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GE Vernova Inc.

GEV
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Business Summary

GE Vernova Inc. is a global leader in the electric power industry, with products and services that generate, transfer, orchestrate, convert, and store electricity. The company's installed base generates approximately 25% of the world's electricity. The industry is shaped by trends including demand growth for electricity generation, decarbonization, an evolving generation mix shifting from coal to zero- or low-carbon sources, energy resilience and security concerns, grid modernization and investment, regulatory and policy changes, and financial and investment dynamics. GE Vernova positions itself as a purpose-built company to help accelerate the energy transition while servicing its installed base and strengthening profitability.

GE Vernova believes its ability to supply the electric power industry with a broad array of advanced technologies is a key differentiator. Key Power segment competitors include Siemens Energy, Mitsubishi Power, Westinghouse, Framatome, and Rolls-Royce. Key Wind segment competitors include Vestas, Siemens-Gamesa, Nordex, Envision, and Goldwind. Key Electrification segment competitors include Hitachi Energy, Siemens Energy, Siemens, Schneider Electric, Mitsubishi Electric, and ABB. The company's installed base generates approximately 25% of the world's electricity, and its workhorse products account for approximately 75% of its equipment RPO at December 31, 2025 .

GE Vernova generates revenue through the design, manufacture, delivery, and service of technologies for the electric power system. Revenue is split between equipment revenues and services revenues. For the year ended December 31, 2025, equipment revenues were $20.934 billion and services revenues were $17.134 billion . The company serves utilities, independent power producers, industrial, government, and other customers worldwide. Its business model includes long-term service agreements, particularly in the Power segment, which provide recurring revenue streams.

The Power segment serves power generation, industrial, government, and other customers with products and services related to energy production, including gas and steam turbines, full balance of plant, upgrade, and service solutions. As of December 31, 2025, Power had approximately $94.4 billion in remaining performance obligations (RPO) and a gas turbine installed base of approximately 7,000 units with approximately 1,800 units under long-term service agreements and an average remaining contract life of approximately 10 years . The segment had 51 HA-Turbines in RPO , 43 being installed and commissioned , and 126 HA-Turbines in the installed base with approximately 3.6 million operating hours . For the year ended December 31, 2025, Power segment revenues were $19.767 billion and segment EBITDA was $2.902 billion with a margin of 14.7% . The Wind segment includes onshore and offshore wind turbines and blades. Workhorse products include 2.8-127m, 3.6-154m, 6.1-158m, and 6.0-164m onshore units and the Haliade-X 220m offshore unit. Workhorse products account for approximately 75% of equipment RPO at December 31, 2025 . Included in RPO are services agreements on approximately 24,000 onshore wind turbines , from an installed base of approximately 59,000 units . The U.S. market represents approximately 60% of Onshore Wind's equipment RPO . For the year ended December 31, 2025, Wind segment revenues were $9.110 billion and segment EBITDA was $(0.598) billion with a margin of (6.6)% . The Electrification segment includes grid solutions, power conversion and storage, and electrification software. For the year ended December 31, 2025, Electrification segment revenues were $9.642 billion and segment EBITDA was $1.433 billion with a margin of 14.9% .

On April 2, 2024, General Electric Company (GE) completed the spin-off of GE Vernova. On October 21, 2025, GE Vernova announced it will acquire the remaining fifty percent stake of Prolec GE for approximately $5.3 billion at closing , expected to be funded equally between cash and debt, with the acquisition expected to close in February 2026. On December 9, 2025, the Board of Directors authorized an increase of the repurchase program to $10.0 billion of common stock repurchases, from the prior authorization of $6.0 billion announced on December 10, 2024. During the year ended December 31, 2025, the company repurchased 8.2 million shares for $3.3 billion . During the three months ended December 31, 2025, the company repurchased 1.9 million shares for $1,075 million . Effective December 9, 2025, the Board declared a dividend of $0.50 per share payable on February 2, 2026. During 2025, the company paid aggregate quarterly dividends of $1.00 per share ($0.25 per share for each dividend declared). The company also announced a restructuring plan on July 21, 2025, with expected pre-tax charges of approximately $0.4 billion to $0.6 billion and expected annualized savings of approximately $0.3 billion to $0.5 billion by 2027.

For the year ended December 31, 2025, total revenues were $38.1 billion , an increase of $3.1 billion from the prior year. Net income was $4.9 billion , an increase of $3.3 billion from the prior year, and net income margin was 12.8% . Diluted earnings per share was $17.69 for the year ended December 31, 2025, an increase of $12.11 from the prior year. Cash flows from operating activities were $5.0 billion for the year ended December 31, 2025, compared to $2.6 billion in the prior year. Adjusted EBITDA was $3.2 billion , an increase of $1.2 billion from the prior year. Free cash flow was $3.7 billion for the year ended December 31, 2025, compared to $1.7 billion in the prior year.

Business Outlook

A key growth vector is the demand for electricity generation, driven by population and global economic growth, as well as increasing demand from hyperscalers and data centers. The company expects significant growth in demand for its offerings to the electric power industry. In Nuclear Power, the company has an agreement with a customer for the deployment of small modular nuclear reactor (SMR) technology, making it the first commercial contract of its kind in North America, and is in discussion with the U.S. Administration regarding the development of SMRs. In Gas Power, the company is committed to long-term investments to meet growing demand by enhancing production capacity at existing factories. The company launched its first commercial direct air capture deployment with a collaborator, using GE Vernova's proprietary solid sorbent technology.

Another growth vector is grid modernization and investment, driven by increased demand and the integration of advanced generation and storage solutions. The Electrification segment continues to experience robust demand for large scale transmission-related equipment to interconnect renewables and move bulk power, as well as from other transmission activities to connect new power sources, to electrify industries including data centers playing a key role in the development of artificial intelligence (AI), and to modernize existing grid infrastructure. The company is making investments to expand capacity and capabilities to support this continued growth. RPO in the Electrification segment increased $11.2 billion (48%) from December 31, 2024, primarily due to demand for alternating current substation solutions, switchgear, and transformers at Grid Solutions and synchronous condensers and energy storage at Power Conversion & Storage.

The company is focused on improving margins and lowering risk through better underwriting, streamlining its product portfolio to focus on core workhorse products, and using lean to improve cost structure and productivity levels. The company expects to invest approximately $5 billion of cumulative R&D from 2025 through 2028 across its businesses. The company is implementing several restructuring and process transformation actions considered necessary to simplify its organizational structure. On July 21, 2025, the company announced a restructuring plan with expected pre-tax charges of approximately $0.4 billion to $0.6 billion and expected annualized savings of approximately $0.3 billion to $0.5 billion by 2027.

The company faces supply chain challenges, including global conflicts, geopolitical dynamics like sanctions, tariffs and other trade tensions, inflation, logistics issues, and regulatory changes. The total cost impact from global tariffs for the full year 2025 was approximately $250 million , after taking into consideration contractual protections and mitigating actions. To mitigate the impact of tariffs, the company is diversifying its supply chains, increasing U.S. manufacturing capabilities, and engaging with policy makers and industry associations. The company also faces disruptions or capacity constraints at its manufacturing and operating facilities, and planned capacity expansions may not result in the expected benefits if demand does not meet expectations.

The company's capital allocation framework is focused on generating cash flow to invest in core businesses, invest in targeted mergers and acquisitions, and return at least 1/3 of its cash generation to stockholders . The company expects to invest approximately $5 billion of cumulative R&D from 2025 through 2028 . Gross additions to property, plant, and equipment and internal-use software were $1.277 billion for the year ended December 31, 2025. On December 9, 2025, the Board authorized an increase of the repurchase program to $10.0 billion of common stock repurchases. The company paid aggregate quarterly dividends of $1.00 per share during 2025 and declared a dividend of $0.50 per share payable in February 2026.

Structural headwinds include decarbonization and energy-transition dynamics, including shifting policies, market economics, and technology trajectories. Increased policy support for fossil fuels or the rollback of renewable-supportive policies could reduce demand for renewable products. Conversely, falling renewable costs can reduce demand for new gas turbines and service for unabated gas plants. Changes in energy, environmental, and tax policies may reduce demand for products and undermine project economics. The company also faces risks from international trade policies, including tariffs, which could limit market access, disrupt supply chains, and raise costs. The total cost impact from global tariffs for the full year 2025 was approximately $250 million .

Geographic and regulatory constraints include operating globally, especially in emerging markets, which creates complex legal, regulatory, and compliance risks. The company operates in approximately 100 different countries and is subject to varying requirements. The U.S. market currently represents approximately 60% of Onshore Wind's equipment RPO , and this market has seen various changes related to sector-specific tariffs and production tax credits, increasing short-term demand volatility. On December 22, 2025, the United States Department of Interior announced it is pausing the leases for all large-scale offshore wind projects under construction in the United States, which had a direct impact on the Vineyard Wind project completion timeline.

Risk Factors

Quality issues among products, solutions, and services could cause significant costs, reduce demand, and lead to claims for damages or regulatory actions. The company designs sophisticated machinery including gas turbines, onshore and offshore wind turbines, grid infrastructure, and nuclear power generation equipment, and a serious failure could result in injury, widespread power outages, or environmental impacts. Significant supply chain and logistics disruptions, including volatility in the cost or availability of critical materials and components, could delay deliveries and increase costs. The company purchases approximately $20 billion in materials and components annually sourced from over 100 countries. The total cost impact from global tariffs for the full year 2025 was approximately $250 million . The company may fail to execute and accurately estimate long-term service obligations, particularly in Gas Power, where profitability depends on estimates of product durability, costs, and the availability of cost-reducing materials and technology. As of December 31, 2025, the net long-term service agreements balance of $3.4 billion represents approximately 4% of total estimated life of contract billings, and contracts are on average approximately 29% complete based on costs incurred. The company identified one reporting unit (Wind, with $3.3 billion of goodwill) where the fair value exceeds carrying value by 27% , indicating potential impairment risk if conditions deteriorate. The Spin-Off could result in significant tax liability if it is determined to be a taxable transaction, and the company may have corresponding indemnification obligations to GE, including if there is a 50% or greater change in stock by vote or value within the specified four-year period under Section 355(e).

Management Priorities

Management's message emphasizes GE Vernova's position as an industry leader to fulfill the growing demand for electrical power while driving the energy transition forward. The company strategy is focused on delivering on global sustainability, maintaining strong customer relationships, servicing the existing installed base, improving margins and lowering risk through better underwriting, streamlining the product portfolio, using lean to improve cost structure, innovating and investing in new offerings, and allocating capital with a focus on generating cash flow to invest in core businesses, invest in targeted M&A, and return at least 1/3 of cash generation to stockholders . Management highlights the company's strong history of innovation and the breadth of its portfolio as key strengths. The company expects significant growth in demand for its offerings to the electric power industry. Management also notes the company's commitment to advancing decarbonization technologies and its sustainability goals, including achieving carbon neutrality for Scope 1 and Scope 2 emissions by 2030 and tracking 90% of top products as part of its circularity framework by 2030.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Wind
  2. [2] Item 7, MD&A — Results of Operations
  3. [3] Item 7, MD&A — Results of Operations
  4. [4] Item 1, Business — Power
  5. [5] Item 1, Business — Power
  6. [6] Item 1, Business — Power
  7. [7] Item 1, Business — Power
  8. [8] Item 1, Business — Power
  9. [9] Item 1, Business — Power
  10. [10] Item 1, Business — Power
  11. [11] Item 7, MD&A — Segment Operations
  12. [12] Item 7, MD&A — Segment Operations
  13. [13] Item 7, MD&A — Segment Operations
  14. [14] Item 1, Business — Wind
  15. [15] Item 1, Business — Wind
  16. [16] Item 1, Business — Wind
  17. [17] Item 7, MD&A — Segment Operations
  18. [18] Item 7, MD&A — Segment Operations
  19. [19] Item 7, MD&A — Segment Operations
  20. [20] Item 7, MD&A — Segment Operations
  21. [21] Item 7, MD&A — Segment Operations
  22. [22] Item 7, MD&A — Segment Operations
  23. [23] Item 7, MD&A — Financial Presentation Under GE Ownership
  24. [24] Item 5, Market for Registrant's Common Equity
  25. [25] Item 5, Market for Registrant's Common Equity
  26. [26] Item 7, MD&A — Capital Resources and Liquidity
  27. [27] Item 5, Market for Registrant's Common Equity
  28. [28] Item 5, Market for Registrant's Common Equity
  29. [29] Item 5, Market for Registrant's Common Equity
  30. [30] Item 7, MD&A — Restructuring and Other Charges
  31. [31] Item 7, MD&A — Restructuring and Other Charges
  32. [32] Item 7, MD&A — Summary of Results
  33. [33] Item 7, MD&A — Summary of Results
  34. [34] Item 7, MD&A — Summary of Results
  35. [35] Item 7, MD&A — Summary of Results
  36. [36] Item 7, MD&A — Summary of Results
  37. [37] Item 7, MD&A — Summary of Results
  38. [38] Item 7, MD&A — Summary of Results
  39. [39] Item 7, MD&A — Summary of Results
  40. [40] Item 7, MD&A — Summary of Results
  41. [41] Item 7, MD&A — Summary of Results
  42. [42] Item 7, MD&A — Summary of Results
  43. [43] Item 7, MD&A — Free Cash Flow
  44. [44] Item 7, MD&A — Free Cash Flow
  45. [45] Item 7, MD&A — Segment Operations (Electrification)
  46. [46] Item 1, Business — Research and Development
  47. [47] Item 7, MD&A — Financial Presentation Under GE Ownership
  48. [48] Item 1, Business — Company Strategy
  49. [49] Item 7, MD&A — Free Cash Flow
  50. [50] Item 1, Business — Global Supply Chain
  51. [51] Item 1, Business — Global Supply Chain
  52. [52] Item 7, MD&A — Critical Accounting Estimates (Revenue Recognition on Service Agreements)
  53. [53] Item 7, MD&A — Critical Accounting Estimates (Revenue Recognition on Service Agreements)
  54. [54] Item 7, MD&A — Critical Accounting Estimates (Goodwill)
  55. [55] Item 7, MD&A — Critical Accounting Estimates (Goodwill)
  56. [56] Item 7, MD&A — Summary of Results
  57. [57] Item 7, MD&A — Summary of Results
  58. [58] Item 7, MD&A — Summary of Results
  59. [59] Item 7, MD&A — Earnings (Loss)
  60. [60] Item 7, MD&A — Earnings (Loss)
  61. [61] Item 7, MD&A — Summary of Results
  62. [62] Item 7, MD&A — Capital Resources and Liquidity
  63. [63] Item 7, MD&A — Capital Resources and Liquidity
  64. [64] Item 7, MD&A — Debt
  65. [65] Item 7, MD&A — Income Taxes
  66. [66] Item 7, MD&A — Income Taxes
  67. [67] Item 7, MD&A — Segment Operations (Power)
  68. [68] Item 7, MD&A — Segment Operations (Wind)
  69. [69] Item 7, MD&A — Segment Operations (Electrification)

Analysis on 6/8/2026