GE Vernova Inc. ((GEV)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for GE Vernova Inc. painted a picture of optimism, underscored by strategic acquisitions and strong financial performance across various segments. Despite the positive outlook, the company acknowledged challenges in the wind segment and tariff uncertainties that could pose some obstacles moving forward.
Prolec GE Acquisition
GE Vernova announced its acquisition of the remaining 50% of Prolec GE for $5.275 billion, a move expected to close by mid-2026. This acquisition is projected to be immediately accretive to EBITDA before synergies and aligns with GE Vernova’s strategic goals to enhance its capabilities in the grid equipment market.
Strong Financial Performance
In the third quarter of 2025, GE Vernova reported a 10% organic revenue growth, with adjusted EBITDA margins expanding by 600 basis points. The company also generated $730 million in free cash flow, contributing to a robust cash balance of nearly $8 billion, showcasing its strong financial health.
Electrification Segment Growth
The electrification segment experienced significant growth, with revenue increasing over 30% and margins expanding to over 15%. Equipment orders more than doubled year-over-year, driven by strong demand in North America, the Middle East, and Europe.
Gas Power Segment Success
The Gas Power segment also saw remarkable success, with orders growing by 50%, led by equipment orders more than doubling year-over-year. The segment’s EBITDA margin expanded to 13.3%, highlighting its strong performance.
Positive Renewable Energy Developments
In renewable energy, wind services orders increased by 27% year-to-date. The company achieved higher offshore deliveries and increased onshore services, excluding a prior year offshore settlement, indicating positive developments in this area.
Challenges in Onshore Wind
However, the onshore wind segment faced challenges, with equipment orders remaining soft due to customer permitting delays and tariff uncertainty, which could impact the 2026 revenue outlook.
Wind Segment Revenue Decline
The wind segment experienced a 9% revenue decline in Q3 2025, attributed to the absence of a prior year offshore contract cancellation settlement and charges for blade events recorded in Q3 2024.
Tariff Impact
GE Vernova anticipates tariffs to have a net mitigating impact of between $300 million to $400 million for the full year 2025, reflecting the ongoing challenges posed by tariff uncertainties.
Forward-Looking Guidance
During the call, GE Vernova provided guidance on the Prolec GE acquisition, highlighting expectations for revenue growth and synergies. The acquisition is expected to close by mid-2026, with Prolec GE’s revenue projected to increase from $3 billion in 2025 to over $4 billion by 2028. EBITDA margins are expected to grow to over $1 billion before synergies. GE Vernova anticipates realizing $60 million to $120 million in annualized cost synergies by 2028, driven by common design practices, sourcing efficiencies, and lean process improvements.
In conclusion, GE Vernova’s earnings call conveyed a strong positive sentiment, bolstered by strategic acquisitions and robust financial performance. While challenges in the wind segment and tariff uncertainties present some headwinds, the company’s forward-looking guidance and strategic initiatives position it well for future growth.