Q1 2025 GE Vernova Inc Earnings Call Transcript
Key Points
- GE Vernova Inc (GEV) reported a strong start to 2025 with continued orders and revenue growth, and adjusted EBITDA margin expansion.
- The company has a solid balance sheet with an $8 billion cash balance and growing free cash flow, positioning it well for future investments.
- GE Vernova Inc (GEV) has a total backlog of $123 billion, with significant growth in both equipment and services backlogs.
- The Power segment delivered robust orders growth, increased revenue, and further EBITDA margin expansion, with gas power equipment orders increasing by over 30%.
- Electrification systems experienced a 10% sequential backlog growth, driven by strong demand for transformers and switchgear, particularly in North America and Asia.
- GE Vernova Inc (GEV) expects costs to increase by $300 million to $400 million in 2025 due to tariffs and resulting inflation.
- The Wind segment faced a 43% decrease in orders, driven by lower onshore wind equipment orders due to U.S. policy uncertainty and permitting delays.
- Offshore wind continues to face challenges, with losses improving sequentially but still impacted by a one-time termination of a supply agreement.
- The company remains cautious about the timing of an onshore order inflection in North America due to growing interconnection queues and policy uncertainty.
- Tariffs are expected to impact about a quarter of GE Vernova Inc (GEV)'s total direct spend, with the most significant impact on the China base.
Good day, ladies and gentlemen, and welcome to GE Vernova's first-quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. My name is Liz, and I will be your conference coordinator today. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the program over to your host for today's conference, Michael Lapides, Vice President of Investor Relations. Please proceed.
Thank you. Welcome to GE Vernova's first-quarter 2025 earnings call. I'm joined today by our CEO, Scott Strazik; and CFO, Ken Parks. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's Form 10-Q, press release, and presentation slides, all of which are available on our website.
Please note that year-over-year commentary or variances on orders, revenue, adjusted and segment EBITDA and margins discussed during our prepared
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
