GE Vernova saw major revenue growth last quarter amid strong demand for its Power segment, beating estimates.
Diluted earnings per share were US$1.86, passing Zacks estimates of $1.60. Revenue rose 11% to $9.11 billion, 3.26% above estimates.
“GE Vernova had a productive second quarter, positioning us well to continue to accelerate our growth and margin expansion from here. We grew our backlog by more than US$5 billion and increased our Gas equipment backlog and slot reservation agreements from 50 to 55 gigawatts,” said GE Vernova CEO Scott Strazik.
“We are at the beginning of an investment supercycle into more reliable baseload power, grid infrastructure and decarbonization solutions. Our near-term results are improving, but more importantly, our long-term potential is accelerating faster.”
GE Vernova saw US$12.4 billion in orders last quarter, up 4% year-over-year. Adjusted EBITDA rose $246 million to $770 million, with a margin of 8.5%.
Its Power segment reported a 42% increase in orders, reaching US$7.09 billion as Gas Power equipment orders nearly tripled. The segment’s EBITDA increased to $778 million, rising by $164 million year-over-year.
Electrification posted a 31% slump in orders to US3.34 billion, which GE Vernova said was due to high-value large equipment orders last year. Segment EBITDA more than doubled to $322 million.
Orders for its Wind segment dropped by 4% year-over-year to US$2.06 billion, with Onshore Wind equipment orders declining outside North America. EBITDA fell by $49 million to a loss of $165 million.
GE Vernova’s free cash flow was US$194 million, down from $821 million one year ago. This was partly due to a nonrecurring arbitration refund given in 2024’s second quarter, the company said.
The company now expects its 2025 revenue to be towards the higher end of its previously projected US$36-37 billion. GE Vernova predicts an adjusted EBITDA margin of 8-9%, up from its former guidance of mid-single digits.
It also said this week that it would acquire France-based artificial intelligence company Alteia. GE Vernova will integrate Alteia’s AI visual intelligence technology into its electric grid visualisation software for utility providers.
GE Vernova’s (NYSE: GEV) share price closed at US$629.03, up around 14.6% from its previous close at $548.99. Its market capitalisation is $171.68 billion.
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