GE Vernova : 1Q 2025 Earnings Release

Published: 2025-04-23 07:16:00 ET GEV

GE Vernova reports first quarter 2025 financial results

Strong 1Q'25 results with continued growth, margin expansion and significant cash generation

First Quarter 2025 Highlights:

CAMBRIDGE, Mass., (April 23, 2025) - GE Vernova Inc. (NYSE: GEV), a unique industry leader enabling customers to accelerate the energy transition, today reported financial results for the first quarter ending March 31, 2025.

"We delivered strong results in the first quarter and our businesses continued to execute well. We grew our equipment and services backlog, meaningfully improved margins in each segment, and are returning a significant amount of capital to shareholders," said GE Vernova CEO Scott Strazik. "Our lean culture is enabling us to deliver on accelerating global electricity demand as we prioritize safety, quality, delivery, and cost. We are well-positioned to navigate the current dynamic environment, and we remain focused on creating value for stakeholders and investing in our future. I appreciate our customers' continued trust in us and our team's dedication and I'm excited for what's ahead as we are only at the beginning of the electricity investment supercycle."

In the first quarter, GE Vernova orders of $10.2 billion increased +8% organically, driven by services growth and equipment growth in Power. Revenue of $8.0 billion was up +11%, +15% organically*, with growth in both equipment and services, and positive price, in all segments. Margins expanded significantly from more profitable volume, price, and productivity, which more than offset investments and inflation. Free cash flow* improved by $1.6 billion year-over-year, driven by higher down payments at Power and better working capital management, including improved linearity.

Power

Wind

Electrification

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Company Updates:

In the first quarter of 2025, GE Vernova:

"We had a strong start to 2025 as we continue executing our financial strategy, delivering disciplined revenue growth, margin expansion, and significant free cash flow in the first quarter. We generated positive free cash flow in the first quarter, a milestone for the GE Vernova businesses, reflecting strong down payments and working capital management resulting in further improvement in linearity," said GE Vernova CFO Ken Parks. "We executed on our commitment to return cash to shareholders through our share repurchase actions and inaugural dividend payment, while maintaining a healthy cash balance and solid investment grade balance sheet. We are encouraged by our first quarter results and are reaffirming our 2025 financial guidance."

2025 Guidance:

GE Vernova is reaffirming its 2025 financial guidance. We expect revenue of $36-$37 billion, high-single digits adjusted EBITDA margin*, free cash flow* of $2.0-$2.5 billion, and segment guidance of:

Total Company Results

Three months ended March 31

(Dollars in millions, except per share)

2025

2024

Year-on-

Year

GAAP Metrics

Total revenues

$8,032

$7,260

11 %

Net income (loss)

$264

$(106)

$370

Net income (loss) margin

3.3 %

(1.5)%

480 bps

Diluted EPS(a)

$0.91

$(0.47)

Cash from (used for) operating activities

$1,161

$(444)

$1,605

Non-GAAP Metrics

Organic revenues

$8,161

$7,077

15 %

Adjusted EBITDA

$457

$189

$268

Adjusted EBITDA margin

5.7 %

2.6 %

310 bps

Adjusted organic EBITDA margin

5.4 %

3.7 %

170 bps

Free cash flow

$975

$(661)

$1,636

*Non-GAAP Financial Measure

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Results by Reporting Segment

The following segment discussions and variance explanations are intended to reflect management's view of the relevant

comparisons of financial results.

Power

Three months ended March 31

(Dollars in millions)

2025

2024

Year-on-Year

Orders

$6,247

$5,029

24 %

Revenues

$4,423

$4,035

10 %

Cost of revenues(a)

$3,369

$3,136

Selling, general, and administrative expenses(a)

$454

$516

Research and development expenses(a)

$104

$80

Other segment (income)/expenses(b)

$(13)

$(42)

Segment EBITDA

$508

$345

$163

Segment EBITDA margin

11.5 %

8.6 %

290 bps

First Quarter 2025 Performance:

Orders of $6.2 billion increased +28% organically, led by Gas Power equipment with 29 heavy-duty units, including 8 HA units, and services. Services orders increased +18% organically, primarily driven by Gas Power and Steam Power. Revenues of $4.4 billion increased +10%, +16% organically*, led by HA deliveries and services growth. Segment EBITDA was $0.5 billion and segment EBITDA margin was 11.5%, up +290 basis points, +70 basis points organically*, with productivity, price, and volume more than offsetting inflation and additional expenses to support investments in Nuclear Power and Gas Power.

Wind

Three months ended March 31

(Dollars in millions)

2025

2024

Year-on-Year

Orders

$640

$1,150

(44)%

Revenues

$1,850

$1,639

13 %

Cost of revenues(a)

$1,840

$1,610

Selling, general, and administrative expenses(a)

$134

$147

Research and development expenses(a)

$33

$62

Other segment (income)/expenses(b)

$(11)

$(7)

Segment EBITDA

$(146)

$(173)

$27

Segment EBITDA margin

(7.9)%

(10.6)%

270 bps

First Quarter 2025 Performance:

Orders of $0.6 billion decreased (43)% organically, driven by lower Onshore Wind equipment in the U.S. Revenues of $1.8 billion increased +13%, +15% organically*, driven by higher Onshore Wind equipment deliveries and price, partially offset by Offshore Wind. Segment EBITDA was $(0.1) billion and segment EBITDA margin was (7.9)%, up +270 basis points, +190 basis points organically*, with improved losses from more profitable Onshore Wind equipment. This improvement offset increased Onshore Wind costs due to investments to improve fleet performance and increased Offshore Wind losses from a one-time termination of a supply agreement.

*Non-GAAP Financial Measure

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Electrification

Three months ended March 31

(Dollars in millions)

2025

2024

Year-on-Year

Orders

$3,393

$3,571

(5)%

Revenues

$1,879

$1,651

14 %

Cost of revenues(a)

$1,283

$1,195

Selling, general, and administrative expenses(a)

$344

$330

Research and development expenses(a)

$87

Other segment (income)/expenses(b)

$(49)

$(27)

Segment EBITDA

$214

$66

$148

Segment EBITDA margin

11.4 %

4.0 %

740 bps

First Quarter 2025 Performance:

Orders of $3.4 billion decreased (3)% organically, due to a large HVDC order in the first quarter of 2024. Strong demand continued for grid equipment, particularly in North America and Asia. Revenues of $1.9 billion grew +14%, +18% organically*, with growth across all businesses, primarily at Grid Solutions due to growth in switchgear and transformer volume. Segment EBITDA was $0.2 billion and segment EBITDA margin was 11.4%, up +740 basis points, +680 basis points organically*, due to volume, productivity, and price.

*Non-GAAP Financial Measure

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Non-GAAP Financial Measures

The non-GAAP financial measures presented in this press release are supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition and operating results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see our results "through the eyes of management." We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for financial, operational, and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable U.S. GAAP financial measures follow. Unless otherwise noted, tables are presented in U.S. dollars in millions, except for per-share amounts which are presented in U.S. dollars. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from the underlying numbers in millions.

We believe the organic measures presented below provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends.

ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)

Revenue(a)

Segment EBITDA

Segment EBITDA margin

Three months ended March 31

2025

2024

2025

2024

2025

2024

V bps

Power (GAAP)

$4,423

$4,035

10%

$508

$345

47%

11.5%

8.6%

290 bps

Less: Acquisitions

Less: Business dispositions

182

(20)

Less: Foreign currency effect

(27)

(36)

Power organic (Non-GAAP)

$4,449

$3,851

16%

$493

$401

23%

11.1%

10.4%

70 bps

Wind (GAAP)

$1,850

$1,639

13 %

$(146)

$(173)

16%

(7.9)% (10.6)%

270 bps

Less: Acquisitions

Less: Business dispositions

Less: Foreign currency effect

(36)

(7)

(14)

Wind organic (Non-GAAP)

$1,886

$1,646

15 %

$(148)

$(159)

(7.8)% (9.7)%

190 bps

Electrification (GAAP)

$1,879

$1,651

14%

$214

$66

11.4 %

4.0 %

740 bps

Less: Acquisitions

Less: Business dispositions

Less: Foreign currency effect

(66)

(2)

(7)

Electrification organic (Non-GAAP)

$1,945

$1,645

18%

$217

$73

11.2 %

4.4 %

680 bps

(a) Includes intersegment sales of $126 million and $78 million for the three months ended March 31, 2025 and 2024, respectively.

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Three months ended March 31

ORGANIC REVENUES (NON-GAAP)

2025

2024

Total revenues (GAAP)

8,032

7,260

11 %

Less: Acquisitions

Less: Business dispositions

182

Less: Foreign currency effect

(129)

Organic revenues (Non-GAAP)

8,161

7,077

15 %

Three months ended March 31

EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP)

2025

2024

Total equipment revenues (GAAP)

4,197

3,617

16 %

Less: Acquisitions

Less: Business dispositions

105

Less: Foreign currency effect

(99)

Equipment organic revenues (Non-GAAP)

4,296

3,512

22 %

Total services revenues (GAAP)

3,835

3,642

5 %

Less: Acquisitions

Less: Business dispositions

Less: Foreign currency effect

(31)

Services organic revenues (Non-GAAP)

3,865

3,565

8 %

We believe that Adjusted EBITDA* and Adjusted EBITDA margin*, which are adjusted to exclude the effects of unique and/or non-cash items that are not closely associated with ongoing operations provide management and investors with meaningful measures of our performance that increase the period-to-period comparability by highlighting the results from ongoing operations and the underlying profitability factors. We believe Adjusted organic EBITDA* and Adjusted organic EBITDA margin* provide management and investors with, when considered with Adjusted EBITDA* and Adjusted EBITDA margin*, a more complete understanding of underlying operating results and trends of established, ongoing operations by further excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends.

We believe these measures provide additional insight into how our businesses are performing, on a normalized basis. However, Adjusted EBITDA*, Adjusted organic EBITDA*, Adjusted EBITDA margin* and Adjusted organic EBITDA margin* should not be construed as inferring that our future results will be unaffected by the items for which the measures adjust.

*Non-GAAP Financial Measure

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Three months ended March 31

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (NON-GAAP)

2025

2024

Net income (loss) (GAAP)

264

(106)

Add: Restructuring and other charges

148

Add: (Gains) losses on purchases and sales of business interests

(19)

Add: Separation costs (benefits)(a)

Add: Non-operating benefit income

(115)

(134)

Add: Depreciation and amortization(b)

203

209

Add: Interest and other financial (income) charges - net(c)(d)

(55)

Add: Provision (benefit) for income taxes(d)

Adjusted EBITDA (Non-GAAP)

457

189

Net income (loss) margin (GAAP)

3.3 %

(1.5)%

480 bps

Adjusted EBITDA margin (Non-GAAP)

5.7 %

2.6 %

310 bps

Three months ended March 31

ADJUSTED ORGANIC EBITDA AND ADJUSTED ORGANIC EBITDA MARGIN (NON-GAAP)

2025

2024

Adjusted EBITDA (Non-GAAP)

457

189

Less: Acquisitions

Less: Business dispositions

(20)

Less: Foreign currency effect

(52)

Adjusted organic EBITDA (Non-GAAP)

439

261

68 %

Adjusted EBITDA margin (Non-GAAP)

5.7 %

2.6 %

310 bps

Adjusted organic EBITDA margin (Non-GAAP)

5.4 %

3.7 %

170 bps

We believe that free cash flow* provides management and investors with an important measure of our ability to generate cash on a normalized basis. Free cash flow* also provides insight into our ability to produce cash subsequent to fulfilling our capital obligations; however, free cash flow* does not delineate funds available for discretionary uses as it does not deduct the payments required for certain investing and financing activities.

Three months ended March 31

FREE CASH FLOW (NON-GAAP)

2025

2024

Cash from (used for) operating activities (GAAP)

1,161

(444)

Add: Gross additions to property, plant and equipment and internal-use software

(186)

(217)

Free cash flow (Non-GAAP)

975

(661)

2025 GUIDANCE: FREE CASH FLOW (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP financial measure expectations and the corresponding GAAP financial measure for free cash flow* in the 2025 guidance without unreasonable effort due to the uncertainty of timing for capital expenditures.

*Non-GAAP Financial Measure

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CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "guidance", "will", "may," and negatives or derivatives of these or similar expressions. These forward-looking statements include, among others, statements about the benefits we expect from our lean operating model; our expectations regarding the energy transition; the demand for our products and services; our ability to navigate the current dynamic environment; the estimated impact of tariffs; our expectations of future increased business, revenues, and operating results; our ability to innovate and anticipate and address customer demands; our ability to increase production capacity, efficiencies, and quality; our underwriting and risk management; current and future customer orders and projects; our actual and planned investments; our expected cash generation and management; our capital allocation framework, including share repurchases and dividends; operational safety; our restructuring programs and strategies to reduce operational costs; and our credit ratings.

Forward-looking statements reflect our current expectations, are based on judgments and assumptions, are inherently uncertain and are subject to risks, uncertainties, and other factors, which could cause our actual results, performance, or achievements to differ materially from current expectations. Some of the risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by forward-looking statements include the following:

These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements, and these and other factors are more fully discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, and in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of

Operation" sections included therein, as may be updated from time to time in our SEC filings and as posted on our

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website at www.gevernova.com/investors/fls. We do not undertake any obligation to update or revise our forward-looking statements except as may be required by law or regulation. This press release also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.

Additional Information

GE Vernova's website at https://www.gevernova.com/investors contains a significant amount of information about GE Vernova, including financial and other information for investors. GE Vernova encourages investors to visit this website from time to time, as information is updated, and new information is posted. Investors are also encouraged to visit GE Vernova's LinkedIn and other social media accounts, which are platforms on which the Company posts information from time to time.

Additional Financial Information

Additional financial information can be found on the Company's website at: www.gevernova.com/investors under Reports and Filings.

Conference Call and Webcast Information

GE Vernova will discuss its results during its investor conference call today starting at 7:30 AM Eastern Time. The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation containing financial information can be accessed by visiting the investor section of the website https://www.gevernova.com/investors. An archived version of the webcast will be available on the website after the call.

About GE Vernova

GE Vernova Inc. (NYSE: GEV) is a purpose-built global energy company that includes Power, Wind, and Electrification segments and is supported by its accelerator businesses. Building on over 130 years of experience tackling the world's challenges, GE Vernova is uniquely positioned to help lead the energy transition by continuing to electrify the world while simultaneously working to decarbonize it. GE Vernova helps customers power economies and deliver electricity that is vital to health, safety, security, and improved quality of life. GE Vernova is headquartered in Cambridge, Massachusetts, U.S., with approximately 75,000 employees across approximately 100 countries around the world. Supported by the Company's purpose, The Energy to Change the World, GE Vernova technology helps deliver a more affordable, reliable, sustainable, and secure energy future. Learn more: GE Vernovaand LinkedIn.

Investor Relations Contact: Michael Lapides +1.617.674.7568 [email protected]

Media Contact: Adam Tucker +1.518.227.2463 [email protected]

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Disclaimer

GE Vernova Inc. published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2025 at 11:13 UTC.