GE Vernova Sees 50% Q3 Gas Turbine Order Growth, Holds 62 GW Backlog
Trump’s administration and governors proposed requiring tech giants to fund $15 billion of new power plants through emergency auctions in PJM Interconnection. GE Vernova’s Q3 gas turbine orders rose 50% year-over-year with 20 heavy-duty and 13 HA units, and it has 33 GW of firm orders plus 29 GW reserved.
1. Federal Initiative to Curb Residential Power Costs
On January 16, the Trump Administration and a bipartisan coalition of governors unveiled a proposal targeting PJM Interconnection, the nation’s largest electricity grid, to rein in rising household utility bills. The plan would require major technology companies to finance the construction of new generation capacity through competitive emergency auctions. A White House official indicated that these auctions could underwrite roughly $15 billion in new power plants, offering 15-year contracts that obligate participants to cover plant costs regardless of actual electricity consumption. This policy framework, while not yet legally binding, is intended to stabilize consumer rates by shifting the financial burden of rapid AI-driven demand growth onto hyperscale data-center operators.
2. GE Vernova’s Explosive Order Growth
GE Vernova has benefited directly from surging demand for gas turbines and grid infrastructure. In the third quarter, gas-powered equipment orders rose by 50% year-over-year, while total equipment orders more than doubled. The company reported 20 orders for its heavy-duty gas turbines and 13 orders for its high-efficiency HA series units. Customers have also paid premium deposits to secure manufacturing slots: the firm currently holds 33 gigawatts of confirmed orders and an additional 29 gigawatts reserved under slot-reservation agreements. This backlog has enabled GE Vernova to increase pricing on future deliveries as demand continues to outstrip capacity.
3. Strength in Recurring Services Revenue
Beyond new equipment, GE Vernova’s services division provides a predictable revenue stream through maintenance, modernization, and parts replacement for its global installed base. In the third quarter, service revenues reached $3 billion, compared with $1.74 billion from new power equipment sales. The company reports a total remaining performance obligation of $81.2 billion for its services backlog, with 53% expected to be recognized within five years and 91% over the next 15 years. This long-duration revenue visibility underpins GE Vernova’s earnings outlook and supports its investment thesis amid ongoing infrastructure expansion.