01—Abstract
Summary
Summary of the 8-K filed October 22, 2025. Cited figures are marked; the original filing is the authoritative source.
GE Vernova reported third-quarter 2025 results on October 22, 2025, showing strong demand and continued margin expansion.
Orders rose 55% organically to $14.6 billiona, led by Power (+50% organically to $7.8 billion) and Electrification (+102% organically to $5.1 billion). Revenue grew 12% (10% organically) to $10.0 billion, and net income was $453 million (4.5% margin). Adjusted EBITDA reached $811 million, an 8.1% margin versus 2.7% a year earlier, and free cash flow was $732 million, down 24% year over year as lower working capital benefits and higher capex offset stronger earnings.
Year-to-date, backlog grew about $16 billionb and Gas Power equipment backlog plus slot reservation agreements rose from 55 to 62 GW. Management reaffirmed 2025 guidance: revenue trending toward the high end of $36-37 billion, adjusted EBITDA margin of 8-9%, and free cash flow of $3.0-3.5 billion. Electrification organic growth guidance was raised to roughly 25% from about 20%, while Wind guidance worsened to organic revenue down high-single digits and segment EBITDA losses trending toward the bottom of the $200-400 million range (now about $400 million).
Capital returns continued, with $2.4 billionc returned year to date through buybacks and dividends. The company also announced the $5.275 billion acquisition of the remaining 50% of Prolec GE, expected to close by mid-2026, and an agreement to sell its Proficy software business to TPG for $0.6 billion.
For investors, the key questions are whether the record order intake converts into revenue at the expected pace, how Wind losses and tariff-related inflation (trending to the low end of $300d-400 million) evolve, and how the Prolec GE acquisition affects leverage and free cash flow. Detailed 2026 guidance is scheduled for the December 9 investor event.
02—Key points
Key Highlights
- Orders of $14.6B, up 55% organically, led by Power ($7.8B, +50%) and Electrification ($5.1B, +102%); year-to-date backlog grew about $16B
- Revenue of $10.0B, up 12% (10% organically), with Electrification revenue up 35% and Power up 15%, offsetting an 8% decline in Wind
- Adjusted EBITDA of $811M (8.1% margin vs. 2.7% a year ago); segment EBITDA margins expanded in all three segments, with Wind swinging to a loss of $61M from $317M
- Free cash flow of $732M, down 24% year over year, reflecting lower working capital benefits and higher capex; year-to-date FCF of $1.9B (up 68%)
- 2025 guidance reaffirmed: revenue toward the high end of $36-37B, adjusted EBITDA margin of 8-9%, and FCF of $3.0-3.5B; Electrification organic growth raised to ~25%, while Wind outlook weakened
- Announced $5.275B acquisition of the remaining 50% of Prolec GE (expected close mid-2026) and sale of Proficy to TPG for $0.6B
- Returned $2.4B to shareholders year to date; ended the quarter with a $7.9B cash balance
03—Questions
Frequently Asked Questions
What drove the strong order growth in the third quarter?
Orders rose 55% organically to $14.6B. Power orders more than doubled in Gas Power equipment, with 20 heavy-duty units (including 13 HA turbines) and about 12 GW of new gas equipment contracts. Electrification orders more than doubled on grid demand in the Middle East, North America, and Europe, including $1.6B of synchronous condenser orders in Saudi Arabia.
Is the Wind segment improving?
Wind EBITDA improved sharply year over year, with the segment margin at (2.3)% versus (11.0)% a year earlier, helped by Onshore Wind profitability and the absence of prior-year charges. However, Wind revenue fell 8% and 2025 guidance was lowered to organic revenue down high-single digits (from mid-single digits), with segment EBITDA losses of about $400M, trending toward the bottom of the range.
Why did free cash flow decline despite higher earnings?
Free cash flow was $732M, down 24% from $968M, because strong adjusted EBITDA was offset by lower positive working capital benefits and higher capital expenditures ($247M in the quarter versus $159M a year earlier). Management says free cash flow linearity is improving, and full-year 2025 FCF guidance of $3.0-3.5B is reaffirmed.
How will the Prolec GE acquisition affect the company?
GE Vernova will acquire the remaining 50% stake in Prolec GE, its joint venture with Xignux, for $5.275B, expected to close by mid-2026 subject to regulatory approvals. The company says the deal strengthens its position as a global grid equipment leader. The filing does not detail how the purchase will be funded or its expected impact on leverage and free cash flow.
When will investors get 2026 guidance?
Management plans to provide 2026 financial guidance and an updated outlook through 2028 at its investor event on December 9, 2025.
04—Continue