GEV going apesh*t:
GE Vernova Lifts Outlook As Revenue And Orders Surge
Shares of
GE Vernova Inc. (GEV) rose Wednesday after the company posted better-than-expected second-quarter 2025 earnings and raised its full-year guidance.
The energy transition company reported second-quarter earnings per share of $1.86, beating the consensus estimate of $1.69.
Revenue came in at $9.11 billion, exceeding Wall Street’s expectations of $8.78 billion. That marks an 11% increase from a year ago and 12% on an organic basis, driven by continued strength in both equipment and services.
Net income for the quarter was $492 million, with a net margin of 5.4% down 1020 bps. Adjusted EBITDA rose to $770 million, with an Adj. EBITDA margin of 8.5%, up from 6.4% a year ago.
Operating cash flow totaled $367 million, down from $978 million YoY, while free cash flow was $194 million for the quarter. The company ended the quarter with $7.9 billion in cash.
“We had a productive second quarter, positioning us well to accelerate growth and margin expansion,” said CEO
Scott Strazik. “We grew our backlog by more than $5 billion and increased Gas Power slot reservation agreements from 50 to 55 gigawatts.”
GE Vernova’s backlog rose by $5.2 billion during the quarter, fueled by gains in equipment and service contracts. Gas Power equipment backlog remained at 29 gigawatts, while slot reservation agreements increased to 25 gigawatts. The company also received final investment approval from the Ontario government to build the first small modular reactor (SMR) in the Western world.
Segment Highlights
Power:
- Orders: $7.088 billion, +44% organically.
- Revenue: $4.758 billion, up 7% year-over-year, 9% organically.
- Segment EBITDA margin expanded by 260 basis points to 16.4%.
- Signed 9 GW in new gas equipment contracts, including 7 GW in slot reservations.
Wind:
- Orders: Down 5% organically to $2.06 billion.
- Revenue: $2.245 billion, up 9% from a year ago, driven by Onshore Wind deliveries.
- Segment losses increased due to Offshore Wind tariffs and service costs, partly offset by higher Onshore equipment volume.
- Invested over $100 million in its 57,000-unit turbine fleet.
Electrification:
- Orders: $3.34 billion, down 31% organically.
- Revenue: $2.2 billion, up 23%, led by Grid Solutions.
- Segment EBITDA margin improved by 740 basis points to 14.6%.
- Equipment backlog grew sequentially by $2 billion across North America, Europe, and Asia.
GE Vernova (GEV) repurchased 1.2 million shares during the quarter and has bought back 5.2 million shares year-to-date through June 30 at an average price of $306.
The Board declared a 25-cent per share dividend, payable August 18 to shareholders of record as of July 21.
Updated 2025 Outlook
GE Vernova (GEV) raised its 2025 guidance, expecting revenue to trend toward the higher end of its $36 billion to $37 billion range versus $36.952 billion estimate. The company also lifted its adjusted EBITDA margin forecast to 8% to 9%, up from high-single-digit estimates. It also increased its free cash flow guidance from $3.0 billion to $3.5 billion, from the prior $2.0 billion to $2.5 billion range.
Segment guidance includes:
- Power: 6%-7% organic revenue growth and 14%-15% EBITDA margin.
- Wind: Mid-single-digit organic revenue decline with $200 million-$400 million in segment losses, trending toward the lower end.
- Electrification: ~20% organic revenue growth and 13%-15% EBITDA margin.
GE Vernova (GEV) said its guidance includes the impact of tariffs and inflation, now estimated toward the lower end of $300 million to $400 million, net of mitigation.
CFO
Ken Parks said the company is trending toward the higher end of its targets. “We’re delivering disciplined revenue growth, margin expansion and positive free cash flow while returning capital to shareholders and maintaining a solid balance sheet,” Parks said.
