GE Vernova's Wind Business Just Fell 40%. Nobody's Talking About It Because of the Gas Turbine Boom.
Key Points
GE Vernova’s Power and Electrification businesses are firing on all cylinders.
Its Wind business is still its weakest link.
GE Vernova (NYSE: GEV), which was spun off from General Electric (NYSE: GE) two years ago, posted some impressive numbers in its second-quarter earnings report in late July. Its revenue rose 22% year over year to $11.1 billion, beating analysts' estimates by $330 million, while its total orders surged 88% organically to $24.2 billion.
Within that total, GE Vernova's Power and Electrification orders surged 134% and 66% organically. The AI boom drove more utilities to purchase the Power segment's gas turbines and the Electrification segment's grid equipment.
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However, the Wind segment -- which sells onshore and offshore wind turbines -- posted a 40% decline in its organic orders. Let's see why nobody seems to be worried about that steep drop.
Why is GE Vernova's Wind business declining?
GE Vernova's Wind segment only accounted for 5% of its total orders in the second quarter. That's down from 13% of its total orders in 2025. A combination of operational, macroeconomic, and demand-related challenges caused that decline.
It experienced significant quality-control issues, including high-profile turbine failures at its Vineyard Wind and Dogger Bank projects. At the same time, soaring inflation and persistent supply chain bottlenecks compressed the margins of its onshore and offshore projects.
Since many of those projects were locked into fixed-price contracts, it couldn't simply adjust its prices to offset the pressure. Instead, it downsized its offshore business and refused to bid on higher-risk projects -- but that cautious approach reduced its orders and revenue.
The Wind Segment also remains a dead weight on GE Vernova's bottom line. In the first half of 2026, it posted a negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 19%, compared to a negative 7% in the first half of 2025.
Why isn't anyone worried about the Wind segment?
GE Vernova isn't fretting over the Wind segment's decline because its Power and Electrification segments, which are riding high on AI tailwinds, can easily offset its sluggish growth and widening losses. In the first half of 2026, its Power and Electrification segments posted positive adjusted EBITDA margins of 17.6% and 18.2%, respectively, compared to their adjusted EBITDA margins of 14.1% and 13%, respectively, in the first half of 2025.
Instead of spending too much time trying to turn around its Wind business, GE Vernova is allocating more of its capital toward the Power and Electrification segments. So while investors should keep an eye on that weak link, they shouldn't consider it a red flag for the stock.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Aerospace and GE Vernova. The Motley Fool has a disclosure policy.