GE Vernova reported strong Q4 and full-year 2025 results, with total backlog reaching $150B and free cash flow of $3.7B. Management raised 2026 guidance, including the Prolec GE acquisition, citing accelerating demand in gas power and grid electrification, while offshore wind continues to face execution challenges from a U.S. stop-work order. Key supply-chain themes include rapid gas turbine capacity expansion, strong pricing in slot reservations, and a tripling of direct data-center orders for electrification equipment. Total 2025 revenue of $38B (+9% YoY); FCF $3.7B doubled YoY; adjusted EBITDA margin expanded 210 bps.
GE Vernova reported strong Q4 and full-year 2025 results, with total backlog reaching $150B and free cash flow of $3.7B. Management raised 2026 guidance, including the Prolec GE acquisition, citing accelerating demand in gas power and grid electrification, while offshore wind continues to face execution challenges from a U.S. stop-work order. Key supply-chain themes include rapid gas turbine capacity expansion, strong pricing in slot reservations, and a tripling of direct data-center orders for electrification equipment. Total 2025 revenue of $38B (+9% YoY); FCF $3.7B doubled YoY; adjusted EBITDA margin expanded 210 bps.
Management expressed strong conviction in demand and pricing, highlighted record order momentum, and raised 2026 guidance, while acknowledging challenges in wind but framing them as manageable.
Reported gross margin was 21.18%, reinforcing the quarter's better-than-guided profitability.
Gas backlog and slot reservations surged to 83 GW, expected 100 GW by 2026. Management expressed strong conviction in demand and pricing, highlighted record order momentum, and raised 2026 guidance, while acknowledging challenges in wind but framing them as manageable.
Gas power booked 24 GW of new contracts in Q4 alone; slot reservations (SRAs) surged to 43 GW, signaling 10-20% pricing improvement over existing backlog.
Management highlighted that AI is starting to gain momentum in engineering and back-office functions, and they are investing in AI, robotics, and automation to drive productivity. Returns from these investments are expected to grow in 2027 and become a bigger part of margin expansion in 2028, though not included in current outlook.
Gas backlog and slot reservations surged to 83 GW, expected 100 GW by 2026. Management expressed strong conviction in demand and pricing, highlighted record order momentum, and raised 2026 guidance, while acknowledging challenges in wind but framing them as manageable.
Management is significantly increasing capital expenditure to expand capacity, with over 200 new machines installed in factories in 2025 and plans for another 200 machines and over 500 production workers in 2026. They expect a substantial step up in gas turbine output starting in 3Q26, and cumulative CapEx/R&D through 2028 is expected at approximately $11 billion, including incremental CapEx from
Management expressed strong conviction in demand and pricing, highlighted record order momentum, and raised 2026 guidance, while acknowledging challenges in wind but framing them as manageable.
“In power, we continue to see accelerating demand and favorable pricing trends for both equipment and services as customers invest in new units and existing assets.”
“Of note, over 2 billion of electrification's orders were signed directly for data centers in 25, more than triple the 24 total.”
“We remain on track to see a substantial step up in gas turbine output in 3Q26. We installed over 200 new machines in our factories while adding nearly 1,000 new production workers in 2025.”
“At the end of March, we'll lose access to the vessel required to complete installation of the remaining turbines. If we're unable to complete the installation of the remaining 11 turbines, 2026 wind revenue could be negatively impacted by…”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Free cash flow | FY2026 | $5B–$5.5B | $5.25B | RAISED |
| Op margin | FY2026 | 11%–13% | 12% | MAINTAINED |
| Op marginPOWER | FY2026 | 16%–18% | 17% | MAINTAINED |
| Op marginELECTRIFICATION | FY2026 | 17%–19% | 18% | MAINTAINED |
| Revenue | FY2026 | $44B–$45B | $44.5B | RAISED |
| RevenueELECTRIFICATION | FY2026 | $13.5B–$14B | $13.75B | RAISED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2025 Q3 | Free cash flow | FY2025 | $3B–$3.5B | $3.7B | Met / beat |
| FY2025 Q3 | Revenue | FY2025 | $36B–$37B | $38B | Met / beat |