GE has announced its results for the second quarter ending June 30, 2022. In the business unit renewable energy, orders of $3.1 billion decreased 3% reported and organically due to continued pressure in the onshore wind equipment market reflecting lower U.S. volume resulting from the PTC expiration, as well as the business' international selectivity strategy.
This decline was partially offset by growth at grid and hydro. Revenues of $3.1 billion decreased by 23% reported and 20% organically due to lower onshore wind deliveries in North America. Partially offsetting this decline was growth in grid and onshore wind services, excluding repower. The segment margin of (13.5%) shrank to 1,110 basis points reported and 1,210 basis points organically, owing to lower onshore wind volume in the United States, higher net inflation, and new product costs. Grid offset some of this pressure by increasing volume and reaping the benefits of prior restructuring actions.
In 2022, GE no longer expects a step-up in profit in renewable energy in the second half due to additional U.S. onshore wind demand pressure, inflation, and fleet durability actions. In the future, renewable energy will become part of GE Vernova, GE's portfolio of energy businesses.