GE Vernova's Q2 2025: Key Contradictions on Electrification Pricing, Power Backlog, and Tariff Impacts

Pricing trends in Electrification, backlog and order dollars in Power, tariff impact on costs, Electrification pricing trends and margin goals, and Gas Power services pricing and backlog growth are the key contradictions discussed in GE Vernova's latest 2025Q2 earnings call.



Growth in Power and Electrification:
- GE Vernova reported a 12% revenue increase in Q2 2025, driven by strong growth in its Power and Electrification segments.
- The increase was supported by new equipment orders and services demand, particularly in the Gas Power and Grid Solutions segments.

Backlog and Market Demand:
- The company's equipment backlog grew from $45 billion to $50 billion, and the services backlog increased by approximately $1 billion in Q2.
- This growth was driven by continued strength in gas power demand and increased services demand for existing fleets.

Electrification Segment Outlook:
- Electrification orders were strong, despite a 31% decrease year-over-year due to large equipment orders from the prior year.
- The segment saw solid growth in core product demand, such as synchronous condensers, driven by market trends and increased grid stabilization needs.

Wind Segment Challenges and Opportunities:
- GE Vernova's Wind segment experienced a 5% decrease in orders, attributed to lower Onshore Wind equipment orders outside North America.
- The company expects Onshore Wind orders to improve in the second half of the year due to potential benefits from the recent U.S. tax bill.