What were the key takeaways from GE Vernova's earnings call?

What is the market's earnings forecast for GE Vernova next quarter?

What is the revenue and EPS growth rate for GE Vernova year over year?

What is GE Vernova's latest dividend and current dividend yield?

Did GE Vernova beat or miss consensus estimates last quarter?

What were the key takeaways from GE Vernova’s earnings call?

What factors drove the changes in GE Vernova's revenue and profit?

What does GE Vernova do and what are its main business segments?

- **$5.275B Prolec GE Acquisition**: Immediately accretive with $3B+ 2025 revenue, 25% EBITDA margin, and $4B+ 2028 target. 30%+ CAGR in hyperscaler business.
- **Electrification Growth**: 32% Q3 revenue growth, $26B backlog, 15.1% EBITDA margin. 2025 revenue now expected +25% vs prior 20% guide.
- **Gas Turbine Momentum**: 12GW Q3 contracts, 33GW backlog. Slot reservations at higher margins than current orders.
- **Free Cash Flow Strength**: $730M Q3, $8B cash, $2.2B returned to shareholders YTD.
- **AI/automation Impact**: 40%+ productivity gains in key factories, accelerating 2026 delivery ramp.
- **Wind Transition**: Services up 27% YTD, offsetting soft onshore equipment orders.

**【CEO Summary Section】**
- Announced acquisition of remaining 50% stake in Prolec GE for $5.275 billion, to be funded 50% by cash and 50% by debt, closing by mid-2026.
- Prolec GE is a leading North American transformer provider with $3 billion in 2025 revenue, 25% EBITDA margin, and 10,000 employees across 7 U.S. and Mexico facilities.
- Transaction is immediately accretive to EBITDA before synergies, with $3 billion+ revenue in 2025 and $4 billion+ by 2028, driven by North American grid investment and hyperscaler demand.
- Electrification segment revenue grew 32% Q3, with $26 billion equipment backlog, and 15.1% EBITDA margin.
- Signed 12 GW of new gas turbine contracts Q3, bringing total backlog to 33 GW, with 29 GW in slot reservations.
- Onshore wind services orders up 27% YTD, while offshore wind EBITDA losses improved $250 million Y/Y.

**【CFO Financial Commentary】**
- Prolec GE expected to generate $1 billion+ EBITDA by 2028, with $60-120 million annualized cost synergies and medium-term revenue synergies from integrating transformers with grid automation.
- GE Vernova Q3 revenue grew 10% organically to $9.1 billion, with adjusted EBITDA of $811 million (8.9% margin), up 600 bps Y/Y.
- Free cash flow of $730 million Q3, with $8 billion cash balance and $2.2 billion returned to shareholders YTD via buybacks and dividends.
- 2025 guidance reaffirmed: $36-37 billion revenue, 8-9% EBITDA margin, $3-3.5 billion free cash flow.
- Electrification segment now expected to grow 25%+ in 2025, up from prior 20% guidance, with EBITDA margin 14-15%.

**【Q&A Highlights】**
- Prolec GE 2028 financial targets ($4 billion revenue, $1 billion EBITDA) based on $4 billion backlog, framework agreements, and 30%+ CAGR in hyperscaler business.
- Gas turbine pricing remains strong, with slot reservation agreements at higher margins than current orders.
- Capacity expansion for gas turbines ($300 million+ in 2025) and transformers (Mexico, Louisiana, NC expansions) positions for 2026 peak deliveries.
- AI and physical automation investments driving 40%+ productivity gains in key factories (e.g., Stafford, UK for HVDC).
- Prolec GE medium/low voltage transformers could expand into international markets post-2026 integration.
- Wind business focus shifting to services (repowering, upgrades) as onshore equipment orders remain soft due to permitting delays.
- 2025 tariffs estimated at $300-400 million, net of mitigation actions, with similar impact across remaining quarters.

GE Vernova Inc. (GEV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GEV

GEV fundamentals

You can ask Aime