverting capital to turnaround the Wind business, GE Vernova is allocating resources toward its higher-performing segments. While investors should monitor the underperforming division, it does not constitute a fundamental red flag for the stock.

Before investing in GE Vernova, consider this: The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks for investors to buy now, and GE Vernova was not among them. The selected stocks could produce substantial returns in the coming years. For context, when Netflix appeared on this list on December 17, 2004, a $1,000 investment at the time of recommendation would have grown to $421,511.* When Nvidia appeared on the list on April 15, 2005, a $1,000 investment would have reached $1,381,960.* Additionally, a “Double Down” signal last flashed for Nvidia in 2009; for the first time in years, the same “Total Conviction” signal is now active for a company one-hundredth the size of Nvidia. To date, Stock Advisor’s average return stands at 981%, significantly outperforming the S&P 500’s 216%. Readers can access the latest top-ten recommendations through a Stock Advisor subscription.

*Stock Advisor returns are calculated as of August 17, 2026. Leo Sun holds no position in any of the mentioned securities. The Motley Fool maintains positions in and recommends shares of GE Aerospace and GE Vernova. The Motley Fool operates under a standard disclosure policy.