GE Vernova (GEV) Investor Update summary

Financial outlook and guidance

• 2025 revenue guidance raised to $36–$37 billion, with 5.5–6% EBITDA margins and $2–$2.5 billion free cash flow, reflecting robust demand and operational improvements.

• By 2028, targets $45 billion in revenue, 14% EBITDA margin, and at least $14 billion cumulative free cash flow after significant R&D and CapEx investments.

• 2024 revenue expected at the high end of $34–$35 billion guidance, with EBITDA margin at 2.4%–6% and free cash flow up to $1.7 billion.

• 80% of 2025 revenue is already in backlog at improved margins, supporting visibility and confidence in future growth.

• No incremental price increases or significant variable cost productivity assumed in guidance, offering upside potential.

Operational and market drivers

• Gas power segment sees strong demand, with 20 GW of orders expected annually and significant slot reservation agreements for 2025–2028 at higher prices.

• Electrification segment is the fastest-growing, with equipment backlog tripling since 2022 and strong demand in Europe and North America.

• Wind segment projects limited onshore growth, focusing on profitability and backlog reduction in offshore; onshore break-even point reduced to 1,000 turbines/year.

• Lean initiatives drive productivity, margin expansion, and capacity growth without major CapEx, especially in power and electrification.

• Lean initiatives have reduced outage cycle times by 30% and part travel by 66%, with Gas Power leading the transformation.

Capital allocation and shareholder returns

• Launching a $1/share annualized dividend and a $6 billion share repurchase program, with at least one-third of free cash flow to be returned to shareholders.

• Maintains a strong, net cash-positive balance sheet, targeting $8 billion cash at year-end and $14 billion cumulative free cash flow from 2025–2028.

• Focused on organic growth, with selective bolt-on M&A for supply chain integration and margin durability; no major acquisitions planned near term.

• CapEx and R&D investments prioritized for businesses with proven operational excellence and Lean maturity.

• Disciplined capital allocation prioritizes organic growth, targeted M&A, and maintaining an investment-grade balance sheet.