Shares declined 4.4% as investors reacted negatively to a cautiously framed outlook and signs of margin pressure, despite strong backlog growth and solid order intake. The market appears concerned the margin improvements may not sustain or accelerate as expected.
- Equipment orders more than doubled and service orders grew 15% sequentially, driving backlog up $13 billion to $176 billion.
- Gas Power backlog grew from 44 to 53 gigawatts, with total gigawatts under contract rising from 100 to 116, fueled by strong order flow across diverse customers.
- Pricing improved, with first half 2026 equipment orders priced over 20% above 4Q 2025 levels, reflecting conversion of SRAs to firm orders and higher mix of aero-derivatives.
- Margins expanded 360 basis points year-over-year to 10.5% in the first half, supported by volume, pricing, and productivity gains, though equipment revenue growth outpaced services, which may pressure margins.
- Free cash flow reached approximately $10 billion year-to-date, more than 2.5x 2025 levels, supporting disciplined capital allocation including $4 billion returned to shareholders.
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