Ge Vernova — Financial Results

Revenue and Profit Are Growing Strongly Across the Business

GE Vernova grew revenues by 9% in 2025, with both equipment and services contributing. More importantly, the business converted that growth into dramatically higher profits and cash — free cash flow more than doubled to $3.7 billion. The improvement was driven primarily by the Electrification and Power segments, where better pricing and improved operational efficiency are coming through clearly.

The Order Backlog Surged 26%, Signaling Strong Demand Ahead

RPO (remaining performance obligations — essentially the company's order backlog) jumped $31 billion in a single year to $150 billion. Equipment orders led the surge, driven by record gas turbine orders and booming demand in the Electrification segment. This backlog provides strong revenue visibility for years ahead.

Electrification Is the Standout Performer, Margins Nearly Tripling in Two Years

The Electrification segment — which includes grid infrastructure products like transformers, switchgear, and substation equipment — grew revenues 28% and saw its profitability margin nearly quadruple over two years. Its order backlog also jumped 48% in 2025 alone. This is the segment most directly tied to grid modernization and data center power demand.

Gas Turbine Orders Are at Record Levels, Powering the Power Segment

Orders for gas turbines — particularly the flagship heavy-duty models — nearly tripled in gigawatt terms over two years. The Power segment's EBITDA margin expanded from 9.9% in 2023 to 14.7% in 2025, reflecting better pricing on new contracts. The surge in demand reflects utilities and data center developers securing capacity to meet rising electricity needs.

Wind Remains Loss-Making, With Policy Uncertainty Adding Pressure

Wind is the one segment still losing money, although losses have narrowed significantly from 2023. Revenue fell 6% as Offshore Wind faced project delays and the winding down of LM Wind Power's blade manufacturing footprint. Onshore Wind improved on better pricing, but U.S. policy uncertainty caused customers to pull back on new orders. The Wind backlog is shrinking — a trend worth watching.

A $5.3 Billion Acquisition Will Add a Major Transformer Manufacturer

GE Vernova announced it will acquire the remaining 50% of Prolec GE, a joint venture that manufactures transformers and employs roughly 10,000 people across seven sites. The $5.3 billion purchase price will be funded half in cash and half in new debt — a meaningful use of the company's strong cash position. The deal is expected to close in early 2026 and would directly expand capacity in one of the most in-demand parts of the grid infrastructure market.

A Large Tax Benefit Inflated 2025 Net Income — Worth Understanding

The reported net income of $4.9 billion included a $2.9 billion one-time tax benefit from releasing a valuation allowance (an accounting reserve held against deferred tax assets — essentially, the company now believes it will generate enough future profit to use tax credits it had previously set aside as uncertain). Strip that out and underlying operating profit, while genuinely improving, is more modest. The Adjusted EBITDA figure of $3.2 billion is a cleaner measure of recurring business performance.