GE Vernova Inc. Q1 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • GE Vernova delivered strong Q1 2025 results with significant year-over-year improvements in revenue, adjusted EBITDA, and free cash flow.
  • Total orders: $10.2 billion, up 8% vs. Q1 2024.
  • Revenue: up 15% year-over-year, driven by growth in all segments.
  • Adjusted EBITDA: $1.7 billion, up nearly 70% year-over-year; margin expanded 170 bps.
  • Free cash flow: $1 billion, an improvement of $1.6 billion vs. Q1 2024.
  • Total backlog now $123 billion, supported by sequential increases in both equipment and services.
  • Company reaffirmed full-year 2025 guidance despite tariff-related cost pressures.

Key Financial & Operational Drivers

  • Strong global demand for electrification, gas power, grid upgrades, and decarbonization solutions.
  • Tariff-related inflation expected to increase costs by $300 to $400 million in 2025, but GE Vernova is pursuing mitigation through pricing, G&A reductions, and supply chain adjustments.
  • Free cash flow benefited from down payments, improved linearity, and better working capital management.
  • GE Vernova returned $1.5 billion to shareholders so far in 2025, repurchasing 5 million shares at an average of $299.

Segment Performance

Power

  • Orders up 28%; gas equipment orders up more than 30% year-over-year.
  • Booked 29 heavy-duty gas turbines vs. ~15 in Q1 2024.

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Operator: Good day, ladies and gentlemen, and welcome to GE Vernova's First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. My name is Liz, and I will be your conference coordinator today. If you experience issues with the webcast slides refreshing or there appear delays in the slide advancement, please hit F5 on your keyboard to refresh. As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Michael Lapides, Vice President of Investor Relations. Please proceed. Michael Lapides: Thank you. Welcome to GE Vernova's First Quarter 2025 earnings call. I'm joined today by our CEO, Scott Strazik, and CFO, Ken Parks. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's Form 10-Q, press release, and presentation slides, all of which are available on our website. Please note that year-over-year commentary or variances on orders, revenue, adjusted and segment EBITDA, and margin, discussed during our prepared remarks are on an organic basis unless otherwise specified. We will make forward-looking statements about our performance. These statements are based on how we see things today. While we may elect to update these forward-looking statements at some point in the future, we do not undertake any obligation to do so. As described in our SEC filings, actual results

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