GE Vernova (GEV) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with 11% revenue growth (15% organically), significant margin expansion, and net income of $264M, up $370M year-over-year.

• Orders rose 8% to $10.2B, led by services and Power equipment; backlog reached $123.4B, up 6% year-over-year.

• Free cash flow improved by $1.6B year-over-year to $1.0B, supporting investment and shareholder returns.

• Returned $1.5B to shareholders YTD via share repurchases and inaugural dividend; ended Q1 with $8.1B cash.

• Reaffirmed 2025 guidance despite $300–$400M in expected tariff/inflation impacts, with mitigation actions underway.

Financial highlights

• Q1 revenue grew 15% organically to $8.2B; adjusted EBITDA rose to $460M, margin expanded 170 bps to 5.7%.

• Power segment: orders up 28% to $6.2B, revenue up 16% to $4.4B, EBITDA margin 11.5%.

• Electrification: revenue up 18% to $1.9B, EBITDA margin 11.4% (+740 bps), driven by Grid Solutions.

• Wind: revenue up 15% to $1.85B, EBITDA loss improved to $(146)M, margin –7.9% (+270 bps).

• Free cash flow conversion reached 369% in Q1 2025.

Outlook and guidance

• 2025 revenue expected at $36–$37B, high-single-digit adjusted EBITDA margin, and free cash flow of $2.0–$2.5B.

• Power: mid-single-digit organic revenue growth, 13–14% EBITDA margin.

• Wind: organic revenue down mid-single digits, $200–$400M segment EBITDA losses.

• Electrification: mid-to-high-teens organic revenue growth, 11–13% EBITDA margin.

• Guidance includes $300–$400M net impact from tariffs and inflation, with positive free cash flow in all quarters.