The Zhitong Finance App learned that Oriental Securities released a research report saying that demand for gas engines in North America continues to be high, that overseas GE gas engine business orders, performance, and profitability are gradually being fulfilled and the boom continues. Domestic high-quality gas engine companies such as Jerry have clearly benefited from North American gas engine spillover demand. The bank is optimistic that Chinese gas engine manufacturers will go overseas to drive companies to achieve a sharp rise in profit.
Orient Securities's main views are as follows:
The expansion of AI computing power spawned an electricity gap, and GE performed well in the second quarter
As global data center construction accelerates, computing power expansion is driving a surge in electricity demand, and demand for power grids, electrification, and gas power generation equipment is growing at an accelerated pace. Against this backdrop, GeverNova's second-quarter results rose sharply, with revenue of US$11.1 billion in the second quarter of 2026, an increase of 22% over the previous year. The order volume was US$24.2 billion, a natural increase of 88%, mainly driven by strong growth in electricity and electrification.
Electricity business orders surged, and gas turbines ushered in AI dividends
GeverNova's electricity business orders in the second quarter reached 16.7 billion US dollars, surging 134% year on year. The business revenue increased 14% year over year to 5.5 billion US dollars, and the EBITDA profit margin increased 240 basis points year on year (organic increase of 320 basis points). The scale of gas power equipment orders and capacity lock-up agreements continues to expand, increasing from 100 gigawatts to 116 gigawatts, and is expected to reach at least 125 gigawatts by the end of 2026. According to GeverNova's forecast, the annual production capacity of gas turbines will reach 20 gigawatts in the third quarter of 2026, 24 gigawatts in 2028, and 30 gigawatts in 2030. This shows management's firm judgment on the intensity of medium- to long-term demand.
The gas power generation industry chain has entered a new boom cycle, and I am optimistic that Chinese gas engine manufacturers will go overseas
As the scale of global data centers expands, data center electricity consumption continues to rise, and power supply capacity is becoming the core bottleneck limiting the expansion of computing power. With comparative advantages such as stable output and the ability to adjust the peak at any time, gas power generation is more suited to the urgent needs of large data centers for immediate and controllable electricity. Recently, Jerry Co., Ltd. signed a US$1,465 billion gas turbine generator supply contract with a global cloud service provider. In the nine months from November 2025 to now, it has received a total of 11.681 billion yuan in related orders, further confirming that the industrial chain is moving from expectations to delivering results. Core component suppliers are expected to continue to benefit from the double impetus of the expansion of production of complete units and the demand for operation and maintenance of existing units, and the upstream and downstream gas turbine industry chains will usher in a continuous boom cycle. In addition, Dongfang Electric also previously announced that it will accept an order for the G50 Canadian data center gas turbine business. The bank is optimistic about the gas turbine demand gap brought about by the acceleration of data center construction in North America, and is even more optimistic that Chinese gas engine companies will go overseas to achieve a sharp rise in quantitative profits in North America.
Risk Alerts
Demand for gas engines in North America fell short of expectations; domestic gas engine manufacturers fell short of expectations when going overseas, etc.