Shares of GE Vernova Inc. (NYSE:GEV) jumped 4.6% in premarket trading Wednesday following the company’s stronger-than-expected second-quarter results and an upgraded outlook for the full year, driven by solid demand for power and grid infrastructure solutions.
The firm reported earnings of $1.86 per share for Q2, well above analyst estimates of $1.50. Revenue reached $9.11 billion, beating the consensus forecast of $8.8 billion and marking an 11% increase year-over-year (12% on an organic basis). Growth was broad-based, led by gains in both equipment and services across business segments.
“GE Vernova had a productive second quarter, positioning us well to continue to accelerate our growth and margin expansion from here,” said CEO Scott Strazik. “We are at the beginning of an investment supercycle into more reliable baseload power, grid infrastructure and decarbonization solutions.”
The company’s backlog rose by more than $5.2 billion sequentially, with Gas Power equipment backlog and slot reservation agreements growing from 50 to 55 gigawatts. Power segment orders surged 44% organically, led by Gas Power equipment, while Electrification segment revenue increased 23% (20% organically), driven mainly by grid solutions growth.
Reflecting its strong results, GE Vernova raised its 2025 revenue guidance, now expecting to reach the upper range of $36-37 billion, close to analyst consensus of $37 billion. The adjusted EBITDA margin forecast was raised to 8-9% from prior high-single-digit guidance, and free cash flow outlook was significantly increased to $3.0-3.5 billion from $2.0-2.5 billion.
Financially, the company remained solid with a $7.9 billion cash balance and returned $1.7 billion to shareholders year-to-date through dividends and share buybacks.
Wind remained the most challenging segment, with a $165 million EBITDA loss due to increased Onshore Wind services costs and tariff impacts at Offshore Wind. Nonetheless, the company invested over $100 million to enhance the performance of its wind turbine installed base.
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