GE Vernova Inc.(US:GEV)2025-07-23 10:23Financial Performance - Total revenues for Q2 2025 reached $9,111 million, a 11.0% increase from $8,204 million in Q2 2024[14] - Net income attributable to GE Vernova for Q2 2025 was $514 million, down 60.3% from $1,294 million in Q2 2024[19] - Gross profit for the first half of 2025 was $3,316 million, compared to $2,852 million in the same period of 2024, reflecting a 16.3% increase[14] - Operating income for the first half of 2025 was $421 million, significantly higher than $238 million in the same period of 2024[14] - The company reported a comprehensive income of $707 million for Q2 2025, compared to $934 million in Q2 2024[19] - The company reported a net income of $492 million for the quarter ending June 30, 2025, compared to a net income of $1,280 million for the same quarter in 2024[21] - Net income for the three months ended June 30, 2025, was $0.5 billion, a decrease of $0.8 billion compared to the same period in 2024, resulting in a net income margin of 5.4%[124] - Total revenues for the three months ended June 30, 2025, were $9.1 billion, an increase of $0.9 billion (11%) compared to the same period in 2024[124] Cash Flow and Liquidity - Cash from operating activities for the first half of 2025 was $1,528 million, compared to $535 million in the same period of 2024, indicating a substantial improvement[18] - Cash flows from operating activities for the six months ended June 30, 2025, were $1.5 billion, compared to $0.5 billion for the same period in 2024[124] - Free cash flow for the six months ended June 30, 2025, was $1.169 billion, a significant increase from $161 million in 2024[174] - Cash used for financing activities was $(1.9) billion for the six months ended June 30, 2025, an increase of $4.8 billion compared to $2.9 billion in 2024[181] - Cash inflow from changes in working capital was $1.6 billion for the six months ended June 30, 2025, driven by contract liabilities and current deferred income of $1.9 billion[177] Assets and Liabilities - Total assets increased to $53,078 million as of June 30, 2025, compared to $51,485 million at the end of 2024, representing a 3.1% growth[16] - As of June 30, 2025, total equity amounted to $9,947 million, with a net parent investment of $(1,445) million[22] - The total current receivables as of June 30, 2025, were $6,948 million, a decrease from $8,177 million at the end of 2024[32] - The total long-term receivables increased to $985 million as of June 30, 2025, compared to $745 million as of December 31, 2024, reflecting a growth of 32.2%[35] - The balance of contract liabilities and deferred income increased to $19,751 million as of June 30, 2025, compared to $17,744 million as of December 31, 2024, marking a growth of 11.3%[46] Segment Performance - Total segment revenues increased to $9,204 million for the three months ended June 30, 2025, from $8,307 million in the same period of 2024, representing an increase of 10.8%[107] - Segment EBITDA for the Power segment was $778 million for the three months ended June 30, 2025, compared to $613 million in 2024[107] - Power segment organic revenue increased by 9% to $4,731 million in Q2 2025 compared to $4,325 million in Q2 2024, with segment EBITDA rising to $739 million, reflecting a margin increase of 0.4 percentage points to 15.6%[198] - Wind segment organic revenue also grew by 9% to $2,252 million in Q2 2025, although segment EBITDA showed a loss of $150 million, resulting in a margin decline of 2.0 percentage points to (6.7)%[198] - Electrification segment organic revenue surged by 20% to $2,153 million in Q2 2025, with segment EBITDA increasing to $309 million, leading to a margin improvement of 7.4 percentage points to 14.4%[198] Research and Development - Research and development expenses increased to $282 million in Q2 2025, up from $237 million in Q2 2024, marking a 19.0% rise[14] Shareholder Returns - Dividends declared were $138 million, at a rate of $0.50 per common share[22] - The company repurchased $381 million worth of common stock during the reported period[21] - The company repurchased 1.2 million shares for $379 million during the three months ended June 30, 2025, and 5.2 million shares for $1,583 million during the six months ended June 30, 2025[69] Market and Economic Factors - The estimated cost impact from global tariffs for the full year 2025 is approximately $300 million to $400 million[120] - The company experienced foreign currency effects that positively impacted revenues by $66 million in Q2 2025, compared to a minimal effect of $3 million in Q2 2024[201] - Market risks related to foreign currency exchange rates, interest rates, and commodity prices are managed through financial instruments, with foreign currency fluctuations having a negligible impact on earnings for the periods reported[209] Internal Controls and Compliance - The Company evaluated its disclosure controls and procedures and concluded they were effective as of June 30, 2025[210] - The Company continued to exit various transition service agreements with GE Aerospace, impacting internal controls related to financial reporting[211] - No material changes in the Company's internal control over financial reporting occurred during the quarter ended June 30, 2025[211] - The Company is subject to various risks that could adversely affect its business and financial condition, as outlined in the Annual Report for the fiscal year ended December 31, 2024[213]