GE Vernova files 10-Q: quarterly report (10-Q)

OPERATIONS . The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements, which are prepared in conformity with U.S. generally accepted accounting principles (GAAP), and corresponding notes included elsewhere in this Quarterly Report on Form 10-Q . The following discussion and analysis provides information that management believes to be relevant to understanding the financial condition and results of operations of the Company for the three and six months ended June 30, 2026 and 2025 . The below discussion should be read alongside Item 7. "Management’s

Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated and combined financial statements and corresponding notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 . Unless otherwise noted, tables are presented in U.S. dollars in millions, except for per-share amounts which are presented in U.S. dollars. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from the underlying numbers in millions. Unless otherwise noted, statements related to changes in operating results relate to the corresponding period in the prior year.

In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with GAAP. Certain of these data are considered “non-GAAP financial measures” under SEC rules. For the reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures, see " — Non-GAAP Financial Measures." Prolec GE. On February 2, 2026, we completed the acquisition of the remaining 50% stake of Prolec GE, our former unconsolidated joint venture with Xignux, in exchange for cash consideration of approximately $5.3 billion. Prolec GE is an electric industry leader in North

America, with approximately 10,000 employees across seven manufacturing sites in the Americas, including five in the U.S. It produces a wide variety of transformers and transformer components for the generation, transmission, and distribution of electricity, complemented by its broad transformer services offering. Net assets and results of operations of Prolec GE are included in our results commencing on

February 2, 2026 and are reported within the Electrification segment. As a result of this acquisition, we remeasured our previously held equity interest to fair value, with the resulting pre-tax gain of $4.0 billion recognized within Other income (expense) – net in our

Consolidated Statement of Income (Loss) during the first quarter of 2026.

Long-term Borrowings. On February 4, 2026, we issued $2.6 billion aggregate principal amount of senior notes, consisting of $0.6 billion, $1.0 billion, and $1.0 billion due February 2031, 2036, and 2056, respectively. The proceeds from the debt offering were used for general corporate purposes, including financing a portion of the acquisition of the remaining 50% stake of Prolec GE.

Offshore Wind. At Offshore Wind, we continue to experience pressure related to our project costs and execution timelines, as we deliver on our existing backlog. On December 22, 2025, the United States Department of Interior announced that it was pausing the leases for all large-scale offshore wind projects under construction in the United States, which had a direct impact on the Vineyard Wind project completion timeline. On January 27, that pause was lifted and during the first quarter of 2026, we successfully completed the installation of all remaining wind turbines at the Vineyard Wind project and now have moved on to the remaining commissioning activities. As we work through the final stages of the project, we are working with our customer to resolve outstanding claims and counterclaims.

Tariffs. Throughout 2025 and 2026, the United States and other countries imposed global tariffs. These tariffs have resulted, and any future tariffs will result, in additional costs to us. The current total estimated cost impact from the global tariffs as outlined is approximately

$100 million to $200 millio n in 2026 , after taking into consideration contractual protections and mitigating action s, including pursuing the recovery of certain tariffs. The actual impacts of tariffs may be significantly different than our current estimate. Our estimate is subject to several factors including the amount, duration, and scope a nd nature of the tariffs, countermeasures that countries take, mitigating or other actions we take, and contractual implications.

Business Unit Realignment. Effective January 1, 2026, we realigned the reporting of certain of our business units. Historical financial information presented within this report conforms to the new business unit structure within the Power, Electrification, and Wind segments.

• Within our Power segment, our Steam Power business unit was realigned into Nuclear Power, Hydro Power, and Gas Power. In addition, a component of our former Electrification Software business unit was realigned into Gas Power.

• Within our Electrification segment, we revised our Grid Solutions business unit into three new business units, Power Transmission, Grid Systems Integration, and Grid Automation & Software. In addition, a component of our former Electrification Software business unit was realigned into Grid Automation & Software and another component was realigned into Gas Power within our Power segment.

• Within our Wind segment, we combined our Onshore Wind and LM Wind Power business units into Onshore Wind.

TRENDS AND FACTORS IMPACTING OUR PERFORMANCE. We believe our performance and future success depends on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below.

Our worldwide operations are affected by regional and global factors impacting energy demand, including industry trends like decarbonization, an increasing demand for renewable energy alternatives, governmental regulations and policies, and changes in broader economic and geopolitical conditions. These trends, along with the growing focus on the digitization and sustainability of the electricity infrastructure, can impact performance across each of our business segments. We believe that our industry-defining technologies and commitment to innovation position us well to capitalize on, as well as mitigate adverse impacts from, these long-term trends:

• Demand growth for electricity generation – Significant investment, infrastructure, and supply diversity will be essential to help meet forecasted energy demand growth arising from population and global economic growth.