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]