GE Vernova said on Wednesday that its wind power unit might take about $250 million revenue hit this year due to installation delays at an offshore Massachusetts project and that it was expecting a drop in order backlog.
The company said the failure to install 11 turbines at the Vineyard Wind project could lead to a low double-digit drop in revenue and account for about $400 million in losses. The project will have 62 turbines in total.
Despite the outlook for lower backlog, GE Vernova still expects margins in the wind unit to remain stable in 2026.
The wind-related update overshadowed an otherwise strong finish to 2025. The company's shares were marginally up at $696.95 in choppy early trading.
GE Vernova said tariffs that took effect in the second quarter of last year also hit results by roughly $70 million, adding to pressure on the wind business during the quarter.
In contrast, demand remained strong in its power and electrification units, which continue to benefit from rising electricity consumption, driven by data centres, artificial intelligence and broader electrification.
CEO Scott Strazik said on a conference call that the company had signed more than $2 billion of electrification orders directly tied to data centers in 2025 and expected significant backlog growth in both the power and electrification businesses in 2026.
Orders in the latest quarter rose 65% organically to $22.2 billion, with gas power equipment backlog and slot reservation agreements expanding to 83 gigawatts (GW) from 62 GW previously.
Strazik added GE Vernova was entering 2026 with "significant momentum," citing improving margins and strong demand across its power platform.
The company expects 2026 revenue between $44 billion and $45 billion, higher than the average analyst estimate of $41.97 billion, according to data compiled by LSEG data.
(Reuters)