01—Abstract
Summary
Summary of the 8-K filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.
GE Vernova (GEV) reported first-quarter 2025 results on April 23, 2025, showing broad-based top-line and margin improvement.
Revenue rose 11% to $8.0 billiona (up 15% organically), and GAAP net income swung to $264 million from a $106 million loss a year earlier, with diluted EPS of $0.91. Adjusted EBITDA reached $457 million, a 5.7% margin versus 2.6% a year ago. Orders were $10.2 billion, up 8% organically, led by Power equipment (+43% organically for Gas Power equipment) and services (+16%).
Cash generation was the standout. Operating cash flow was $1.16 billionb, and free cash flow turned positive at $975 million, a $1.6 billion improvement year over year, helped by higher down payments at Power and better working capital linearity. The company ended the quarter with an $8.1 billion cash balance and returned $1.3 billion to shareholders through buybacks and its first $0.25 quarterly dividend.
Fitch also revised its outlook on GE Vernova's BBB rating to Positive. The main watch items are the Wind segment, which still posted an EBITDA loss of $146 millionc and saw orders fall 44%, and tariff-related inflation.
Management reaffirmed full-year 2025 guidance of $36d-37 billion in revenue, high-single-digit adjusted EBITDA margin, and $2.0-2.5 billion in free cash flow, including an estimated $300-400 million net tariff and inflation impact. Note that this 8-K furnishes the earnings release under Item 2.02 and the financials are unaudited press-release figures.
02—Key points
Key Highlights
- Revenue of $8.0B, up 11% reported and 15% organically, with growth in both equipment and services and positive price across all segments.
- Net income of $264M versus a $106M loss in 1Q'24; net margin of 3.3%, up 480 bps. Adjusted EBITDA of $457M (5.7% margin, up 310 bps).
- Free cash flow of $975M, up $1.6B year over year, driven by Power down payments and working capital improvements.
- Orders of $10.2B, up 8% organically; Power orders up 28% organically with 29 GW of Gas Power equipment in backlog and 21 GW of slot reservation agreements not yet in backlog.
- Power segment EBITDA margin of 11.5% (up 290 bps); Electrification margin of 11.4% (up 740 bps), led by Grid Solutions volume and pricing.
- Wind remains loss-making with a $146M segment EBITDA loss and orders down 44%, though the loss narrowed and the last remaining Offshore Wind supply agreement (besides two in execution) was terminated.
- Capital returns of $1.3B in the quarter (about 4M shares repurchased for $1.2B, plus the first $0.25/share dividend), with 2025 guidance reaffirmed including roughly $300-400M of tariff-related inflation.
03—Questions
Frequently Asked Questions
Did GE Vernova change its 2025 guidance?
No. Management reaffirmed 2025 guidance: revenue of $36-37 billion, high-single-digit adjusted EBITDA margin, free cash flow of $2.0-2.5 billion, and segment outlooks for Power, Wind, and Electrification. The guidance includes an estimated $300-400 million tariff and inflation impact, net of mitigation.
Is the Wind segment still a drag on results?
Yes. Wind posted a $146M EBITDA loss in the quarter, although it improved from a $173M loss a year earlier. Orders fell 44% on lower U.S. Onshore Wind equipment demand, and full-year guidance still calls for $200-400M of Wind segment EBITDA losses.
What drove the improvement in free cash flow?
Free cash flow improved by $1.6B to $975M, reflecting higher customer down payments at Power, better working capital management, and improved linearity of cash generation across the quarter. Management described positive free cash flow as a milestone for the company.
How much capital is GE Vernova returning to shareholders?
About $1.3B in the quarter: roughly 4 million shares repurchased for $1.2B in Q1, plus about 1 million shares for $0.3B from April 1 to April 17, and a $0.25 per share quarterly dividend paid for the first time, with a second-quarter dividend declared payable May 16, 2025.
What is the outlook for the Power segment's backlog and growth?
Power orders rose 28% organically to $6.2B, and gas turbine backlog reached 29 GW. Another 21 GW of slot reservation agreements are not yet in backlog, which provides visibility for future equipment deliveries. Power's 2025 guidance calls for mid-single-digit organic revenue growth and a 13-14% segment EBITDA margin.
04—Continue