GE Vernova Inc.

Cybersecurity and data protection · Insider threats and access controls

Security incidents, data loss, programming or employee errors, social engineering or malfeasance (including by employees or third parties) could result in unauthorized access, use, disclosure, modification, destruction, or denial of access to information, as well as defective products, production downtime, and operational disruptions.

Digital transformation and innovation · Technology obsolescence and evolution

Breakthrough technologies deployed at scale by competitors may reduce the demand for legacy products and technologies. Global competition increasingly depends on innovation in emerging technologies, including nuclear fuels and advanced energy systems, where failure to innovate could limit our ability to participate in new markets.

Cybersecurity and data protection · Third party data security and vendors

We rely on third-party hardware, software, and other components. A supplier's cyber incident could interrupt component availability and our manufacturing or business process. Third-party software (including open source or embedded code), malicious code, or critical vulnerabilities could increase customer risk.

Legal and litigation · Litigation and legal proceedings

Claims, litigation, regulatory proceedings, and enforcement actions could be costly, disruptive, and unpredictable. We are, in the ordinary course of business, regularly subject to claims, lawsuits, regulatory proceedings, inquiries, investigations, and enforcement actions involving customers and their insurers, employees, joint venture and consortium participants, subcontractors, suppliers, and government agencies.

Industry regulation · Safety and environmental regulations

Compliance with EHS laws and regulations could result in significant costs, sanctions, operational restrictions, and reputational harm. We are subject to extensive EHS regulations worldwide, including, for example, hazardous chemical handling laws, and may incur liabilities for personal injury, property damage, and health risks from exposures to hazardous substances.

Capital structure and performance · Financial performance volatility

Adverse changes in market conditions or in our business outlook, as well as future events or strategic decisions (including asset sales or changes in business direction), could result in impairment charges and related losses. Certain non-cash impairments may arise from shifts in strategic goals or broader business environment factors.

Supply chain and procurement · Raw material availability and cost volatility

We operate in a supply-constrained environment and have experienced, and may continue to experience, shortages of materials and skilled labor, inflationary pressures, transportation and logistics challenges, and manufacturing disruptions that affect revenues, profitability, cash flow, and on-time fulfillment.

Supply chain and procurement · Geographic concentration of suppliers

Certain inputs are limited or sole-sourced, concentrated with a small number of suppliers, or primarily available from a single country, including semiconductor chips and critical materials (such as specialty metals and rare earths).

Core operations · Quality control and product defects

A serious product, solution, or execution failure could result in injury or death, widespread power outages, suspension of power production or operations, delivery delays, environmental impacts, or other systemic issues. Actual or perceived design, production, performance, or other quality issues in new introductions or existing product lines have resulted and can result in warranty, maintenance, and other damage claims.

Supply chain and procurement · Transportation and logistics disruption

We depend on multiple forms of transportation and transportation routes. Logistics can be disrupted by weather, strikes or lockouts, inadequate infrastructure or port capacity, hostilities, terrorism, or other events, and transportation costs can be volatile.

Human capital and workforce · Labor relations and union negotiations

Labor disputes, collective bargaining obligations, and other labor actions could disrupt our operations and increase our costs. A significant number of our employees are represented by labor unions under collective bargaining agreements, and many of our European employees are represented by works councils.

Core operations · Capacity utilization and efficiency

A significant event affecting any of our production or operating facilities, particularly when capacity is at or near full utilization or alternative sites are unavailable, may disrupt our ability to supply customers, require us to defer or decline orders, or cause late deliveries. Expanding our capacity to meet current or future demand or support new products requires significant capital investment and lead time.

Innovation and product development · Intellectual property protection and infringement

We may fail to secure, successfully deploy, and protect our IP or defend against third party IP claims. We may be unable to secure, successfully deploy, and protect our IP rights. IP laws and enforcement requirements and standards vary by jurisdiction. In some countries where we do business, there are limited protection or effective remedies.

Market position and competition · Competitive pressure and market share loss

We operate in highly competitive domestic and international markets, and our products, solutions, and services face significant pressure on technology, quality, delivery, and price. Competition has intensified as existing participants expand internationally and as new entrants, including manufacturers from regions such as China, improve quality and reliability.

Market position and competition · Pricing pressure and margin compression

Our products, solutions, and services face significant pressure on technology, quality, delivery, and price. Remaining competitive requires continual development of advanced technologies and product enhancements, as well as cost-effective supply chain, production, and delivery.

Innovation and product development · Product development and randd investment risks

Our business success is dependent upon our ability to innovate and successfully commercialize new technologies in fast-changing markets. The commercial success of technologies such as small modular or other advanced nuclear power, hydrogen-based power generation, carbon capture and sequestration, and grid-scale batteries or other storage solutions depends on factors including the pace of innovation; development costs; capital resource availability; the intensity of competition.

Natural and catastrophic events · Terrorism and security threats

Logistics can be disrupted by weather, strikes or lockouts, inadequate infrastructure or port capacity, hostilities, terrorism, or other events, and transportation costs can be volatile. Events such as armed conflicts, acts and threats of terrorism, civil unrest and political and economic instability in regions where we operate.

Geopolitical and trade · Trade policies tariffs and sanctions

Changes globally in various countries' international trade and investment policies have increased and may in the future increase our costs and could meaningfully reduce demand for our offerings or restrict our ability to sell, manufacture, and transport to or in certain countries. Changes to tariffs, import/export controls, trade barriers, inflation, sanctions, licensing and authorization requirements.

Natural and catastrophic events · Climate change and environmental impact

The physical effects of climate change include increased frequency and severity of significant weather events, natural hazards, rising average temperatures and sea levels, and long-term changes in precipitation. These events and conditions can disrupt our operations and those of our customers and suppliers, damage project sites, cause partial or complete plant or distribution center closures.

Corporate governance · Internal controls and risk management

We implement, communicate, audit and monitor, and enforce group-wide standards and practices across our businesses to address these risks; however, these efforts may not be successful. Failure to manage our geographically diverse operations in light of these challenges could impair our responsiveness to changing conditions and our ability to enforce compliance with group-wide standards.