GE Vernova shares rose after it reported a huge increase in fourth quarter (Q4) and full year net income for 2025 that exceeded market expectations.
The energy industry manufacturer said net income soared to US$3.67 billion (A$5.24 billion) in the three months ended 31 December from $484 million in the previous corresponding period.
Diluted earnings per share (EPS) rose to $13.39 from $1.73 as revenue grew 4% to $10.956 billion.
For the full year, net income jumped to $4.879 billion from $1.559 billion, and diluted EPS climbed to $17.69 from $5.58 on revenue, which was 9% higher at $38.068 billion.
The company said net income was boosted by a $2.9 billion tax benefit due to a U.S. valuation allowance release.
Tariffs cost its wind business $70 million, but demand remained strong in its power and electrification units, which continue to benefit from rising electricity consumption, driven by data centres, artificial intelligence and broader electrification.
“We delivered strong financial performance in 2025 with continued momentum in Power and Electrification while focusing on what we can control in Wind,” Chief Executive Officer Scott Strazik said in a press release.
“We increased our backlog to $150 billion, with better equipment margins, and are entering 2026 with significant momentum.
“Our platform of advanced solutions is well-positioned to serve the growing, long-cycle electric power market, and there is substantial opportunity to deliver even better performance ahead.”
GE Vernova said orders increased 65% to $22.2 billion due to organic growth in all segments in Q4, and backlog growth of $15.0 billion came sequentially from equipment and services at its Power and Electrification business.
Strazik said on a conference call that the company had signed more than $2 billion of electrification orders directly tied to data centres in 2025 and expected significant backlog growth in both the power and electrification businesses in 2026.
The company increased its 2026 financial guidance and outlook by 2028, including the Prolec GE acquisition, which was expected to close on 2 February 2026.
For 2026 it expected revenue of $44-$45 billion, up from $41-$42 billion, and an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 11%-13% in 2026, and by 2028 it expected revenue of $56 billion, up from $52 billion, and adjusted EBITDA margin of 20% in 2028.
Adjusted EPS beat the consensus estimate of $3.05 due to a tax benefit, and revenue was also above expectations of $10.08 billion.
GE Vernova (NYSE: GEV) shares closed $18.99 (2.73%) higher at $711.59 on Wednesday (Thursday AEDT), capitalising the company at $193.07 billion, before rising to $714.30 in after-hours trading.
Formed when General Electric spun off its energy businesses in 2024 into a standalone publicly traded company, GE Vernova designs, manufactures, services, and supplies equipment and technologies for electricity generation, transmission, storage, and related services.
