GE Vernova (GEV) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in 2025, with significant growth in orders, backlog, margin expansion, and cash generation, driven by Power and Electrification segments.

• Free cash flow more than doubled to $3.7B, with $3.6B returned to shareholders and a robust cash balance at year-end.

• Raised multi-year financial outlooks and guidance, reflecting the Prolec GE acquisition and continued strong demand.

• Increased buyback authorization to $10B and doubled the dividend, entering 2026 from a position of financial strength.

Financial highlights

• Orders reached $59.3B for 2025, up 34% year-over-year; Q4 orders were $22.2B, up 65% year-over-year.

• Backlog grew over 25% to $150.2B in 2025.

• Revenue rose 9% year-over-year to $38.1B; Q4 revenue was $11.0B.

• Adjusted EBITDA for FY'25 was $3.2B (8.4% margin), with Q4 adjusted EBITDA at $1.2B (10.6% margin).

• Free cash flow for FY'25 reached $3.7B, more than doubling year-over-year.

Outlook and guidance

• 2026 revenue guidance raised to $44–$45B, with adjusted EBITDA margin of 11%–13% and free cash flow of $5.0–$5.5B.

• By 2028, revenue expected to reach at least $56B, with adjusted EBITDA margin of 20% and cumulative free cash flow of at least $24B.

• Power segment expected to deliver high-teens organic growth and 22% EBITDA margin by 2028; Electrification to benefit from Prolec GE acquisition; Wind to remain challenged.

• Wind segment to see low double-digit revenue decline and EBITDA losses of ~$400M in 2026, with improvement expected in the second half.