GE Vernova (NYSE:GEV) Q4 2025 Earnings call January 28, 2026 07:30 AM ET Company ParticipantsKenneth Parks - CFOMichael Lapides - VP of Investor RelationsScott Strazik - CEOConference Call ParticipantsNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystOperatorGood day, ladies and gentlemen, and welcome to GE Vernova's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. ...

Financial Data and Key Metrics Changes - The company booked $59 billion in orders, a 34% year-over-year increase, and grew revenue by 9% year-over-year to $38 billion, with adjusted EBITDA margin expanding by 210 basis points year-over-year [12][21] - Free cash flow reached $3.7 billion, more than double the prior year, while cash balance at year-end was nearly $9 billion, up approximately $1 billion compared to the third quarter [20][12] - The company is increasing its 2026 guidance for revenue to $44 billion-$45 billion, up from $41 billion-$42 billion, and free cash flow guidance to between $5 billion and $5.5 billion, up from $4.5 billion-$5 billion [33][12] Business Line Data and Key Metrics Changes - In the Electrification segment, revenue grew by 26% year-over-year, with equipment orders increasing by over 20% [21][30] - Power segment revenue increased by 10% year-over-year, with orders growing more than 50% [22][21] - Wind segment faced challenges with a 25% decrease in revenue in Q4 due to lower onshore equipment deliveries, resulting in EBITDA losses of $225 million [26][25] Market Data and Key Metrics Changes - The total backlog increased by over 25% or $31 billion to $150 billion, with significant growth in power and electrification [7][18] - Gas power equipment backlog increased from 62 GW to 83 GW sequentially, driven by strong U.S. demand and international agreements [7][18] - Electrification's total backlog grew to $35 billion, up $4 billion sequentially and $11 billion year-over-year, marking its largest growth quarter [8][30] Company Strategy and Development Direction - The company is focused on profitable growth, with a strong emphasis on capital allocation and the integration of the Prolec GE acquisition [5][6] - There is a clear pathway to substantial growth in electrification, with expectations of $13.5 billion-$14 billion in revenue for 2026 [10][34] - The company anticipates significant improvements in wind revenue in the second half of 2026, despite expected low double-digit declines in organic revenue [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand environment across multiple products, particularly in gas and electrification [16][38] - The company is addressing challenges in the offshore wind segment due to regulatory delays but remains focused on executing its backlog [26][29] - Management highlighted the importance of ongoing investments in automation and AI to drive future productivity and margin expansion [11][41] Other Important Information - The company returned $3.6 billion to shareholders in 2025 through dividends and share repurchases, and plans to double its dividend in 2026 [12][11] - The company expects to maintain a gross debt to adjusted EBITDA ratio below 1x after issuing approximately $2.6 billion of debt for the Prolec GE acquisition [20][12] Q&A Session Summary Question: Gas power equipment orders momentum - Management confirmed that pricing continues to strengthen, with expectations of reaching 100 GW by the end of 2026, shifting towards a higher proportion of orders [48][49] Question: Threat from smaller turbine makers - Management believes smaller applications enable more projects but does not view them as direct competition, maintaining confidence in their heavy-duty gas turbines [53][55] Question: Backlog margins for power - Management confirmed expectations for continued growth in backlog margins, projecting at least $8 billion in equipment margin and backlog in 2026 [58][59] Question: Electrification segment growth - Management emphasized the unique solutions provided by linking power generation and electrical equipment, contributing to significant growth in the electrification segment [65][66] Question: Nuclear project opportunities - Management noted ongoing discussions with governments to restart the nuclear industry, with a growing opportunity pipeline but longer timelines for closing deals [80][82]

Financial Data and Key Metrics Changes - In 2025, the company booked $59 billion in orders, a 34% year-over-year increase, and grew revenue by 9% to $38 billion, with adjusted EBITDA margin expanding by 210 basis points year-over-year [12][20] - Free cash flow reached $3.7 billion, more than double the previous year, while cash balance at year-end was nearly $9 billion, up approximately $1 billion compared to the third quarter [19][11] - The company increased its 2026 guidance for revenue to $44 billion-$45 billion, up from $41 billion-$42 billion, and free cash flow guidance to $5 billion-$5.5 billion, up from $4.5 billion-$5 billion [32][36] Business Line Data and Key Metrics Changes - Power segment orders grew over 50% in 2025, with revenue increasing by 10% and EBITDA margins expanding by 100 basis points to 14.7% [21][23] - Electrification segment saw a 26% revenue growth in 2025, with EBITDA margins expanding by 560 basis points to 14.9% [30][10] - Wind segment faced challenges with a 25% revenue decrease in Q4 due to lower onshore equipment deliveries, resulting in EBITDA losses of $225 million [25][24] Market Data and Key Metrics Changes - The total backlog increased by over 25% or $31 billion to $150 billion, with significant growth in power and electrification [6][12] - Gas power equipment backlog increased from 62 GW to 83 GW sequentially, driven by strong U.S. demand and international agreements [6][4] - Electrification's total backlog grew to $35 billion, up $4 billion sequentially and $11 billion year-over-year, marking its largest growth quarter [8][30] Company Strategy and Development Direction - The company is focused on profitable growth, with a strong emphasis on capital allocation and the integration of the Prolec GE acquisition [5][11] - There is a clear pathway to substantial growth in electrification, with expectations of $13.5 billion-$14 billion in revenue for 2026, representing 20% organic growth [10][33] - The company aims to leverage automation and AI investments to enhance productivity and operational efficiency [11][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand and pricing in gas power, with expectations for continued growth in 2026 [15][34] - The company acknowledged challenges in the offshore wind segment due to regulatory delays but remains focused on executing its backlog [25][26] - Management highlighted the importance of ongoing discussions with the U.S. administration regarding energy policies that could enhance market conditions for gas power [86][87] Other Important Information - The company returned $3.6 billion to shareholders in 2025 through share repurchases and dividends, and plans to double its dividend in 2026 [11][12] - The Prolec GE acquisition is expected to enhance the company's capabilities in electrification and contribute significantly to revenue growth [5][68] - The company anticipates a significant increase in gas turbine output starting in Q3 2026, which is expected to drive future profitability [40][41] Q&A Session Summary Question: Gas power equipment orders momentum - Management confirmed that pricing continues to strengthen, with expectations of reaching 100 GW in orders by the end of 2026, shifting towards a higher proportion of orders [49][50] Question: Threat from smaller turbine makers - Management believes smaller applications enable more projects but does not view them as direct competition, maintaining confidence in their heavy-duty gas turbines [53][55] Question: Backlog margins for power - Management confirmed that backlog margins are expected to continue improving in 2026, with a target of adding at least $8 billion in equipment margin [58][59] Question: Electrification segment growth - Management emphasized the unique solutions provided by linking power generation and electrical equipment, contributing to significant growth in electrification orders [65][66] Question: Nuclear project opportunities - Management noted ongoing discussions with governments to restart the nuclear industry, with a growing opportunity pipeline but longer timelines for project announcements [79][80]

4Q & Full Year 2025 Financial Results & Outlook January 28, 2026 © 2026 GE Vernova and/or its affiliates. All rights reserved. GE and the GE Monogram are trademarks of General Electric Company used under trademark license 1 Caution concerning forward-looking statements: Certain statements contained in this presentation may constitute "forward-looking statements" that involve risks and uncertainties. These statements by their nature address matters that are uncertain to different degrees. Forward-looking sta ...

Core Viewpoint - GE Vernova's stock has experienced a rally following an earnings beat and an increased outlook, driven by sustained strong demand for electric-grid equipment [1] Group 1: Earnings Performance - The company reported earnings that exceeded market expectations, contributing to the positive stock performance [1] - The raised outlook indicates confidence in future growth, reflecting the company's strong position in the market [1] Group 2: Market Demand - There is continued strong demand for electric-grid equipment, which is a key driver of the company's performance [1] - This demand is likely to support the company's growth trajectory in the coming quarters [1]

Core Viewpoint - GE Vernova has raised its outlook for the upcoming year due to increased profit and revenue in the fourth quarter, driven by strong performance in its power and electrification sectors [1] Group 1: Financial Performance - The company reported higher profit and revenue in the fourth quarter [1] - The growth was attributed to continued momentum in its power and electrification businesses [1]

GE Vernova reports fourth quarter and full year 2025 financial results; increasing outlook with Prolec GE acquisition Strong performance with significant orders and backlog growth, margin expansion, and cash generation Fourth Quarter 2025 Highlights: Full Year 2025 Highlights: CAMBRIDGE, Mass., (January 28, 2026) – GE Vernova Inc. (NYSE: GEV), a unique industry leader enabling customers to accelerate the energy transition, today reported financial results for the fourth quarter and full year ending December ...

GE Vernova on Wednesday forecast annual revenue above Wall Street expectations, backed by strong sales of its gas turbines and storage equipment to power generation firms that are rushing to meet risi... ...

Core Viewpoint - GE Vernova Inc. is expected to report significant earnings growth in the fourth quarter, with earnings per share projected to rise to $3.13 from $1.73 year-over-year, despite a slight decline in quarterly revenue expectations [1]. Group 1: Earnings and Revenue Expectations - GE Vernova is anticipated to release its fourth-quarter earnings on January 28, with expected earnings of $3.13 per share, an increase from $1.73 per share in the same quarter last year [1]. - The consensus estimate for quarterly revenue is $10.22 billion, down from $10.56 billion reported in the previous year [1]. Group 2: Recent Company Developments - On December 9, GE Vernova raised its FY28 outlook, increased its dividend, and expanded its buyback authorization, leading to a 4% increase in share price, closing at $692.70 [2]. Group 3: Analyst Ratings and Price Targets - Citigroup analyst Andrew Kaplowitz maintained a Neutral rating and raised the price target from $658 to $708 [3]. - GLJ Research analyst Austin Wang maintained a Buy rating and increased the price target from $758 to $1,087 [3]. - Baird analyst Ben Kallo downgraded the stock from Outperform to Neutral, cutting the price target from $816 to $649 [3]. - Barclays analyst Julian Mitchell maintained an Overweight rating and raised the price target from $800 to $830 [3]. - RBC Capital analyst Christopher Dendrinos maintained an Outperform rating with a price target of $761 [3].

The telecommunications company attributed the rise to higher earnings from operations and lower taxes and said it would launch a share buyback. ...