Core Viewpoint - Siemens Energy plans to invest $1 billion to enhance power grid and gas turbine manufacturing in the U.S. due to rising electricity demand from data centers and artificial intelligence, which is straining the energy infrastructure [1][2]. Group 1: Investment and Job Creation - The investment is expected to create over 1,500 highly skilled jobs in manufacturing, engineering, and operations as Siemens Energy increases its production capacity and workforce in the U.S. [1] - This $1 billion investment is part of a larger $7 billion global expansion plan, which includes upgrades to existing facilities and the construction of a new grid-equipment factory in Mississippi [8]. Group 2: Market Demand and Infrastructure Challenges - Major technology companies are investing hundreds of billions into new U.S. data centers, leading to a significant increase in electricity demand, with projections that data centers could account for 12% of U.S. electricity demand within two years, nearly tripling their share from 2024 [2]. - The surge in power needs from large technology projects has prompted a wave of deals aimed at enhancing generation and grid capacity, although supply-chain constraints and regulatory hurdles are slowing progress [7]. Group 3: Strategic Importance and Future Plans - Siemens Energy has been manufacturing in the U.S. for over a century and views the current situation as a once-in-a-generation growth opportunity driven by the resurgence of U.S. manufacturing and AI expansion [5]. - The new Mississippi facility will be the largest grid-equipment factory for Siemens Energy globally and is expected to be completed by 2028, increasing global production capacity for large gas turbines by approximately 20% [10][11].

Company Overview - GE Vernova Inc. (NYSE:GEV) is a nuclear power company that also manufactures and sells gas turbines, wind turbines, and other heavy equipment [2] - The company has recently gained significant attention from analysts [2] Analyst Coverage - BMO raised GE Vernova's share price target to $785 from $780 while maintaining an Outperform rating, highlighting the company's goal of achieving 100 GW in gas turbine commitments by the end of 2026 [2] - UBS increased its price target for GE Vernova to $936 from $835 and retained a Buy rating, noting margin strength in the company's fourth quarter earnings [2] - Following the earnings report, GE Vernova's shares experienced a notable increase, prompting commentary from Jim Cramer regarding the stock's potential [2] Strategic Moves - GE Vernova's acquisition of transformer manufacturer Prolec is expected to create significant synergies for the company [2]

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 ...

Summary of Gas Turbine Industry Conference Call Industry Overview - The gas turbine industry is critical for meeting growing power needs, particularly in the context of AI and data centers, but demand extends beyond just these sectors [1][2] - The U.S. gas-fired power additions are projected to hit their lowest level in 2024, with only approximately 2.6 GW added, the lowest since the late 1990s [2][13] Key Insights on Demand and Capacity - Approximately 40 GW of gas turbine capacity additions are tracked by 2030, with expectations of increasing to around 90 GW [3] - Demand for gas turbines is not solely driven by data centers; there is significant international demand, coal retirements, and aftermarket needs [2][46] - Major projects include Crusoe's 2.7 GW gas-powered data center in Wyoming and xAI's expansion to 2 GW in the Midwest [2][21][23] OEM Capacity and Strategy - Legacy turbine OEMs are adopting a conservative approach to capacity additions, with some companies requiring 25% deposits for slot reservations, indicating a cautious market outlook [4] - Companies like Mitsubishi and CAT are signaling more measured growth plans, with Mitsubishi planning a 30% increase by FY2026 and CAT targeting a 50 GW capacity by 2030 [4] - New entrants like Boom Supersonic and Doosan Enerbility are attempting to enter the market, but face significant development challenges [8] Supply Chain and Operational Challenges - The gas turbine supply chain is complex, with components requiring rare earths and specialized materials, compounded by overlaps with aerospace jet engines [10] - Lead times for large frame turbines are extending into 2028+, with operational timelines stretching 18-24 months post-shipment [33][39] - There are significant labor constraints and permitting challenges affecting the commissioning of new large gas plants [30][31] Technological Trends and Preferences - There is a shift towards behind-the-meter power solutions due to the urgency of AI workloads, with smaller aeroderivative and industrial turbines gaining preference [9][30] - Gas turbines are still favored for baseload power, but there is increasing interest in gas engines and fuel cells for flexibility and rapid response to load changes [42][44] Market Dynamics and Future Outlook - The market is seeing a mix of technologies deployed to handle AI workload power fluctuations, including gas turbines, gas engines, and energy storage solutions [44] - International demand is strong, particularly in Asia and the Middle East, with significant orders coming from regions focused on local content [46] - The industry is also addressing coal capacity retirements and the need for peaking capacity to balance intermittent renewables [51] Conclusion - The gas turbine industry is at a pivotal point, balancing between traditional power generation needs and the emerging demands of AI and data centers. The cautious approach of OEMs, coupled with complex supply chain dynamics and evolving technological preferences, will shape the future landscape of the industry.

Earnings Reports - Nucor, described as the "best steel company in the world," will report earnings on Monday, with expectations that rate cuts may spur economic growth despite a lackluster mid-quarter update in December [1] - Boeing and General Motors will release results on Tuesday, with Boeing shares having rallied significantly, leading to cautious expectations for further gains [2][3] - A busy earnings day on Wednesday will feature reports from Corning, Danaher, Starbucks, GE Vernova, Meta Platforms, and Microsoft, all of which are holdings in Cramer's Charitable Trust [4] Company Insights - Danaher is expected to have its first strong quarter in years due to a resurgence in biotech orders [6] - Starbucks is considered "wildly overbought," requiring exceptionally strong earnings to maintain upward momentum, but is still viewed positively for the long term [6] - Microsoft shares are under pressure due to AI-driven disruption risks, which are seen as a false concern [7] - GE Vernova's results are anticipated to be underwhelming due to high expectations, while Corning is favored for long-term growth due to AI-related benefits [5] Market Context - Honeywell will report on Thursday, with potential for a disappointing stock reaction as investors await the company's breakup later this year [8] - Apple is set to post results after eight weeks of decline, attributed to concerns over rising memory costs affecting margins, but the recommendation remains to "own it, don't trade it" [9] - The Federal Reserve's interest rate decision is expected to remain unchanged, with potential market-moving news regarding Fed Chair Jerome Powell's replacement [10]

Group 1 - The Trump administration, in collaboration with governors, has launched an initiative targeting PJM Interconnection to address rising residential utility prices driven by the AI boom, requiring tech giants to fund new power-generation projects through emergency auctions [2][8] - GE Vernova has seen a significant stock surge due to its advantageous position in providing gas turbines and grid solutions, with a 77% increase over the last year [3][8] - The company has experienced unprecedented growth, with gas power orders increasing by 50% and equipment orders more than doubling in the third quarter [5][8] Group 2 - GE Vernova's backlog and capacity commitments are growing, with 33 gigawatts (GW) of firm orders and an additional 29 GW in slot reservation agreements, allowing the company to charge higher prices for future manufacturing slots [6] - The recent initiative from the Trump administration is expected to further boost demand for GE Vernova's products, as it aims to stabilize electricity prices for households by making tech companies pay for new power plants [7]

Core Insights - GE Vernova is positioned to benefit from the cyclical growth in the energy sector, with significant stock performance compared to its peers [4] - The company operates three main segments: Power, Electrification, and Wind, with Power being the largest contributor to orders [4][5] Segment Performance - The Electrification segment is experiencing growth despite its reliance on large, irregular projects [1] - The Power segment's growth is driven by increased demand for gas turbines and recurring service revenues from plant maintenance and upgrades [2][3] - The Wind segment faced challenges due to project delays and supply chain issues but showed growth in onshore wind services in the latest quarter [6] Future Projections - GE Vernova anticipates organic revenue growth of 6%-7% for the Power segment in 2025, with expectations of 16%-18% growth in 2026 and high-teens CAGR through 2028 [7] - The Electrification segment is projected to trend toward 25% growth in 2025 and approximately 20% in 2026, also maintaining high-teens CAGR through 2028 [7] - The Wind segment is expected to see a decline in organic revenue by high single digits in 2025, with plans to right-size the business and improve margins [9] Financial Outlook - Total revenue is expected to increase from $36 billion in 2025 to $52 billion by 2028, with adjusted EBITDA margins expanding from 8% to 20% [10] - Free cash flow is projected to rise from $3.5 billion to $4.0 billion in 2025, with a cumulative total exceeding $22 billion from 2025 to 2028 [10] Valuation and Stock Performance - GE Vernova's enterprise value is $166.1 billion, trading at 31 times its projected adjusted EBITDA for 2026, which may be justified by strong growth rates [12] - If the company meets analysts' expectations for 2027, its stock could rise by more than 50% over the next 12 months, outperforming the S&P 500 [13]