GE Vernova (GEV) delivered a standout second-quarter performance, posting stronger-than-expected earnings and raising its full-year outlook across multiple financial metrics.
Fueled by surging demand for power infrastructure and grid modernization, the energy technology company saw its shares jump nearly 15% to an all-time high—continuing a meteoric rise that has seen the stock nearly triple since its 2024 spinoff from General Electric.
Earnings Smash Expectations as Power and Grid Orders Surge
GE Vernova reported adjusted earnings per share of $1.86 on $9.1 billion in revenue for the second quarter—well above Wall Street expectations of $1.51 EPS on $8.8 billion in sales. Revenue rose 11% year-over-year, or 12% organically, marking another quarter of accelerating growth. Orders were even stronger, totaling $12.4 billion, outpacing revenue and reflecting solid momentum across business segments.
The Power segment led the charge, with orders up 44% organically to $7.1 billion, and revenue climbing nearly 7% to $4.76 billion. Profitability also improved sharply—EBITDA margin expanded 260 basis points to 16.2%, supported by volume growth, favorable pricing, and improved productivity. A key highlight: a major gas turbine deal with Japan's Nanko power station, showcasing international demand for reliable energy equipment.
Electrification saw similarly impressive growth, with revenue up 23% to $2.2 billion, driven by booming demand for high-voltage transmission solutions. That segment’s EBITDA margin nearly doubled to 14.6%, helped by higher volume and operational efficiency. Together, these divisions highlight GE Vernova’s strength as global electrification efforts ramp up in both developed and emerging markets.
GE Vernova reported adjusted earnings per share of $1.86 on $9.1 billion in revenue for the second quarter—well above Wall Street expectations of $1.51 EPS on $8.8 billion in sales. Revenue rose 11% year-over-year, or 12% organically, marking another quarter of accelerating growth. Orders were even stronger, totaling $12.4 billion, outpacing revenue and reflecting solid momentum across business segments.
The Power segment led the charge, with orders up 44% organically to $7.1 billion, and revenue climbing nearly 7% to $4.76 billion. Profitability also improved sharply—EBITDA margin expanded 260 basis points to 16.2%, supported by volume growth, favorable pricing, and improved productivity. A key highlight: a major gas turbine deal with Japan's Nanko power station, showcasing international demand for reliable energy equipment.
Electrification saw similarly impressive growth, with revenue up 23% to $2.2 billion, driven by booming demand for high-voltage transmission solutions. That segment’s EBITDA margin nearly doubled to 14.6%, helped by higher volume and operational efficiency. Together, these divisions highlight GE Vernova’s strength as global electrification efforts ramp up in both developed and emerging markets.
Company Ups Guidance and Cash Flow Forecast Despite Tariff Pressures
Riding the wave of its strong results, GE Vernova raised its 2025 revenue forecast to the top end of its prior $36–$37 billion range. It also lifted adjusted EBITDA margin expectations to between 8% and 9%—signaling stronger operating leverage—and boosted its full-year free cash flow forecast to $3.0–$3.5 billion, up sharply from $2.0–$2.5 billion.
Tariff-related costs, driven largely by shifting U.S. trade policies, are still expected to dent full-year earnings by $300 to $400 million. But management reiterated that the impact is already baked into current guidance. Analysts welcomed the new cash flow outlook as a "positive surprise," noting that a 44% upward revision at the midpoint reflects growing confidence in execution and demand.
The company’s backlog surged by $5.2 billion in the quarter, reaching $128.7 billion. Notably, 9 gigawatts of new gas turbine contracts were signed in Q2 alone, with customers already booking equipment for 2029—underscoring the multi-year nature of the current investment cycle in global power infrastructure.
Riding the wave of its strong results, GE Vernova raised its 2025 revenue forecast to the top end of its prior $36–$37 billion range. It also lifted adjusted EBITDA margin expectations to between 8% and 9%—signaling stronger operating leverage—and boosted its full-year free cash flow forecast to $3.0–$3.5 billion, up sharply from $2.0–$2.5 billion.
Tariff-related costs, driven largely by shifting U.S. trade policies, are still expected to dent full-year earnings by $300 to $400 million. But management reiterated that the impact is already baked into current guidance. Analysts welcomed the new cash flow outlook as a "positive surprise," noting that a 44% upward revision at the midpoint reflects growing confidence in execution and demand.
The company’s backlog surged by $5.2 billion in the quarter, reaching $128.7 billion. Notably, 9 gigawatts of new gas turbine contracts were signed in Q2 alone, with customers already booking equipment for 2029—underscoring the multi-year nature of the current investment cycle in global power infrastructure.
Wind Segment Lags, But Investment Cycle Fuels Long-Term Optimism
Despite broad-based strength, GE Vernova’s Wind segment continued to struggle. Segment revenue rose 9% to $2.2 billion, but EBITDA losses deepened to $165 million. Tariffs, cost inflation, and lingering issues in offshore wind—including manufacturing challenges and declining policy support—continue to weigh on margins.
Still, management sees reasons for cautious optimism. The company invested over $100 million to improve the performance of its installed base of roughly 57,000 wind turbines, while expecting onshore wind margins to improve to high single digits by year-end. With the recent phase-out of U.S. wind tax credits set to trigger a near-term rush in orders, GE Vernova is positioning itself to capitalize on one last surge in demand before incentives decline.
CEO Scott Strazik characterized the current climate as an “investment supercycle” in energy infrastructure, driven by rising electricity demand from data centers, electrification, and decarbonization efforts worldwide. Profit margins in the Power and Electrification divisions already exceed long-term targets, and the company plans to revise its 2028 financial goals later this year.
Conclusion
GE Vernova’s second-quarter results reinforced its status as a key beneficiary of the global energy transition. While its wind business remains a drag, strong execution in gas power and electrification—combined with upward revisions to earnings, revenue, and cash flow forecasts—make a compelling case for continued momentum. As power demand accelerates alongside AI and digital infrastructure growth, GE Vernova is proving to be an essential supplier in an increasingly electrified world.
Despite broad-based strength, GE Vernova’s Wind segment continued to struggle. Segment revenue rose 9% to $2.2 billion, but EBITDA losses deepened to $165 million. Tariffs, cost inflation, and lingering issues in offshore wind—including manufacturing challenges and declining policy support—continue to weigh on margins.
Still, management sees reasons for cautious optimism. The company invested over $100 million to improve the performance of its installed base of roughly 57,000 wind turbines, while expecting onshore wind margins to improve to high single digits by year-end. With the recent phase-out of U.S. wind tax credits set to trigger a near-term rush in orders, GE Vernova is positioning itself to capitalize on one last surge in demand before incentives decline.
CEO Scott Strazik characterized the current climate as an “investment supercycle” in energy infrastructure, driven by rising electricity demand from data centers, electrification, and decarbonization efforts worldwide. Profit margins in the Power and Electrification divisions already exceed long-term targets, and the company plans to revise its 2028 financial goals later this year.
Conclusion
GE Vernova’s second-quarter results reinforced its status as a key beneficiary of the global energy transition. While its wind business remains a drag, strong execution in gas power and electrification—combined with upward revisions to earnings, revenue, and cash flow forecasts—make a compelling case for continued momentum. As power demand accelerates alongside AI and digital infrastructure growth, GE Vernova is proving to be an essential supplier in an increasingly electrified world.
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