GE Vernova said on Wednesday global tariffs would increase its costs by about US$100 million to US$200 million in 2026, after the company narrowly missed estimates for second-quarter core profit.
The expected cost increase reflects contract protections and some cost recovery efforts, though the tariff burden underscores the pressure on manufacturers navigating global trade barriers.
GE Vernova shares were down 8 per cent in premarket trading.
The Cambridge, Massachusetts-based company reported adjusted core earnings of US$1.25 billion for the quarter, missing analysts’ estimates of US$1.28 billion, according to LSEG data.
Its wind business continued to lag its faster-growing Power and Electrification segments, as weaker onshore equipment deliveries and higher offshore wind project costs weighed on results.
Revenue from the wind segment fell about 10 per cent to US$2.03 billion, while its core loss widened to about US$275 million.
Power demand drives outlook upgrade
The company raised its 2026 revenue forecast for a second consecutive quarter, helped by strong power demand and rising orders.
It now expects US$45.5 billion-US$46.5 billion, up from US$44.5 billion-US$45.5 billion.
GE Vernova reported US$24.2 billion in orders in the second quarter, compared with US$12.4 billion a year earlier.
U.S. power consumption is forecast to rise in 2026 and 2027 as data center expansion and electrification drive demand, with commercial-sector demand expected to outpace residential this year.
It also raised its annual free cash flow forecast to US$11.5 billion-US$12.5 billion from its previous range of US$6.5 billion-US$7.5 billion.
The electrification unit reported a core profit of US$671 million, up from US$314 million a year ago, while the power unit posted US$1.03 billion, nearly a 31.3 per cent rise.
(Reporting by Sumit Saha in Bengaluru; Editing by Vijay Kishore, Jonathan Ananda and Tasim Zahid)
