CAMBRIDGE, Mass. – GE Vernova Inc. 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
- Orders of $6.2 billion increased +28% organically from strong demand for Gas Power equipment and +18% services growth. Revenues of $4.4 billion increased +10%, +16% organically*, led by Gas Power. Segment EBITDA margin grew +290 basis points, +70 basis points organically*.
- Signed 7 gigawatts of gas turbine orders, raising our Gas Power equipment backlog to 29 gigawatts; secured another 7 gigawatts of gas turbine slot reservation agreements, with 21 gigawatts now reserved and not yet in backlog.
Wind
- Orders of $0.6 billion decreased (43)% organically, driven by Onshore Wind equipment. Revenues of $1.8 billion increased 13%, +15% organically*, primarily driven by higher Onshore Wind deliveries. Segment EBITDA margin grew +270 basis points, +190 basis points organically*.
- Invested more than $100 million to improve performance of the ~57,000 wind turbine installed base and agreed to a termination of the last remaining Offshore Wind supply agreement, other than two projects in execution.
Electrification
- Orders of $3.4 billion decreased (3)% organically, given a large HVDC order in the first quarter of last year, with continued strong demand for grid equipment. Revenues of $1.9 billion increased +14%, +18% organically*, led by Grid Solutions. Segment EBITDA margin grew +740 basis points, +680 basis points organically*.
- Strong year-over-year equipment orders growth in North America, +44%, and Asia, +92%; $2 billion in sequential equipment backlog growth.
In the first quarter of 2025, GE Vernova:
- Experienced three fatalities; remains committed to achieving and sustaining fatality-free operations.
- Repurchased approximately 4 million shares for $1.2 billion in the first quarter and approximately 1 million shares for $0.3 billion from April 1 to April 17, 2025, at a total year-to-date average price of $299.
- Paid its first $0.25 per share quarterly dividend; on April 8, declared a $0.25 per share second quarter dividend, payable on May 16, 2025 to stockholders of record as of April 18, 2025.
- On March 12, 2025, Fitch Ratings issued a revised GE Vernova outlook for its investment grade credit rating of BBB, moving it from Stable to Positive.
- Monetized just under 2% ownership stake in China XD Electric Co Ltd., resulting in approximately $0.1 billion of pretax proceeds.
- Completed the acquisition of the gas turbine combustion parts business from Woodward, Inc., strengthening the Power segment’s U.S. supply chain.
- Invested $0.2 billion in capital expenditures, including initiatives to expand capacity in Power and Electrification, as part of its commitment to invest $4 billion in capex through 2028; announced plans to invest almost $0.6 billion in U.S. factories and facilities over the next two years.
- Funded $0.2 billion in research and development (R&D) spending, to advance breakthrough energy transition technologies, as part of its commitment to invest $5 billion in R&D through 2028.
“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:
- Power: Mid-single digit organic revenue* growth and 13%-14% segment EBITDA margin.
- Wind: Organic revenue* down mid-single digits and $200-$400 million of segment EBITDA losses.
- Electrification: Mid-to-high-teens organic revenue* growth and 11%-13% segment EBITDA margin.
The guidance includes the impact of tariffs as currently outlined and resulting inflation, which is estimated to be approximately $300-$400 million, net of mitigating actions.
Full results can be found here.
___