GE Vernova Inc. Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Key Takeaways

  • Record year with strong orders across Power and Electrification; Wind continues to face challenges due to U.S. offshore delays.
  • Total backlog grew more than 25% year-over-year to $150 billion (up $31 billion from 2024).
  • Company raised 2026 guidance and expanded long-term (2028) outlook, now including Prolec GE results.
  • Significant margin expansion, especially in Power and Electrification; Wind remained loss-making driven by offshore issues.
  • Large step-up in equipment backlog margin—adding $8 billion of margin dollars in 2025, more than the prior two years combined.

Financial Results vs. Prior Year

  • Orders: $59 billion, up 34% year-over-year.
  • Revenue: $38 billion, up 9% year-over-year.
  • Adjusted EBITDA: +46% year-over-year; margin +210 basis points.
  • Free cash flow: $3.7 billion, up from $1.7 billion in 2024.
  • Cash balance ended at $9 billion.

Segment Performance

Power
  • 2025 orders up more than 50%; backlog up over $20 billion.
  • Strong global demand for gas turbines with 41 heavy-duty units booked in Q4 (70% increase year-over-year).
  • Revenue up 10% year-over-year.
  • EBITDA margin increased 100 bps to 14.7% for full year; Q4 margin reached 16.9%.
  • Backlog margins expanded 11 points year-over-year; 17-point cumulative increase vs. 2022.

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Operator: Good day, ladies and gentlemen, and welcome to GE Vernova's Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] My name is Liz, and I will be your conference coordinator today. [Operator Instructions] As a reminder, this conference is being recorded. I'd 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: Welcome to GE Vernova's Fourth 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 press release and presentation slides, both of which are available on our website. Please note that our 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. In addition, our 2026 guidance and our by 2028 outlook being presented today include the Prolec GE acquisition. 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 may differ materially due to risks and uncertainties. Wi

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