Group 1 - GE Vernova reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.6 per share, and showing a significant increase from $0.71 per share a year ago, resulting in an earnings surprise of +16.25% [1] - The company achieved revenues of $9.11 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.26%, and up from $8.2 billion year-over-year [2] - GE Vernova's shares have increased approximately 66.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.85 on revenues of $9.4 billion, and for the current fiscal year, it is $7.38 on revenues of $37.26 billion [7] - The Zacks Industry Rank indicates that the Alternative Energy - Other sector is currently in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] Group 3 - GE Vernova has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] - The estimate revisions trend for GE Vernova was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - The company reported a 4% year-over-year increase in orders, totaling $12.4 billion, with equipment orders growing by 5% driven by power, which more than doubled year-over-year [21] - Revenue increased by 12%, with equipment revenue growing by 18% and services revenue increasing by 6% [22] - Adjusted EBITDA rose over 25% to $770 million, with an adjusted EBITDA margin expansion of 80 basis points [23] Business Line Data and Key Metrics Changes - Power orders grew by 44%, with gas power equipment orders nearly tripling year-over-year [26] - Wind orders decreased by 5% year-over-year, primarily due to lower onshore wind equipment orders outside of North America [30] - Electrification orders remained strong at approximately $3.3 billion, although total orders decreased by 31% year-over-year due to large orders recorded in the previous year [33] Market Data and Key Metrics Changes - The equipment backlog grew from $45 billion to $50 billion in Q2, with a total backlog now reaching $129 billion [17][18] - The company expects at least $1.5 billion of agreements in the Middle East to convert into orders in Q3 [9] - Demand for data centers remains strong, with nearly $500 million in orders in the first half of 2025 [10] Company Strategy and Development Direction - The company is focusing on robotics and automation as part of its strategy to improve productivity and efficiency [13] - There is a strong emphasis on maintaining financial strength while investing in organic growth and strategic acquisitions [14][15] - The company plans to restructure to improve efficiency, with expected costs of approximately $250 million to $275 million over the next twelve months [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by electrification and power markets, with expectations for continued margin improvement [5][42] - The company anticipates challenges in the European HVDC market but sees strong momentum in other segments [10] - Management highlighted the importance of maintaining a disciplined approach to pricing and project management in the electrification segment [50][51] Other Important Information - The company ended Q2 with a cash balance of approximately $8 billion and no debt, allowing for continued investment in growth and shareholder returns [25] - The company has repurchased approximately $1.6 billion in stock year-to-date [14] Q&A Session Questions and Answers Question: Can you provide more color on the demand outlook for the electrification segment, particularly regarding regional differences? - Management noted that while Europe is losing steam, Asia is picking up, and there is a need to drive variable cost productivity due to decelerating pricing [49][50] Question: What is the pricing dynamic for services in the Gas Power business? - Management indicated that there is a price-up environment in services, which will materialize in the income statement over the next 12 to 24 months [54] Question: Why are gross margins declining, particularly in service gross margins? - Management explained that the gross margins moved due to the mix of revenues between equipment and services, which is expected to set up for a positive future [87]

Financial Data and Key Metrics Changes - The company reported a 12% increase in revenue, with equipment revenue growing by 18% and services revenue increasing by 6% [22][20] - Adjusted EBITDA rose over 25% to $770 million, with an adjusted EBITDA margin expansion of 80 basis points [23][20] - The total backlog reached $129 billion, with equipment backlog growing from $45 billion to $50 billion in Q2 [17][18] Business Line Data and Key Metrics Changes - Power orders grew by 44%, driven by gas power equipment nearly tripling year over year [26] - Wind orders decreased by 5% year over year, primarily due to lower onshore wind equipment orders outside of North America [30] - Electrification orders remained strong at approximately $3.3 billion, although total orders decreased by 31% year over year due to large orders recorded in the previous year [33] Market Data and Key Metrics Changes - The company signed nine gigawatts of new gas equipment contracts in Q2, with a total backlog in slot reservation agreements growing to 55 gigawatts [6][17] - Demand for data centers remains strong, with nearly $500 million in orders in the first half of 2025 [10] - The Middle East market is accelerating, evidenced by a significant agreement for synchronous condensers [9] Company Strategy and Development Direction - The company is focusing on robotics and automation to improve productivity and efficiency in operations [13] - Strategic acquisitions are being pursued to enhance capabilities, such as the acquisition of Woodward's gas turbine parts business [15] - The company is investing in electrification and grid solutions, anticipating significant growth in these areas [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by electrification and power demand, with expectations for continued margin expansion [5][41] - The company is navigating challenges in the European market but sees strong momentum in other regions [10][11] - Management highlighted the importance of maintaining financial strength while investing in growth opportunities [14][25] Other Important Information - The company plans to incur restructuring costs of approximately $250 million to $275 million over the next twelve months to improve efficiency [18] - Free cash flow generation remains strong, with approximately $200 million in Q2 and a total of $1.2 billion in the first half of 2025 [23][25] - The company ended Q2 with a cash balance of nearly $8 billion and no debt, allowing for continued investment in growth [25] Q&A Session All Questions and Answers Question: Can you provide more color on the demand outlook for the electrification segment, particularly regarding regional differences? - Management noted that while Europe may be losing steam, Asia is picking up, and there is a need to drive variable cost productivity due to decelerating pricing [46][48] Question: What are the pricing dynamics for the Gas Power business, particularly on the service side? - Management indicated that there is a price-up environment in services, which will materialize in the income statement over the next 12 to 24 months [51][52] Question: Can you clarify the dynamics behind the new equipment orders in power and the revenue increase? - Management explained that they booked nine gigawatts of orders, with a positive pricing dynamic contributing to the revenue increase [56][57] Question: What is the outlook for capacity in the gas segment and the impact of the Pennsylvania plant announcement? - Management stated that they aim to reach a 20-gigawatt run rate by the second half of 2026 and are focused on backlog growth [62][64] Question: What are the implications of the recent tax bill on the power business? - Management observed an acceleration of activity in wind and solar, with a growing pipeline for gas demand as well [81][82] Question: Why are gross margins declining, particularly in service gross margins? - Management attributed the decline to a mix issue between equipment and services, indicating a positive future outlook as new equipment units are delivered [87]

Financial Performance - GE Vernova's orders increased by 4% from $11.8 billion in 2Q'24 to $12.4 billion in 2Q'25[11] - The company's backlog grew by $13.2 billion, reaching $128.7 billion in 2Q'25 compared to $115.5 billion in 2Q'24[11] - Revenue increased by 12% from $8.2 billion in 2Q'24 to $9.1 billion in 2Q'25[11] - Adjusted EBITDA increased by $0.2 billion, from $0.5 billion in 2Q'24 to $0.8 billion in 2Q'25[11] - Adjusted EBITDA margin expanded by 80 bps, from 6.4% in 2Q'24 to 8.5% in 2Q'25[11] - Free cash flow decreased by $0.6 billion, from $0.8 billion in 2Q'24 to $0.2 billion in 2Q'25, but year-to-date improved by $1 billion[11] Segment Performance - Power segment orders increased from $5.0 billion to $7.1 billion, and revenue increased by 9%[15] - Electrification segment revenue increased by 20%[26] - Wind segment revenue grew by 9%[21] Guidance - GE Vernova is raising its 2025 revenue guidance to $36 billion - $37 billion[29]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission file number 001-41966 GE Vernova Inc. WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbo ...

Group 1 - GE Vernova Inc. is set to release its second-quarter earnings results on July 23, with expected earnings of $1.50 per share, an increase from $1.02 per share in the same period last year [1] - The company is projected to report quarterly revenue of $8.8 billion, up from $8.2 billion a year earlier [1] - GE Vernova plans to invest up to $100 million in Pennsylvania over the next two years, creating approximately 700 new jobs across multiple factories [2] Group 2 - Analysts have provided various ratings and price targets for GE Vernova, with B of A Securities raising the price target from $550 to $620 [4] - JP Morgan also raised its price target from $460 to $620, while Barclays increased its target from $550 to $580 [4] - UBS initiated coverage with a Buy rating and a price target of $614, and Morgan Stanley raised its target from $422 to $511 [4]

Group 1 - GE Vernova Inc. (GEV) is selling 29 natural gas turbines to Crusoe [1] - Crusoe will allocate these turbines to multiple data centers [1]

Core Insights - GE Vernova (GEV) is expected to report quarterly earnings of $1.60 per share, marking a significant increase of 125.4% year-over-year, with revenues projected at $8.82 billion, reflecting a 7.5% increase from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised 5.3% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts predict 'Revenues- Power' to be $4.65 billion, a 4.4% increase from the prior-year quarter [5] - 'Revenues- Wind' is expected to reach $2.18 billion, indicating a 5.8% year-over-year change [5] - 'Revenues- Electrification' is forecasted at $2.11 billion, reflecting an 18.1% increase from the previous year [5] - 'Revenues- Sales of equipment' is estimated at $4.59 billion, a 9.5% increase from the prior-year quarter [6] - 'Revenues- Sales of services' is projected to be $4.27 billion, showing a 6.4% increase from the year-ago quarter [6] Stock Performance - GE Vernova shares have returned +13.2% over the past month, outperforming the Zacks S&P 500 composite, which saw a +5.9% change [6]

Core Insights - The global economy is rapidly moving towards decarbonization, electrification, and clean energy independence, positioning companies like GE Vernova (GEV) and Enphase Energy (ENPH) as key players in the green energy transition [1][3] - Investor interest in GEV and ENPH is increasing due to supportive government climate policies, rising energy demand, and the adoption of distributed generation and digital energy solutions [1] Company Overview - GE Vernova is focused on decarbonizing power generation with segments in gas power, wind energy, and grid solutions, aiming to lead in grid modernization and renewable infrastructure [2] - Enphase Energy specializes in solar microinverter systems, energy storage, and residential energy management, positioning itself as a strong player in the decentralized clean energy market [2] Financial Stability & Growth Drivers - As of March 31, 2025, GEV has cash and cash equivalents of $8.11 billion and no debt, allowing it to invest $5 billion in R&D through 2028 [4][5] - Enphase Energy has cash and cash equivalents of $1.53 billion, with total debt of $1.2 billion, indicating a solid solvency position to support product innovation and market opportunities [6] - GEV is gaining traction through strategic collaborations, including a contract to supply gas turbines in Puerto Rico and agreements for nuclear energy projects in Finland and Sweden [7][8] - Enphase is expanding globally with innovative product launches, such as the IQ Battery 5P and IQ EV Charger 2, enhancing its customer base in Europe and Australia [9][10] Stock Performance & Valuation - GEV has seen a stock surge of 244.6% over the past year, while ENPH has declined by 62.2% [10] - GEV's forward P/E ratio is 58.68X, significantly higher than ENPH's 14.29X, indicating a more attractive valuation for ENPH [19] - ENPH demonstrates better Return on Equity (ROE) compared to GEV, suggesting greater capital efficiency [22] Earnings Estimates - The Zacks Consensus Estimate for GEV's 2025 sales and EPS indicates improvements of 6.7% and 32.3%, respectively [15] - For ENPH, the 2025 sales estimate suggests an 8.9% increase, while EPS is expected to rise by 3.8% [16] Investment Appeal - GEV's strong recent performance and earnings estimate revisions reflect market optimism, but its high valuation and challenges in offshore wind may limit efficiency [24] - ENPH offers a more attractive valuation and superior capital efficiency, despite its recent stock lag, indicating potential for recovery [24] - Investors seeking growth may prefer GEV, while those focused on value might find better opportunities in ENPH [25]

Core Insights - GE Vernova (NYSE: GEV) has seen its stock price increase by nearly 68% year-to-date, significantly outperforming the S&P 500, driven by a robust energy infrastructure supercycle [1] - The company is experiencing a surge in demand for its gas turbines, grid technology, and renewable energy solutions, with a backlog exceeding $120 billion, indicating a booked-out scenario for years [1] - The perception of GE Vernova has shifted from being a slower-growing industrial entity to a strong performer with improved balance sheets and profit margins under new leadership [2] Industry Dynamics - The rapid expansion of AI data centers, electrification, and grid developments is creating a pressing need for energy infrastructure, positioning GE Vernova at the center of this growth [1] - The upcoming Q2 earnings report on July 23 is highly anticipated, with expectations that continued strong performance could sustain the upward trend in stock price [3] - The AI energy boom is expected to persist, further solidifying the demand for Vernova's turbines [3] Investment Considerations - The Trefis High Quality portfolio, which includes 30 stocks, has outperformed the S&P 500 with returns exceeding 91% since its launch, offering a less volatile investment alternative compared to individual stocks [1][4]