Summary of GE Vernova Investor Update - December 09, 2025 Company Overview - **Company**: GE Vernova (NYSE: GEV) - **Industry**: Energy and Electrification Key Themes and Insights 1. **Growth Opportunities**: The company is experiencing accelerated growth driven by several factors including AI, U.S. reindustrialization, global industrial growth, electrification of buildings, and transportation [6][22][24] 2. **Infrastructure Challenges**: The transition to a larger market will take time due to the complexities of infrastructure development, permitting, and construction [6][7] 3. **Market Position**: GE Vernova is well-positioned with the largest installed base, providing over 50% of the electrons consumed in the U.S. and a third globally (excluding China) [7][8] 4. **Energy Market Dynamics**: The global energy market is valued at over $1.5 trillion, with only 20% currently from electric power. This proportion is expected to grow significantly [9][10] 5. **Contract Wins**: The company secured 18 gigawatts of new gas contracts in the current quarter, with expectations to end the year with approximately 80 gigawatts on contract [10][11] Financial Outlook 1. **Revenue Projections**: GE Vernova projects at least $52 billion in revenue by 2028, with an adjusted EBITDA margin of 20% [17][38] 2. **Free Cash Flow**: Cumulative free cash flow is expected to reach $22 billion from 2025 to 2028, after investing $10 billion in capital expenditures and R&D [17][34] 3. **Capital Allocation**: The company plans to return $3.6 billion to shareholders in 2025, primarily through stock buybacks, and has increased its buyback program from $6 billion to $10 billion [20][35] Segment Performance 1. **Gas Power**: The gas power segment is expected to achieve a run rate of 20 gigawatts annualized by mid-2026, with significant productivity improvements anticipated [26][27] 2. **Electrification**: This segment is projected to grow mid-20% in 2025, with a backlog that has increased fourfold since the end of 2022 [18][30] 3. **Wind Energy**: While wind revenue is expected to decline, the company anticipates improved EBITDA losses in 2026 due to productivity gains [27][33] Strategic Initiatives 1. **Acquisitions**: The planned acquisition of Prolec GE is expected to enhance the company's capabilities in low voltage and grid reliability solutions [8][19] 2. **Nuclear Investments**: GE Vernova is actively working with the U.S. government to re-establish a nuclear industry, with a memorandum of understanding for up to $100 billion in small modular reactor (SMR) industrialization [14][48] 3. **Innovation and R&D**: The company is investing in new technologies such as carbon capture and solid-state transformers, with expectations for commercialization in the coming years [50][51] Cultural and Operational Focus 1. **Workforce Development**: GE Vernova emphasizes the importance of attracting young talent and fostering a strong company culture to drive future growth [52][53] 2. **Lean Operations**: The company is implementing lean practices across its manufacturing processes to enhance productivity and reduce costs [32][31] Conclusion - GE Vernova is positioned for significant growth in the energy sector, with a strong focus on electrification, gas power, and innovative technologies. The company aims to leverage its market position and operational efficiencies to achieve its ambitious financial targets by 2028 and beyond [58][59]

Core Insights - The company is positioned as a leader in the fuel cell industry, emphasizing its experienced products with the lowest total cost of ownership and innovations in power density and functionality [1][2][3] - The market for fuel cell buses is growing, with nearly 60% of new bus sales being zero-emission, indicating a shift away from combustion engines [3][4] - The company reported a significant revenue increase of 120% year-over-year, primarily driven by bus and rail segment deliveries, and achieved a positive gross margin of 15% [4][15] Product and Market Developments - The FC Move SC product was launched at Bus World, receiving positive feedback from OEMs, highlighting its potential to lower total cost of ownership [1][4] - The company is enhancing its product offerings with additional services such as digital operations, maintenance services, and extended warranties, which are expected to improve customer engagement [5][11] - The company has made strides in the rail and marine segments, with a notable order of 6.4 megawatts for marine applications, indicating growth in these markets [6][30] Financial Performance - For Q3 2025, the company reported revenue of $32.5 million, a 120% increase from the previous year, with gross margin improving significantly from negative 56% to 15% [15][16] - Total operating expenses decreased by 36% year-over-year, reflecting the benefits of restructuring actions [16][18] - The company ended the quarter with $25.7 million in cash and no bank debt, indicating a strong balance sheet and financial health [18][19] Strategic Focus - The company has decided not to pursue the Texas Gigafactory development, believing existing manufacturing capacity can meet forecasted volumes, demonstrating a commitment to capital discipline [12] - There is a strategic shift to reduce involvement in the joint venture in China, allowing a focus on North America and Europe [12] - The company aims to achieve cash flow positivity and is making progress towards this goal through disciplined capital spending and product innovation [11][20]