Financial Data and Key Metrics Changes - GE Vernova has a strong balance sheet with over $8 billion in cash and no debt, positioning the company well for growth [6] - The power business is expected to maintain EBITDA margins of 13-14% this year, with a floor of 16% by 2028, excluding new pricing trends [31][32] Business Line Data and Key Metrics Changes - The gas business is experiencing strong demand, with a backlog of 50 gigawatts, expected to grow to at least 60 gigawatts by the end of the year [69] - The electrification segment is the fastest-growing business, projected to surpass wind in revenue size within the next year [22] - Wind business currently has the softest market, but operational improvements are being made to enhance service offerings [18][50] Market Data and Key Metrics Changes - The demand for gas equipment is strong globally, particularly in Asia and the Middle East, with significant opportunities in countries like Saudi Arabia [24][64] - The European market is facing affordability challenges, impacting pricing dynamics in the grid business [44] Company Strategy and Development Direction - GE Vernova aims to leverage its unique position in the market, focusing on the electrification of the grid and the integration of various energy sources [5][20] - The company is committed to investing in R&D, with a 25% increase in the budget to support future growth [74] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the growth potential in the electrification market and the role of gas and nuclear in the energy transition [12][54] - The geopolitical landscape is seen as an opportunity for GE Vernova to address trade imbalances and strengthen its market position [62] Other Important Information - The company is actively working on carbon capture technologies and low-carbon hydrogen solutions to support energy transition goals [57][59] - GE Vernova is focusing on improving operational efficiencies within its existing manufacturing footprint to meet growing demand without overextending capacity [29][72] Q&A Session Summary Question: Are GE Vernova and/or competitors requiring reservation fees for gas turbine orders? If so, how meaningful are the fees? - GE Vernova requires an average of 20% of the gas turbine contract price as a deposit for slot reservation agreements [56] Question: What are GE Vernova's key opportunities and innovations in carbon capture and low carbon hydrogen? - The company is investing in direct air capture technology and building a new gas plant in the UK with carbon capture capabilities [57][58] Question: How is GE Vernova dealing with tariff impacts? - The company is implementing cost reduction measures and negotiating contractual provisions to manage tariff risks effectively [37][40] Question: How does GE Vernova view its competitive positioning in HVDC within the grid? - The equipment backlog in the grid business has grown significantly, with a focus on HVDC projects in North America [60][61] Question: Following new deals in the GCC, is the region becoming more important for GE Vernova? - The Middle East is strategically important for data centers and chip manufacturing, with significant opportunities for GE Vernova [64][65]
GE Vernova Inc.(GEV) - 2025 FY - Earnings Call Transcript