GE Vernova Inc.: Form 10-Q for the period ended Sep 30, 2026

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 nine months ended September 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."

Trench Group. On October 25, 2026, GE Vernova entered into an agreement with Triton Partners to purchase the Trench Group for

approximately 8.0 billion Euros. Trench Group is a global developer, manufacturer, and supplier of specialized high- and medium-voltage

electrical components, including bushings, instrument transformers, and coils, with more than 3,000 employees across eleven

manufacturing sites. We currently expect to fund the acquisition equally between cash and debt. The acquisition is expected to close in late

2027, subject to the completion of customary regulatory approvals. See Part II, Item 5. Other Information for further information.

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. We paid cash consideration of $5.2 billion for this acquisition. 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. During the first quarter of 2026, we successfully completed the installation of all remaining wind turbines at the

Vineyard Wind project and have commissioned substantially all wind turbines with the remainder expected to be completed in early 2027.

In the third quarter of 2026, we reached commercial resolution 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 total estimated cost impact from the global tariffs as outlined is under $100 million in

2026, after taking into consideration contractual protections and mitigating actions, 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 and 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.

2026 3Q FORM 10-Q 26

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.

• Decarbonization – The urgency to combat climate change is fueling technology advancements that improve the economic viability and

efficiency of renewable energy alternatives and facilitate the transition to a more sustainable power sector.

• Evolving generation mix – The power industry is shifting from coal generation to more electricity generated from zero- or low-carbon

energy sources, and an evolving balance of generation sources will be necessary to maintain a reliable, resilient, and affordable

system.

• Energy resilience & security – Threats and challenges from extreme weather events, cyber-attacks, and geopolitical tensions have

increased focus on the strength and resilience of power generation and transmission and reinforced the need for a diversified mix of

energy sources.

• Grid modernization and investment – Increased demand and the integration of advanced generation and storage solutions drive the

need to update aging infrastructure with new grid integration and automation solutions.

• Regulatory and policy changes – Government policies and regulations, such as carbon pricing, renewable energy mandates, and

subsidies for renewable energy technologies, can significantly impact the power generation landscape. Staying ahead of regulatory

changes and adapting to new compliance requirements is crucial for maintaining a competitive advantage.

• Financial and investment dynamics – Access to capital and investment trends in the energy sector can influence the development and

deployment of new power generation projects. Understanding market dynamics and securing funding are key to progressing strategic

initiatives.

RESULTS OF OPERATIONS

Summary of Results. RPO was $196.7 billion and $135.3 billion as of September 30, 2026 and 2025, respectively. For the three months

ended September 30, 2026, total revenues were $12.6 billion, an increase of $2.7 billion for the quarter. Net income (loss) was $1.3 billion,

an increase of $0.8 billion in net income for the quarter, and net income (loss) margin was 10.2%. Diluted earnings (loss) per share was

$4.81 for the three months ended September 30, 2026, an increase in diluted earnings per share of $3.17 for the quarter. Cash flows from

(used for) operating activities were $16.7 billion and $2.5 billion for the nine months ended September 30, 2026 and 2025, respectively.

For the three months ended September 30, 2026, Adjusted EBITDA* was $1.9 billion, an increase of $1.1 billion. Free cash flow* was $15.3

billion and $1.9 billion for the nine months ended September 30, 2026 and 2025, respectively.

RPO, a measure of backlog, includes unfilled firm and unconditional customer orders for equipment and services, excluding any purchase

order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. Services RPO includes the

estimated life of contract sales related to long-term service agreements which remain unsatisfied at the end of the reporting period,

excluding contracts that are not yet active. Services RPO also includes the estimated amount of unsatisfied performance obligations for

time and material agreements, material services agreements, spare parts under purchase order, multi-year maintenance programs, and

other services agreements, excluding any order that provides the customer with the ability to cancel or terminate without incurring a

substantive penalty. See Note 9 in the Notes to the consolidated financial statements for further information.

As of September 30, 2026, RPO increased $46.5 billion (31%) from December 31, 2025, primarily at Power, due to increases at Gas

Power equipment and services, and increases at Nuclear Power services, partially offset by decreases at Hydro Power equipment; and at

Electrification, due to the acquisition of Prolec GE of $5.0 billion and demand for switchgear and transformers at Power Transmission, and

demand for alternating current substation solutions, partially offset by decreases in high-voltage direct current solutions at Grid Systems

Integration; partially offset at Wind, due to a decrease at Offshore Wind as we continue to execute on our contracts and at Onshore Wind

due to a decrease in orders primarily in North America. RPO increased $61.5 billion (45%) from September 30, 2025, primarily at Power,

due to increases at Gas Power equipment and services, and increases at Nuclear Power services and equipment; and at Electrification,

due to the acquisition of Prolec GE of $5.0 billion and demand for switchgear and transformers at Power Transmission, demand for

alternating current substation solutions, flexible alternating current transmission systems, and high-voltage direct current solutions at Grid

Systems Integration, and synchronous condensers at Power Conversion & Storage; partially offset at Wind, due to a decrease at Offshore

Wind as we continue to execute on our contracts and at Onshore Wind due to a decrease in orders primarily in North America.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 27

For the three months ended September 30, 2026, total revenues increased $2.7 billion (27%). Equipment revenues increased at

Electrification, primarily due to the acquisition of Prolec GE and increased volume in switchgear and transformers at Power Transmission,

and increased volume in alternating current substation solutions and high-voltage direct current solutions at Grid Systems Integration; and

at Power, due to increases at Gas Power from higher Aeroderivative and Heavy-Duty Gas Turbine deliveries and favorable pricing; partially

offset at Wind, primarily at Onshore Wind due to lower deliveries, partially offset by increases at Offshore Wind due to higher deliveries and

lower project updates. Services revenues increased at Wind, due to an increase at Onshore Wind from higher transactional volume; and at

Power; partially offset at Electrification.

Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*

increased $1.8 billion (18%), organic equipment revenues* increased $1.5 billion (26%) and organic services revenues* increased $0.2

billion (6%). Organic revenues* increased at Power, Electrification, and Wind.

For the nine months ended September 30, 2026, total revenues increased $6.0 billion (22%). Equipment revenues increased at

Electrification, primarily due to the acquisition of Prolec GE and increased volume in switchgear and transformers at Power Transmission,

increased volume in alternating current substation solutions and high-voltage direct current solutions at Grid Systems Integration, and

increased volume in power stability at Power Conversion & Storage; and at Power, due to increases at Gas Power from higher

Aeroderivative and Heavy-Duty Gas Turbine deliveries and favorable pricing; partially offset at Wind, primarily at Onshore Wind due to

lower deliveries, partially offset by increases at Offshore Wind due to higher deliveries and lower project updates. Services revenues

increased at Wind, due to increases at Onshore Wind from higher transactional volume; and at Power, due to increases at Nuclear Power

from higher volume and favorable pricing; partially offset at Electrification.

Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*

increased $3.4 billion (13%), organic equipment revenues* increased $2.6 billion (18%) and organic services revenues* increased $0.8

billion (7%). Organic revenues* increased at Power and Electrification, partially offset at Wind.

For the three months ended September 30, 2026, operating income (loss) was $1.4 billion, a $1.0 billion increase, primarily due to: an

increase in segment results at Power of $0.6 billion, primarily at Gas Power due to favorable pricing and higher volume, partially offset by

the impact of inflation; at Electrification of $0.4 billion, primarily at Power Transmission due to the acquisition of Prolec GE, higher volume,

productivity, and favorable price, and at Grid Systems Integration due to higher volume and productivity; and at Wind of $0.1 billion,

primarily at Offshore Wind due to lower project costs and at Onshore Wind due to the impact of tariff recoveries and Onshore Wind services

due to higher transactional volume, partially offset by Onshore Wind equipment due to lower volume; partially offset by an increase in

depreciation and amortization expense across all segments of $0.2 billion due to the acquisition of Prolec GE and additional capital

expenditures.

Net income (loss) and Net income (loss) margin were $1.3 billion and 10.2%, respectively, for the three months ended September 30, 2026,

an increase of $0.8 billion and 5.7%, respectively, for the quarter, primarily due to an increase in operating income (loss) of $1.0 billion,

partially offset by an increase in provision for income taxes of $0.2 billion.

Adjusted EBITDA* and Adjusted EBITDA margin* were $1.9 billion and 15.4%, respectively, for the three months ended September 30,

2026, an increase of $1.1 billion and 7.3%, respectively, primarily driven by increases in segment results at Power, Electrification, and

Wind.

For the nine months ended September 30, 2026, operating income (loss) was $2.2 billion, a $1.4 billion increase, primarily due to: an

increase in segment results at Power of $1.2 billion, primarily at Gas Power due to favorable pricing, higher volume, and increased

productivity, partially offset by the impact of inflation and additional expenses to support investments at Gas Power and Nuclear Power; and

at Electrification of $1.0 billion, primarily at Power Transmission due to the acquisition of Prolec GE, higher volume, productivity, and

favorable price, and at Grid Systems Integration due to higher volume; partially offset by a decrease at Wind of $0.2 billion, primarily at

Onshore Wind due to lower equipment deliveries, partially offset by lower costs and higher transactional volume at Onshore Wind services,

and the impact of tariff recoveries at Onshore Wind; and an increase in depreciation and amortization expense across all segments of $0.6

billion due to the acquisition of Prolec GE and additional capital expenditures.

Net income (loss) and Net income (loss) margin were $6.7 billion and 20.2%, respectively, for the nine months ended September 30, 2026,

an increase of $5.5 billion and 15.7%, respectively, for the year, primarily due to an increase in other income (expense) - net of $4.5 billion

driven by a $4.0 billion pre-tax gain related to the acquisition of Prolec GE and a $0.4 billion pre-tax gain related to the sale of our Proficy

manufacturing software business (Proficy), and an increase in operating income (loss) of $1.4 billion, partially offset by an increase in

provision for income taxes of $0.6 billion.

Adjusted EBITDA* and Adjusted EBITDA margin* were $4.1 billion and 12.4%, respectively, for the nine months ended September 30,

2026, an increase of $2.1 billion and 4.9%, respectively, primarily driven by increases in segment results at Power and Electrification,

partially offset at Wind.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 28

SEGMENT OPERATIONS. Segment revenues include sales of equipment and services by our segments. Segment EBITDA is

determined based on performance measures used by our Chief Operating Decision Maker, who is our Chief Executive Officer (CEO), to

assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude certain non-cash

charges, such as depreciation and amortization, impairments and other matters, major restructuring programs, and certain gains and

losses from purchases and sales of business interests. Certain corporate costs, including those related to shared services, employee

benefits, and information technology (IT), are allocated to our segments based on usage or their relative net cost of operations.

(a) Includes our Financial Services business and other general corporate expenses, including costs required to operate as a stand-alone

public company.

(b) See "—Non-GAAP Financial Measures" for additional information related to Adjusted EBITDA*. Adjusted EBITDA* includes interest and

other financial income (charges) and the benefit for income taxes of Financial Services as this business is managed on an after-tax

basis due to the nature of its investments.

POWER

RPO as of September 30, 2026 increased $36.3 billion (38%) from December 31, 2025, primarily at Gas Power due to increases in

equipment and services, and increases at Nuclear Power services, partially offset by decreases at Hydro Power equipment. RPO increased

$46.6 billion (55%) from September 30, 2025, primarily at Gas Power due to increases in equipment and services, and increases at

Nuclear Power services and equipment.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 29

For the three months ended September 30, 2026, segment revenues were up $1.2 billion (25%) and segment EBITDA was up $0.6

billion (99%).

Segment revenues increased $1.2 billion (25%) organically*, primarily at Gas Power equipment due to higher Aeroderivative and Heavy-

Duty Gas Turbine deliveries and favorable pricing.

Segment EBITDA increased $0.7 billion organically*, primarily at Gas Power due to favorable pricing and higher volume, partially offset by

the impact of inflation.

For the nine months ended September 30, 2026, segment revenues were up $2.4 billion (17%) and segment EBITDA was up $1.2

billion (61%).

Segment revenues increased $2.3 billion (17%) organically*, primarily at Gas Power equipment due to higher Aeroderivative and Heavy-

Duty Gas Turbine deliveries and favorable pricing, and increases at Nuclear Power services due to higher volume and favorable pricing.

Segment EBITDA increased $1.2 billion (65%) organically*, primarily at Gas Power due to favorable pricing, higher volume, and increased

productivity, partially offset by the impact of inflation and additional expenses to support investments at Gas Power and Nuclear Power.

ELECTRIFICATION

RPO as of September 30, 2026 increased $11.9 billion (35%) from December 31, 2025, primarily due to the acquisition of Prolec GE of

$5.0 billion and demand for switchgear and transformers at Power Transmission, and demand for alternating current substation solutions,

partially offset by decreases in high-voltage direct current solutions at Grid Systems Integration. RPO increased $16.4 billion (55%) from

September 30, 2025, primarily due to the acquisition of Prolec GE of $5.0 billion and demand for switchgear and transformers at Power

Transmission, demand for alternating current substation solutions, flexible alternating current transmission systems, and high-voltage direct

current solutions at Grid Systems Integration, and synchronous condensers at Power Conversion & Storage.

For the three months ended September 30, 2026, segment revenues were up $1.3 billion (51%) and segment EBITDA was up $0.4

billion (91%).

Segment revenues increased $0.4 billion (16%) organically*, primarily at Grid Systems Integration due to increased volume in alternating

current substation solutions and high-voltage direct current solutions, and at Power Transmission due to increased volume in switchgear

and transformers.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 30

Segment EBITDA increased $0.2 billion (57%) organically*, primarily at Grid Systems Integration due to higher volume and productivity,

and at Power Transmission due to higher volume, productivity, and favorable price.

For the nine months ended September 30, 2026, segment revenues were up $3.9 billion (59%) and segment EBITDA was up $1.0

billion.

Segment revenues increased $1.5 billion (24%) organically*, primarily at Grid Systems Integration due to increased volume in alternating

current substation solutions and high-voltage direct current solutions, at Power Transmission due to increased volume in switchgear and

transformers, and at Power Conversion & Storage due to increased volume in power stability.

Segment EBITDA increased $0.6 billion (86%) organically*, primarily at Power Transmission due to higher volume, productivity, and

favorable price and at Grid Systems Integration due to higher volume.

WIND

RPO as of September 30, 2026 decreased $1.7 billion (8%) from December 31, 2025 and decreased $1.6 billion (7%) from September 30,

2025, primarily due to a decrease at Offshore Wind as we continue to execute on our contracts and at Onshore Wind due to a decrease in

orders primarily in North America.

For the three months ended September 30, 2026, segment revenues were up $0.1 billion (4%) and segment EBITDA was up $0.1

billion.

Segment revenues increased $0.1 billion (3%) organically*, primarily at Onshore Wind services due to increased transactional volume and

at Offshore Wind due to higher deliveries and lower project updates, partially offset by Onshore Wind equipment due to lower deliveries.

Segment EBITDA increased $0.1 billion organically*, primarily at Offshore Wind due to lower project costs, and at Onshore Wind due to the

impact of tariff recoveries and Onshore Wind services due to higher transactional volume, partially offset by Onshore Wind equipment due

to lower volume in North America.

For the nine months ended September 30, 2026, segment revenues were down $0.5 billion (8%) and segment EBITDA was down

$0.2 billion (57%).

Segment revenues decreased $0.6 billion (9%) organically*, primarily at Onshore Wind equipment due to lower deliveries, partially offset by

increases at Onshore Wind services due to increased transactional volume and Offshore Wind due to higher deliveries and lower project

updates.

Segment EBITDA decreased $0.2 billion (67%) organically*, primarily at Onshore Wind due to lower equipment deliveries in North America,

partially offset by lower costs and higher transactional volume at Onshore Wind services, and the impact of tariff recoveries at Onshore

Wind.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 31

OTHER INFORMATION

Gross Profit and Gross Margin. Gross profit was $3.1 billion and $1.9 billion for the three months ended and $7.2 billion and $5.2 billion

for the nine months ended September 30, 2026 and 2025, respectively. Gross margin was 24.6% and 19.0% for the three months ended

and 21.9% and 19.2% for the nine months ended September 30, 2026 and 2025, respectively. The increase in gross profit for the quarter

was due to an increase at Power due to favorable pricing and higher volume at Gas Power, partially offset by the impact of inflation; at

Electrification due to the acquisition of Prolec GE and higher volume, productivity, and favorable price at Power Transmission and Grid

Systems Integration; and at Wind primarily at Offshore Wind due to lower project costs and at Onshore Wind due to the impact of tariff

recoveries and Onshore Wind services due to higher transactional volume, partially offset at Onshore Wind equipment due to lower volume

in North America. The increase in gross profit for the year was due to increases at Power and Electrification due to the reasons described

above, partially offset at Wind due to lower equipment deliveries at Onshore Wind, partially offset by lower costs and higher transactional

volume at Onshore Wind services, and the impact of tariff recoveries at Onshore Wind.

Selling, General, and Administrative. Selling, general, and administrative costs were $1.4 billion and $1.2 billion for the three months

ended and $4.0 billion and $3.6 billion for the nine months ended and comprised 10.7% and 12.3% of revenues for the three months ended

and 12.2% and 13.3% of revenues for the nine months ended September 30, 2026 and 2025, respectively. Selling, general, and

administrative costs increased $0.1 billion for the quarter and $0.4 billion for the year, primarily due to incremental costs associated with the

acquisition of Prolec GE and labor inflation, partially offset by cost reduction activities.

Restructuring Charges and Separation Costs. We continuously evaluate our cost structure and are implementing several restructuring

and process transformation actions considered necessary to simplify our organizational structure. In connection with the separation from

General Electric Company (GE), we incurred and will continue to incur certain one-time separation costs. See Note 23 in the Notes to the

consolidated financial statements for further information.

Interest and Other Financial Income (Charges) – Net. Interest and other financial income (charges) – net was $0.1 billion and less than

$0.1 billion in income for the three months ended and $0.2 billion and $0.1 billion in income for the nine months ended September 30, 2026

and 2025, respectively. The increase in income for the quarter and for the year was primarily due to a higher average balance of invested

funds, partially offset by higher interest expense on borrowings. The primary components of net interest and other financial income

(charges) are fees on cash management activities and credit facilities, interest on borrowings, and interest earned on cash balances and

short-term investments.

Income Taxes. Our effective tax rate was 27.7% for the three months ended September 30, 2026. The effective tax rate was higher than

the U.S. statutory rate of 21% primarily due to losses providing no tax benefit in certain jurisdictions and U.S. tax effects of income earned

in foreign jurisdictions, partially offset by an income tax benefit from tax law changes.

Our effective tax rate was 14.4% for the nine months ended September 30, 2026. The effective tax rate was lower than the U.S. statutory

rate of 21% primarily due to a nontaxable gain on the acquisition of Prolec GE, income tax benefits from stock-based compensation and tax

law changes, partially offset by losses providing no tax benefit in certain jurisdictions and U.S. tax effects of income earned in foreign

jurisdictions.

Our effective tax rate was 39.2% and 29.8% for the three and nine months ended September 30, 2025, respectively. The effective tax rate

was higher than the U.S. statutory rate of 21% in both periods primarily due to losses providing no tax benefit in certain jurisdictions and the

finalization of the Company's pre-separation from GE tax attributes that increased the Company's current provision for income taxes,

partially offset by an income tax benefit from stock-based compensation.

CAPITAL RESOURCES AND LIQUIDITY. As of September 30, 2026, our Cash, cash equivalents, and restricted cash was $16.8

billion, $0.4 billion of which was restricted use cash. In addition, we have access to a $3.0 billion committed revolving credit facility

(Revolving Credit Facility). See “—Capital Resources and Liquidity—Debt” for further information. We believe our unrestricted cash, cash

equivalents, future cash flows generated from operations, and committed credit facility will be responsive to the needs of our current and

planned operations for at least the next 12 months.

We repurchased 1.7 million shares and 6.0 million shares for $1.6 billion and $5.3 billion during the three months and nine months ended

September 30, 2026, respectively, under our share repurchase program. On October 28, 2026, we announced that our Board of Directors

increased our share repurchase authorization to $20.0 billion of common stock. Cumulatively, as of September 30, 2026, we have

repurchased $8.6 billion of common stock over the life of the program. Although we intend to fund priorities that profitably grow the

Company and return capital to stockholders through dividends and share repurchases as part of our capital allocation strategy, we are not

obligated to pay cash dividends or to repurchase a specified or any number or dollar value of shares under our share repurchase program.

The declaration of any future dividends is at the discretion of our Board of Directors and will be based on our earnings, financial condition,

cash requirements, prospects, and other factors. The amount and timing of any future share repurchases under our share repurchase

program will be based on the trading price and volume of our shares of common stock and other market factors as well as our earnings,

financial condition, cash requirements, prospects, alternative uses for our cash, and other factors.

Consolidated Statement of Cash Flows. The most significant source of cash flows from operations is customer-related activities, the

largest of which is collecting cash resulting from equipment or services sales. The most significant operating uses of cash are to pay our

suppliers, employees, and tax authorities. We measure ourselves on a free cash flow* basis. We believe that free cash flow* provides

management and investors with an important measure of our ability to generate cash subsequent to fulfilling our capital obligations;

however, free cash flow* does not delineate funds available for discretionary uses as it does not deduct the payments required for certain

investing and financing activities.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 32

We typically invest in property, plant, and equipment (PP&E) over multiple periods to support new product introductions and increases in

manufacturing capacity and to perform ongoing maintenance of our manufacturing operations. We believe that while PP&E expenditures

will fluctuate period to period, we will need to maintain a material level of net PP&E spend to maintain ongoing operations and growth of the

business.

Cash from operating activities was $16.7 billion and $2.5 billion for the nine months ended September 30, 2026 and 2025, respectively.

Cash from operating activities increased by $14.2 billion in 2026 compared to 2025, primarily driven by higher customer payment activity

and improved profitability. The increase was primarily driven by: an increase from contract liabilities and current deferred income of $17.1

billion, primarily due to higher down payments on orders and slot reservation agreements at Power, higher down payments at

Electrification, and lower revenue recognition at Wind; higher net income (after adjusting for depreciation of PP&E, amortization of

intangible assets, (gains) losses on purchases and sales of business interests, and provision (benefit) for income taxes) of $2.3 billion; an

increase from accounts payable of $1.0 billion, driven by growth and a higher impact related to decreases in prepayments across all

segments; partially offset by higher income taxes paid of $(2.2) billion; a decrease from current receivables of $(2.2) billion, primarily due to

higher net billings across all segments; a decrease from inventories of $(1.0) billion, primarily due to higher build at Power and Wind; and

voluntary payments of $(0.9) billion related to pension and retiree benefit plans in 2026.

Cash from operating activities of $16.7 billion for the nine months ended September 30, 2026 included a $17.0 billion inflow from changes

in working capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income

of $19.5 billion, driven by down payments on orders and slot reservation agreements at Power, and down payments at Electrification; and

accounts payable and equipment project payables of $1.5 billion, due to purchases of materials outpacing disbursements, including a

decrease in prepayments, at Electrification and Power; partially offset by inventories of $(2.1) billion, due to higher volume to support

fulfillment and future deliveries, primarily at Power and Wind; and current receivables of $(1.7) billion, driven by net billings across all

segments.

Cash from operating activities of $2.5 billion for the nine months ended September 30, 2025 included a $1.8 billion inflow from changes in

working capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of

$2.4 billion, driven by down payments on orders and slot reservation agreements at Power, and down payments and collections at

Electrification, partially offset by higher net revenue recognition at Wind; accounts payable and equipment project payables of $0.6 billion,

driven by reductions in prepayments and purchases of materials outpacing disbursements primarily at Electrification; current receivables of

$0.6 billion, driven by lower billings and higher utilization of supplier advances at Wind, and collections outpacing billings at Power,

including a decrease in past dues; partially offset by inventories of $(1.0) billion, primarily due to volume to support fulfillment and deliveries

expected in the fourth quarter of 2025 and in 2026 primarily at Gas Power and Onshore Wind; and current contract assets of $(0.7) billion,

driven by revenue recognition exceeding billings on our equipment and other service agreements.

Cash from (used for) investing activities was $(4.7) billion and $(0.4) billion for the nine months ended September 30, 2026 and 2025,

respectively. Cash used for investing activities increased by $4.3 billion in 2026 compared to 2025 primarily driven by: net cash paid for the

acquisition of the remaining 50% stake of Prolec GE of $4.8 billion (net of cash acquired); and higher additions to PP&E and internal-use

software of $0.8 billion; partially offset by proceeds from sales of our remaining interest in China XD Electric Co., Ltd. in 2026 of $0.7 billion,

which is included in All other investing activities; proceeds (net of cash transferred) from the sale of our Proficy business of $0.6 billion; and

higher dispositions of PP&E of $0.2 billion. Cash used for additions to PP&E and internal-use software, which is a component of free cash

flow*, was $1.4 billion and $0.6 billion for the nine months ended September 30, 2026 and 2025, respectively.

Cash from (used for) financing activities was $(4.1) billion and $(2.6) billion for the nine months ended September 30, 2026 and 2025,

respectively. Cash used for financing activities increased by $1.4 billion in 2026 compared to 2025 primarily driven by: higher cash

settlements for share repurchases of $3.1 billion; the repayment of debt acquired in the Prolec GE transaction of $0.4 billion and higher

withholding tax payments on equity stock awards of $0.3 billion, which are both included in All other financing activities; and higher

dividends paid of $0.2 billion; partially offset by net cash from newly issued long-term debt of $2.6 billion in 2026.

Material Cash Requirements. In the normal course of business, we enter into contracts and commitments that oblige us to make

payments in the future. See Notes 7 and 22 in the Notes to the consolidated financial statements for further information regarding our

obligations under lease and guarantee arrangements as well as our investment commitments. See Note 13 in the Notes to the consolidated

financial statements for further information regarding material cash requirements related to our pension obligations.

Debt. Total debt, excluding finance leases, was $2.6 billion and less than $0.1 billion as of September 30, 2026 and December 31, 2025,

respectively, an increase of $2.5 billion, primarily due to long-term debt issued on February 4, 2026. We have a $3.0 billion Revolving Credit

Facility to fund near-term intra-quarter working capital needs as they arise. In addition, we have a $3.0 billion committed trade finance

facility (Trade Finance Facility, and together with the Revolving Credit Facility, the Credit Facilities). The Trade Finance Facility has not

been and is not expected to be utilized, and does not contribute to direct liquidity. We believe that our financing arrangements, future cash

from operations, and access to capital markets will provide adequate resources to fund our future cash flow needs. For further information

about the Credit Facilities, refer to our Current Report on Form 8-K, filed with the SEC on April 2, 2024, and see Note 14 in the Notes to the

consolidated financial statements.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 33

Credit Ratings and Conditions. Interest and fees payable by us under the Revolving Credit Facility are determined in part by our credit

ratings, and our credit ratings and market conditions will influence any future debt financing and may impact our commercial activities and

arrangements. S&P Global Ratings (S&P) and Fitch Ratings (Fitch) have issued credit ratings for the Company. On August 12, 2026, Fitch

upgraded GE Vernova Inc.'s long-term credit rating to A- from BBB+ and issued a Stable outlook. Our credit ratings as of the date of this

filing are set forth in the following table.

We are disclosing our credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds

and access to credit. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each

rating should be evaluated independently of any other rating. See Item 1A. “Risk Factors—Risks Related to our Customers and Industry

Dynamics” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for a description of some potential

consequences for our credit ratings.

If we are unable to maintain investment grade ratings, we could face significant challenges in being awarded new contracts, substantially

increasing financing and hedging costs, and refinancing risks as well as substantially decreasing the availability of credit. As of September

30, 2026, we estimated an insignificant liquidity impact of a ratings downgrade below investment grade.

Parent Company Credit Support. Prior to the separation from GE, to support GE Vernova businesses in selling products and services

globally, GE often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments

supporting the performance of its subsidiary legal entities transacting directly with customers, in addition to providing similar credit support

for noncustomer related activities of GE Vernova (collectively, the GE credit support). We are working to seek novation or assignment of GE

credit support, the majority of which relates to parent company guarantees, associated with GE Vernova legal entities from GE to GE

Vernova. For GE credit support that remained outstanding at the separation from GE, GE Vernova is obligated to use reasonable best

efforts to terminate or replace, and obtain a full release of GE’s obligations and liabilities under, all such credit support. GE Vernova pays

quarterly fees to GE which are determined by amounts associated with GE credit support. GE Vernova is subject to other contractual

restrictions and requirements while GE continues to be obligated under such credit support on behalf of GE Vernova. In addition, while GE

will remain obligated under the contract or instrument, GE Vernova will be obligated to indemnify GE for credit support related payments

that GE is required to make and possible related costs.

As of September 30, 2026, we estimated GE Vernova RPO and other obligations that relate to GE credit support to be approximately $5.4

billion, an over 85% reduction since the separation. We expect approximately $4 billion of the RPO related to GE credit support obligations

to contractually mature by December 31, 2029. The underlying obligations are predominantly customer contracts that GE Vernova performs

in the normal course of its business. We have no known instances historically where payments or performance from GE were required

under parent company guarantees relating to GE Vernova customer contracts.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS. In November 2024, the Financial Accounting Standards Board (FASB)

issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure about specific

types of expenses included in the expense captions presented on the face of the income statement as well as disclosure about selling

expenses. The ASU is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December

15, 2027, with early adoption permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our

consolidated financial statements.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted improvements to the Accounting for Internal-Use Software. The ASU updates the accounting for internal-use software by

eliminating the concept of development stages. Under this updated guidance, software costs are capitalized once management has

authorized and committed funding to the project, and it is probable the project will be completed and the software used as intended. The

ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual periods. We are currently

evaluating the impact that this guidance will have on our consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-10, Accounting for Government Grants Received by Business Entities. The new

standard establishes guidance on the recognition, measurement, and presentation of government grants received by business entities. The

ASU is effective for fiscal years beginning after December 15, 2028. We are currently evaluating the impact that this guidance will have on

our consolidated financial statements.

CRITICAL ACCOUNTING ESTIMATES. To prepare our consolidated financial statements in accordance with GAAP, management

makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, including our contingent liabilities, as

of the date of our financial statements and the reported amounts of our revenues and expenses during the reporting periods. Our actual

results may differ from these estimates. We consider estimates to be critical (i) if we are required to make assumptions about material

matters that are uncertain at the time of estimation or (ii) if materially different estimates could have been made or it is reasonably likely that

the accounting estimate will change from period to period. See Item 7. "Management’s Discussion and Analysis of Financial Condition and

Results of Operations—Critical Accounting Estimates" and Note 2 in the Notes to our audited consolidated and combined financial

statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for additional discussion of accounting policies

and critical accounting estimates.

Except as described below, there have been no material changes to our critical accounting estimates as compared to the critical accounting

estimates disclosed in our audited consolidated and combined financial statements and notes thereto for the fiscal year ended December

31, 2025 in our Annual Report on Form 10-K.

2026 3Q FORM 10-Q 34

Business Combinations. The results of a business acquired in a business combination are included in our consolidated financial

statements as of the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at

their estimated fair values on the acquisition date, which may be considered preliminary and subject to adjustment during the measurement

period, which is up to one year from the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities

assumed is recognized as goodwill.

We perform valuations of assets acquired and liabilities assumed and allocate the purchase price to the respective assets and liabilities.

Determining the fair value of assets acquired and liabilities assumed requires significant judgment and estimates, including the selection of

valuation methodologies, estimates of future revenue, costs, and cash flows, discount rates, royalty rates, and selection of comparable

companies. We engage third-party valuation specialists to assist in concluding on fair value measurements in connection with determining

fair values of assets acquired and liabilities assumed in a business combination. The resulting fair values and useful lives assigned to

acquisition-related intangible assets impact the amount and timing of future amortization expense.

These estimates are inherently uncertain and unpredictable, and if different estimates were used the purchase price for the acquisition

could be allocated to the acquired assets and liabilities differently from the allocation that we have made. In addition, unanticipated events

and circumstances may occur which may affect the accuracy or validity of such estimates, and if such events occur, we may be required to

record a charge against the value ascribed to an acquired asset, an increase in the amounts recorded for assumed liabilities, or an

impairment of some or all of the goodwill. See Note 8 in the Notes to the consolidated financial statements for further information.

NON-GAAP FINANCIAL MEASURES. The non-GAAP financial measures presented in this Quarterly Report on Form 10-Q are

supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition and operating

results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding

GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are

unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide

investors greater transparency to the information used by management for its operational decision-making and allow investors to see our

results “through the eyes of management.” We further believe that providing this information assists our investors in understanding our

operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction

with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can

be used by management as one basis for financial, operational, and planning decisions. Finally, these measures are often used by analysts

and other interested parties to evaluate companies in our industry.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by

other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from

company to company. In order to compensate for these and the other limitations discussed below, management does not consider these

measures in isolation from or as alternatives to the comparable financial measures determined in accordance with GAAP. Readers should

review the reconciliations below, and above with respect to free cash flow, and should not rely on any single financial measure to evaluate

our business. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP

financial measures follow.

We believe the organic measures presented below provide management and investors with a more complete understanding of underlying

operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions, and foreign currency,

which includes translational and transactional impacts, as these activities can obscure underlying trends.

ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)

(a) Includes intersegment sales of $41 million and $118 million for the three months ended September 30, 2026 and 2025, respectively.

See Note 24 in the Notes to the consolidated financial statements for further information.

2026 3Q FORM 10-Q 35

ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)

(a) Includes intersegment sales of $116 million and $324 million for the nine months ended September 30, 2026 and 2025, respectively.

See Note 24 in the Notes to the consolidated financial statements for further information.

We believe that Adjusted EBITDA* and Adjusted EBITDA margin*, which are adjusted to exclude the effects of unique and/or non-cash

items that are not closely associated with ongoing operations, provide management and investors with meaningful measures of our

performance that increase the period-to-period comparability by highlighting the results from ongoing operations and the underlying

profitability factors. We believe Adjusted organic EBITDA* and Adjusted organic EBITDA margin* provide management and investors with,

when considered with Adjusted EBITDA* and Adjusted EBITDA margin*, a more complete understanding of underlying operating results

and trends of established, ongoing operations by further excluding the effect of acquisitions, dispositions, and foreign currency, which

includes translational and transactional impacts, as these activities can obscure underlying trends. We believe these measures provide

additional insight into how our businesses are performing on a normalized basis. However, Adjusted EBITDA*, Adjusted organic EBITDA*,

Adjusted EBITDA margin*, and Adjusted organic EBITDA margin* should not be construed as inferring that our future results will be

unaffected by the items for which the measures adjust.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 36

See "—Capital Resources and Liquidity” for discussion of free cash flow*.

*Non-GAAP Financial Measure

2026 3Q FORM 10-Q 37

primarily from fluctuations of foreign currency exchange rates, interest rates, and commodity prices. These exposures are managed and

mitigated with the use of financial instruments, including derivatives contracts. We apply policies to manage these risks, including

prohibitions on speculative activities. The effects of foreign currency fluctuations on earnings were less than $(0.1) billion for both the three

months ended September 30, 2026 and 2025, and $(0.1) billion and less than $0.1 billion for the nine months ended September 30, 2026

and 2025, respectively. See Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for

the fiscal year ended December 31, 2025 for more information about foreign exchange risk, interest rate risk, and commodity risk.

Evaluation of Disclosure Controls and Procedures. Under the supervision and with the participation of the Company's management,

including the Chief Executive Officer and Chief Financial Officer, the Company evaluated its disclosure controls and procedures as defined

in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer

concluded that the Company's disclosure controls and procedures were effective as of September 30, 2026, and that the information

required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized,

and reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated

to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding

required disclosure.

Changes in Internal Control Over Financial Reporting. The Company has completed its exit from all transition service agreements with

General Electric Company as of September 30, 2026, including those related to information technology systems that impact financial

reporting. Consequently, responsibility for the execution of all related internal controls has transferred to the Company.

On February 2, 2026, the Company completed the acquisition of the remaining 50% stake of Prolec GE. See Note 8 in the Notes to the

consolidated financial statements for further information. The Company is in the process of analyzing and evaluating the internal control

environment as it relates to the integration of Prolec GE, which may result in additions or changes to our internal control over financial

reporting. The Company will exclude Prolec GE’s operations from the scope of our annual assessment of the effectiveness of internal

control over financial reporting for the year ending December 31, 2026 in accordance with Securities and Exchange Commission guidance.

Such guidance permits management to omit an assessment of an acquired business’ internal control over financial reporting from

management’s assessment of internal control over financial reporting for a period not to exceed one year from the date of acquisition.

Other than those discussed in the preceding sentences, no change in the Company’s internal control over financial reporting occurred

during the quarter ended September 30, 2026, that materially affected, or is reasonably likely to materially affect, the Company's internal

control over financial reporting.

2026 3Q FORM 10-Q 38

operations, cash flows, financial condition, and/or future prospects, including those identified in Item 1A. "Risk Factors" in our Annual

Report on Form 10-K for the fiscal year ended December 31, 2025.