01—Abstract
Summary
Summary of the 10-Q filed July 23, 2025. Cited figures are marked; the original filing is the authoritative source.
GE Vernova Inc. (GEV) reported strong revenue growth for the second quarter and first half of 2025, driven by increases in all three segments: Power, Wind, and Electrification.
Total revenues rose 11%a year-over-year for the quarter and 11% for the half-year. The company experienced a significant year-over-year decrease in net income due to the non-recurrence of a large pre-tax gain from the sale of Steam Power nuclear activities in the prior year and a substantial reduction in other income. However, excluding these one-time items, operational performance remained robust, with Adjusted EBITDA showing a healthy increase of 47% for the quarter and 72% for the half-year, indicating improved underlying profitability and operational efficiency.
The company's backlog, measured by Remaining Performance Obligation (RPO), also demonstrated significant growth, increasing by 8%b from year-end 2024 and 11% year-over-year, reflecting strong demand for its products and services, particularly in the Power and Electrification segments. GE Vernova also generated substantial free cash flow, significantly increasing from the prior year, demonstrating effective cash generation capabilities. The company reaffirmed its financial outlook and continues to execute on its strategic priorities, including managing operational costs and investing in future growth.
02—Key points
Key Highlights
- Total revenues increased by 11% year-over-year for both the three and six months ended June 30, 2025, driven by growth across all segments.
- Net income attributable to GE Vernova decreased significantly year-over-year, largely due to the non-recurrence of a substantial pre-tax gain from a prior-year asset sale and a reduction in other income.
- Adjusted EBITDA increased substantially by 47% for the three months and 72% for the six months ended June 30, 2025, compared to the prior year, signaling improved operational performance.
- Remaining Performance Obligation (RPO) grew by 11% year-over-year to $128.7 billion as of June 30, 2025, indicating strong future revenue potential.
- Free Cash Flow (FCF) saw a significant improvement, reaching $1.2 billion for the six months ended June 30, 2025, compared to $0.2 billion in the prior year.
- The company announced a new restructuring plan to reduce general and administrative costs, expecting to incur $250 million to $275 million in costs with projected savings of $250 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, GE Vernova Inc. kept $0.06.
- Revenue$9.11B100.0%
- Cost of revenue−$7.26B79.7%
- Gross profit$1.85B20.3%
- Operating costs−$1.47B16.1%
- Operating income$378.0M4.1%
- Interest, other & tax$136.0M1.5%
- Net income$514.0M5.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 23, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $9.11B$8.20B | +11.1% |
| Cost of Revenue | $7.27B$6.50B | +11.8% |
| Gross Profit | $1.85B$1.70B | +8.5% |
| R&D Expenses | $282.00M$237.00M | +19.0% |
| SG&A Expenses | $1.19B$938.00M | +26.3% |
| Operating Income | $378.00M$527.00M | −28.3% |
| Net Income | $514.00M$1.29B | −60.3% |
| EPS (Basic) | $1.89$4.72 | −60.0% |
| EPS (Diluted) | $1.86$4.65 | −60.0% |
| Shares Outstanding (Basic) | 272.00M274.00M | −0.7% |
| Shares Outstanding (Diluted) | 276.00M278.00M | −0.7% |
05—Questions
Frequently Asked Questions
What drove the significant decrease in net income compared to the prior year?
The substantial decrease in net income for the three and six months ended June 30, 2025, compared to the prior year, was primarily due to the non-recurrence of a significant pre-tax gain of approximately $0.9 billion recognized in the second quarter of 2024 from the sale of a portion of Steam Power nuclear activities to EDF. Additionally, a decrease in other income and a rise in operating expenses related to standing up as a standalone public company also contributed.
How is GE Vernova's backlog trending, and what does it indicate for future revenue?
GE Vernova's backlog, as measured by Remaining Performance Obligation (RPO), showed strong growth. Total RPO increased by 11% year-over-year to $128.7 billion as of June 30, 2025. This increase, driven by strong demand in the Power and Electrification segments, indicates a robust pipeline of future work and provides confidence in the company's revenue outlook.
What is the company's cash flow generation like, and how is it being used?
GE Vernova demonstrated significant improvement in cash flow generation. Free Cash Flow (FCF) was $1.2 billion for the six months ended June 30, 2025, a substantial increase from $0.2 billion in the prior year. This strong cash generation is supporting strategic priorities including returning capital to stockholders through dividends and share repurchases, as evidenced by the $0.4 billion and $1.6 billion spent on share repurchases in the respective quarters.
Are there any significant restructuring or cost-saving initiatives underway?
Yes, GE Vernova approved a new restructuring plan on July 21, 2025, aimed at accelerating enterprise transformation activities to reduce general and administrative costs. The company anticipates incurring approximately $250 million to $275 million in costs, with an expected benefit of approximately $250 million in savings, primarily starting in 2026.
06—Continue