GE Vernova Inc. (NYSE:GEV) shares rose 5.2% after the energy transition group reported fourth-quarter revenue well ahead of expectations and lifted its forward guidance, reflecting the impact of its recently completed Prolec GE acquisition.
The company delivered fourth-quarter revenue of $11 billion, beating the analyst consensus of $10.23 billion and marking a 4% increase year on year, or 2% on an organic basis. GAAP earnings per share totaled $13.39, boosted by a $2.9 billion tax benefit linked to the release of a U.S. valuation allowance. Adjusted EBITDA reached $1.2 billion, representing a margin of 10.6%.
Free cash flow for the quarter came in at a robust $1.8 billion, underpinned by strong order momentum. Orders grew 65% organically to $22.2 billion, with gains recorded across all business segments. GE Vernova said its backlog increased by $15 billion sequentially, driven by equipment and services demand in its Power and Electrification divisions.
“We delivered strong financial performance in 2025 with continued momentum in Power and Electrification while focusing on what we can control in Wind,” said GE Vernova CEO Scott Strazik. “We increased our backlog to $150 billion, with better equipment margins, and are entering 2026 with significant momentum.”
Following regulatory clearance of the Prolec GE deal, the company upgraded its 2026 outlook. GE Vernova now expects revenue of $44–$45 billion, up from a prior range of $41–$42 billion, and free cash flow of $5.0–$5.5 billion, compared with earlier guidance of $4.5–$5.0 billion. It also raised its longer-term targets, forecasting 2028 revenue of $56 billion and cumulative free cash flow of at least $24 billion.