GE Vernova Inc. (GEV) reported fourth‑quarter 2025 results that surpassed expectations, with revenue of $10.96 billion—a 3.8% year‑over‑year increase—and diluted earnings per share of $13.39, beating the consensus estimate of $3.05 by $10.34. The earnings beat was largely driven by a $2.9 billion one‑time tax benefit that lifted GAAP EPS, while underlying operating performance remained robust, supported by strong demand in the Power and Electrification segments.
The company’s backlog grew to $150.2 billion, an increase of $31.2 billion (about 25%) from the prior quarter, driven by a 65% organic rise in total orders to $22.2 billion. The gas‑turbine equipment backlog in the Power segment expanded from 62 GW to 83 GW, reflecting continued momentum in large‑scale power projects.
Margin performance improved across the board. Power EBITDA margin rose to 16.9% from 14.9% in Q4 2024, while Electrification EBITDA margin climbed to 17.1% from 14.9% for the full year. The gains were driven by pricing power, a shift toward higher‑margin equipment, and disciplined cost management. The Wind segment, however, continued to post losses, underscoring a persistent headwind in that business line.
GE Vernova raised its 2026 revenue guidance to a midpoint of $44–$45 billion, up from the previous $41–$42 billion range, and increased its 2028 guidance to $56 billion. The company reaffirmed its commitment to completing the acquisition of the remaining 50% stake in Prolec GE for $5.275 billion, expected to close on February 2, 2026, and reiterated its share‑repurchase program, signaling confidence in its capital allocation strategy.
CEO Scott Strazik highlighted the company’s momentum, noting that “we delivered strong financial performance in 2025 with continued momentum in Power and Electrification while focusing on what we can control in Wind.” He also acknowledged the impact of the U.S. government’s stop‑work order on offshore wind projects, which contributed to the wind‑segment losses. CFO Ken Parks emphasized the firm’s cash position, stating that the company ended the quarter with nearly $9 billion in cash and free cash flow, enabling continued investment and shareholder returns.
Investors reacted cautiously to the results, citing the company’s high valuation, the wind‑segment headwinds, and the one‑time tax benefit that inflated EPS. The market’s tempered response reflects a focus on the sustainability of the company’s growth trajectory and the need for continued operational execution.
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