GE Vernova Inc. (NYSE:GEV) Q1 2025 Results Conference Call April 23, 2025 7:30 AM ET Company Participants Michael Lapides - Vice President of Investor Relations Scott Strazik - Chief Executive Officer Ken Parks - Chief Financial Officer Conference Call Participants Nicole DeBlase - Deutsche Bank Mark Strouse - JPMorgan Joe Ritchie - Goldman Sachs Chris Dendrinos - RBC Capital Markets Andrew Percoco - Morgan Stanley Nigel Coe - Wolfe Research Julian Mitchell - Barclays Julien Dumoulin-Smith - Jefferies Andre ...

GE Vernova (GEV) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to loss of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 102.22%. A quarter ago, it was expected that this the energy business spun off from General Electric would post earnings of $2.32 per share when it actually produced earnings of $1.73, delivering a surprise of -25.43%.Over t ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-41966 UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 March 31, 2025 OR (Exact name of registrant as specified in its charter) Delaware 92-2646542 (State or other jurisdiction of incor ...

GE Vernova reports first quarter 2025 financial results Strong 1Q'25 results with continued growth, margin expansion and significant cash generation First Quarter 2025 Highlights: CAMBRIDGE, Mass., (April 23, 2025) – GE Vernova Inc. (NYSE: GEV), a unique industry leader enabling customers to accelerate the energy transition, today reported financial results for the first quarter ending March 31, 2025. "We delivered strong results in the first quarter and our businesses continued to execute well. We grew our ...

Group 1 - GE Aerospace is set to release its first-quarter earnings results on April 22, with expected earnings of $1.27 per share, an increase from $0.82 per share in the same period last year [1] - The projected quarterly revenue for GE Aerospace is $9.05 billion, down from $15.17 billion a year earlier [1] - GE Aerospace shares experienced a decline of 1.9%, closing at $178.35 [2] Group 2 - On April 8, GE Aerospace and MTU Maintenance entered into an agreement to service GEnx engines at an expanded facility in Fort Worth [2] - Analysts have provided various ratings and price targets for GE Aerospace, with Wells Fargo raising its target from $203 to $212 [6] - Citigroup reduced its price target from $235 to $227 while maintaining a Buy rating [6]

Company Overview - GE Vernova Inc. is set to release its Q1 2025 financial results on April 23, 2025, with analysts expecting adjusted earnings per share of 42 cents and sales of $7.54 billion [1] - BofA Securities analyst Andrew Obin anticipates GE Vernova to maintain its 2025 guidance of $36-$37 billion in revenue and a high-single-digit adjusted EBITDA margin [1][2] Financial Performance Expectations - BofA Securities forecasts an adjusted EBITDA of $0.3 billion for Q1 2025, aligning with consensus expectations [2] - A maintained 2025 guidance is expected to drive a relief rally in GE Vernova shares [2] Product and Market Developments - GE Vernova plans to supply seven high-efficiency 7HA.02 gas turbines capable of running on hydrogen, with initial deliveries scheduled for 2026 [3] - The demand for these turbines is driven by the increasing needs of technology companies for artificial intelligence and high-performance computing [3] Industry Context - U.S. electric utilities are facing challenges in securing gas turbines due to limited production slots and rising turbine prices [4] - Siemens Energy reported a 52% year-over-year increase in total orders on an organic basis, indicating strong market demand [4] Tariff and Cost Management - GE Vernova's exposure to tariffs is considered manageable, with an estimated limited impact of under $200 million from tariffs on steel and aluminum [5] - The company spends approximately $20 billion on materials, with 55%-60% of product costs attributed to these materials, and only about 5% of that coming from imports [5] Contractual and Strategic Approaches - Most service contracts last around 15 years and include inflation protections, while equipment contracts involve large upfront and milestone payments [6] - Strategies such as hedging, supply agreements, and raw material stockpiling are employed to mitigate tariff-related costs [6] Regulatory Environment - Recent U.S. deregulation efforts are seen as beneficial for natural gas power, including fast-tracking new power projects and revisiting emissions rules [7]

Core Viewpoint - GE Vernova Inc. (GEV) is expected to report its first-quarter 2025 results on April 23, with revenue estimates at $7.53 billion, reflecting a 3.8% year-over-year increase, and earnings per share (EPS) estimated at 45 cents, a significant improvement from a loss of 41 cents in the previous year [1][2]. Revenue Expectations - The Zacks Consensus Estimate for GEV's revenues is $7.53 billion, indicating a 3.8% improvement from the prior-year quarter [2]. - The Power segment's revenue estimate is $3,946 million, showing a decline of 2.2% from the previous year [9]. - The Electrification segment is expected to generate $1,952.8 million, an 18.3% increase from the year-ago quarter [11]. - The Wind segment's revenue is projected at $1,729.1 million, reflecting a 5.5% improvement from the prior year [11]. Earnings Performance - GEV's earnings have outperformed the Zacks Consensus Estimate in two of the last four quarters, with an average negative surprise of 8.57% [2]. - The company's current Earnings ESP is -31.72%, indicating a lower likelihood of an earnings beat this quarter [5][4]. - Factors such as favorable pricing, higher productivity, and cost reduction initiatives are expected to positively influence earnings, despite increased service costs impacting performance [12][13]. Market Performance - GEV's shares have decreased by 1.7% year-to-date, outperforming the Zacks Alternative-Energy industry's decline of 3.3% and the broader Oils-Energy sector's drop of 7% [14]. - The company is trading at a forward 12-month P/E of 41.37X, which is a premium compared to its industry peers [16][17]. Industry Context - The increasing global demand for electricity, driven by data center growth and renewable energy adoption, serves as a key growth catalyst for companies like GEV [19]. - GEV's technology supports approximately 25% of the world's electricity generation, indicating its significant role in the electric power industry [20]. - Challenges in the offshore wind sector, including rising material costs and supply chain issues, may pose risks for GEV [21].

The market expects GE Vernova (GEV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

Core Viewpoint - The analysis indicates a bearish stance on GE Vernova (NYSE: GEV) due to significant wind losses and management's inability to maintain stability during the spin-off process, with the stock previously trading near $376 [1]. Group 1: Company Performance - GE Vernova's stock was trading around $376, highlighting a peak valuation before the downturn [1]. - The company has been experiencing mounting wind losses, which raises concerns about its operational efficiency and financial health [1]. Group 2: Analyst Perspective - The analyst emphasizes a disciplined approach to evaluating companies, focusing on numerical data and underlying business performance rather than market narratives [1]. - The goal is to provide individual investors with a clear and honest assessment of what is functioning well, what is not, and where potential risks and opportunities lie [1].

Core Insights - Anterix is collaborating with major companies like Ericsson, GE Vernova, and Nokia to enhance the deployment of 900 MHz private wireless networks for utilities, offering bundled services to accelerate adoption [1][2][3] - The AnterixAccelerator initiative aims to facilitate the digital transformation of the power grid, with participation from over 15 leading utilities and members of the Anterix Active Ecosystem [2][3] Company Overview - Anterix is the largest holder of licensed spectrum in the 900 MHz band across the contiguous United States, Alaska, Hawaii, and Puerto Rico, positioning itself to provide private wireless broadband solutions for modernized grid applications [5] - The company leads an ecosystem of more than 100 members focused on utility-first solutions to address current challenges faced by utilities [5] Industry Impact - The collaboration is seen as a significant step towards a smarter and more connected energy future, enhancing the resilience and sustainability of utility operations [3] - The initiative supports utilities in modernizing their communication infrastructure, which is critical for integrating advanced technologies and improving operational reliability [3]