Today, GE Vernova released its second quarter 2025 financial results. We had a strong quarter, with continued growth, margin expansion, increasing backlog, and positive cash flow. We are raising our 2025 financial guidance based on our strong first half execution and momentum in our Power and Electrification segments.
We encourage you to review the earnings materials and listen to our earnings call beginning at 7:30 AM ET. A replay of the webcast will be available on our website at https://www.gevernova.com/investors.
Second quarter 2025 highlights:
- Orders of $12.4B, +4% organically; continued strong demand at Power and Electrification
- Backlog[1] growth of $5.2B sequentially from equipment and services
- Gas Power equipment backlog and slot reservation agreements grew from 50 to 55 GW
- Revenue of $9.1B, +11%, +12% organically* with growth in both equipment and services
- Net income of $0.5B; net income margin of 5.4%
- Adjusted EBITDA* of $0.8B and adjusted EBITDA margin* of 8.5%
- Cash from operating activities of $0.4B; free cash flow* of $0.2B
- $7.9B cash balance; $1.7B in capital returned to shareholders year-to-date
GE Vernova CEO Scott Strazik said, “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 $5 billion and increased our Gas equipment backlog and slot reservation agreements from 50 to 55 gigawatts. With strength in Power and Electrification, we are raising our revenue, adjusted EBITDA margin, and free cash flow expectations for the year. 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 CFO Ken Parks said, “We had a strong first half of 2025 as we continued executing our financial strategy. We are delivering disciplined revenue growth, margin expansion, and positive free cash flow from stronger earnings, down payments and working capital management, resulting in further improvement in linearity. Our accelerated cost transformation efforts will position us for continued improvement in our performance. We executed on our commitment to return cash to shareholders through our share repurchase actions and quarterly dividend payment, while maintaining a healthy cash balance and solid investment grade balance sheet. Based on our performance, we are now trending towards the higher end of our 2025 revenue guidance and have increased our expectations for adjusted EBITDA margin and free cash flow.”
GE Vernova 2025 financial guidance:
We are raising our full-year 2025 GE Vernova financial guidance. GE Vernova now expects revenue to trend towards the higher end of $36-$37 billion; adjusted EBITDA margin* of 8%-9%, raising the low end of the previous guidance of high-single digits; and free cash flow* of $3.0-$3.5 billion, up from $2.0-$2.5 billion. The guidance includes the impact of tariffs as currently outlined and resulting inflation, which is now estimated to be trending toward the lower end of approximately $300-$400 million, net of mitigating actions.
We are encouraged by our strong first-half 2025 performance as we are meeting growing demand with disciplined execution. To stay in touch with future GE Vernova releases, please visit our website and sign up for email alerts. We thank you for your interest in GE Vernova and look forward to connecting with you in the third quarter.
Best,
Michael & team
1Defined as remaining performance obligation (RPO)
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our second quarter 2025 earnings release and presentation slides posted on our Investor Relations website at https://www.gevernova.com/investors.
This document contains forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions. Words such as “expects,” “intends,” “plans,” and similar expressions, may identify such forward-looking statements. Except as required by law, we disclaim any obligation to update any forward-looking statements.