Overseas Power Equipment Giants' Results Review: AIDC Ushers in a Boom Cycle as Global Leaders Share the Industry Opportunity

Abstract

Soochow Securities' review of overseas power equipment giants' latest results argues that grid modernization and surging AI data center (AIDC) electricity demand have launched a global grid super-investment cycle, lifting revenue and profits across gas turbine and transmission leaders amid shortages and price increases. GE Vernova's heavy-duty gas turbine orders climbed from 6 units in FY23Q1 to 52 in FY26Q2, with a capacity-based book-to-bill of 3.7x; Siemens Energy's FY26Q3 backlog reached EUR 73 billion, up 38%, with pre-exceptionals margin recovered to 17%. Transmission guidance was raised: GE Vernova lifted FY26 revenue to USD 14.5-15.0 billion (+45-50%) and Siemens Energy to +25-27%. Hitachi Energy's FY26Q1 orders rose 87%; LS Electric's backlog gained 82%; Hyundai Electric's North American orders jumped 106%. AIDC strength extends to distribution and power-supply names: Schneider's North American energy management revenue reached EUR 4.2 billion (organic +25%), Vertiv's backlog hit USD 15 billion (organic +108%), Eaton's global electrical revenue rose 44%, and Delta and Lite-On delivered record results (Delta revenue +48%, net profit +81%). Order-to-revenue ratios above 1 and slow capacity release support durable demand and create export openings for Chinese equipment makers; FY26 consensus PE for GE Vernova, Vertiv, and Delta exceeds 45x. No individual ratings or target prices were given; risks include grid investment, tender timing, AIDC build-out, tariffs, and competition.