10-QPeriod: Q1 FY2025

GE Vernova Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 23, 2025For Securities:GEV

Summary

GE Vernova Inc. (GEV) demonstrated a significant financial turnaround in the first quarter of 2025 compared to the same period in 2024. Total revenues increased by 11% to $8.0 billion, while net income swung from a loss of $106 million to a profit of $264 million. This improvement was driven by robust growth across all segments, particularly in Power and Electrification, supported by strong equipment and services revenue. The company also saw a substantial increase in cash flow from operations, reaching $1.2 billion, a marked improvement from the negative $0.4 billion in the prior year. Key strategic initiatives appear to be gaining traction, as evidenced by the growth in Remaining Performance Obligations (RPO) to $123.4 billion. The company is actively managing its capital, repurchasing $1.2 billion in stock and initiating a quarterly dividend. Despite ongoing efforts in restructuring and managing legacy costs, the financial performance indicates positive momentum. Investors should monitor the impact of global tariffs, ongoing efforts to release deferred tax asset valuation allowances, and the successful integration of recent business unit consolidations.

Financial Highlights

45 data points
Beta

Revenue

$8.03B

18.3% Gross Margin

Net Income

$254.00M

3.2% Net Margin

EPS (Diluted)

$0.91

Total Assets

$51.56B

Cash & Equivalents

$8.11B

Free Cash Flow

$1.16B

Financial Statements
Beta
Revenue$8.03B
Cost of Revenue$6.56B
Gross Profit$1.47B
R&D Expenses$239.00M
SG&A Expenses$1.19B
Operating Income$43.00M
Net Income$254.00M
EPS (Basic)$0.92
EPS (Diluted)$0.91
Shares Outstanding (Basic)275.00M
Shares Outstanding (Diluted)279.00M

Key Highlights

  • 1Total revenues increased 11% to $8.03 billion in Q1 2025, up from $7.26 billion in Q1 2024.
  • 2Net income turned positive, reaching $264 million in Q1 2025, a significant improvement from a net loss of $106 million in Q1 2024.
  • 3Operating income improved by $332 million, moving from a loss of $289 million in Q1 2024 to income of $43 million in Q1 2025.
  • 4Cash flow from operations was a strong positive $1.16 billion in Q1 2025, compared to a negative $0.44 billion in Q1 2024.
  • 5Remaining Performance Obligations (RPO) grew to $123.4 billion as of March 31, 2025, up from $116.3 billion in the prior year.
  • 6GE Vernova repurchased $1.2 billion of its common stock in Q1 2025 under its $6 billion authorization.
  • 7The company reported a positive Adjusted EBITDA of $457 million in Q1 2025, a substantial increase from $189 million in Q1 2024.

Frequently Asked Questions

The improved financial performance was primarily driven by a significant increase in total revenues, which rose 11% to $8.03 billion. This revenue growth was bolstered by higher sales in equipment and services across all segments, particularly the Power and Electrification segments. The company also benefited from improved pricing, volume, and productivity, leading to a substantial increase in operating income and a swing from a net loss to a net profit.

GE Vernova experienced a dramatic improvement in its cash flow from operations, which reached $1.16 billion in the first quarter of 2025, a substantial increase from a negative $0.44 billion in the same period of 2024. This was largely due to favorable changes in working capital, including increases in contract liabilities and current deferred income, as well as improved collections on receivables. Free cash flow also turned positive, reaching $0.975 billion compared to a negative $0.661 billion in the prior year.

The increase in RPO to $123.4 billion signifies a strong backlog of future contracted revenues for equipment and services. This growth, particularly in the Power and Electrification segments, indicates sustained demand for GE Vernova's offerings and provides visibility into future revenue streams. The company expects to recognize revenue from these obligations over the coming years, suggesting a solid foundation for future financial performance.

GE Vernova has an active capital allocation strategy. In the first quarter of 2025, the company repurchased approximately $1.2 billion of its common stock under its previously announced $6 billion authorization. Additionally, on April 8, 2025, the Board of Directors declared a quarterly dividend of $0.25 per share. These actions demonstrate a commitment to returning capital to shareholders while also investing in growth.