GE Vernova Q4 Earnings Call Highlights

Core Insights - GE Vernova anticipates reaching approximately 100 GW under contract by 2026, with expectations of "high teens" GW of shipments and over 30 GW of new contracts [1] Group 1: Financial Performance - Fourth-quarter revenue increased by 2% year-over-year, with services growing across all segments, while equipment revenue remained flat [3] - For the full year, GE Vernova reported $59 billion in orders, a 34% increase year-over-year, and $38 billion in revenue, up 9% [4] - Adjusted EBITDA rose by 6% to $1.2 billion in the fourth quarter, with free cash flow reaching $1.8 billion [3] Group 2: Order Growth and Backlog - GE Vernova's total backlog increased by over 25% to $150 billion, with fourth-quarter orders totaling $22.2 billion, a 65% year-over-year increase [5][6] - Gas power equipment backlog rose from 62 GW to 83 GW, with new gas contracts totaling 24 GW in the fourth quarter [2] Group 3: Electrification Segment - Electrification segment saw over 25% revenue growth in 2025, with fourth-quarter orders increasing by 50% year-over-year to about $7.4 billion [9][11] - Segment EBITDA margins expanded by 560 basis points to 14.9% for the year, driven by volume, price, and productivity [10] Group 4: Wind Segment Challenges - GE Vernova faced approximately $600 million in wind losses for 2025 due to a U.S. government stop-work order affecting the Vineyard Wind project [13][15] - Fourth-quarter wind revenue declined by 25% year-over-year, with a $225 million EBITDA loss [16] Group 5: Future Guidance and Capital Allocation - Management raised 2026 guidance, expecting organic revenue growth of 16% to 18% in power and $13.5 billion to $14 billion in electrification revenue [18][19] - The company plans to return $3.6 billion to shareholders in 2025 and is doubling its dividend in 2026 [18]