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GE Vernova (GEV) delivered an impressive beat-and-raise performance in 2Q25 fueled by robust demand for power and grid infrastructure systems, with CEO Scott Strazik characterizing the backdrop as an “investment supercycle” into reliable baseload power, grid infrastructure, and decarbonization solutions. The strong results, outlook, and bullish commentary have sent shares of GEV soaring higher. 

Furthermore, the company’s backlog grew by a substantial $5.2 bln sequentially to $128.7 bln, primarily driven by rising orders for gas power equipment, reflecting strong market demand for reliable energy solutions. Gas power equipment backlog and slot reservation agreements expanded from 50 to 55 gigawatts, with 9 gigawatts of new gas equipment contracts signed in the quarter. This growth highlights GEV’s ability to capture demand from data centers, industrial electrification, and global power needs, particularly in markets like the U.S., Japan, and Romania, positioning the company for sustained revenue visibility.

• The Power segment was a standout, with orders surging 44% organically to $7.1 bln, led by robust demand for gas power equipment and services, including a notable contract for three H-class gas turbines for Japan’s Nanko power station. Segment revenue increased 6.8% to $4.76 bln, and EBITDA margin expanded 260 bps to 16.2%, driven by higher volume, improved pricing, and productivity gains, though partially offset by tariff-related costs.
• GEV also raised its FY25 Power segment guidance to 6-7% organic revenue growth (from mid-single digits) and 14-15% EBITDA margin (from 13-14%), reflecting confidence in sustained demand and operational efficiencies, particularly as gas turbine utilization rises to meet baseload power needs.
• The Electrification segment also performed strongly, with revenue jumping 23% (20% organically) to $2.2 bln, driven by Grid Solutions’ growth in high-voltage direct current (HVDC), switchgear, and transformer volumes, fueled by global grid modernization efforts. Segment EBITDA margin nearly doubled to 14.6%, up 740 bps, propelled by higher volume, favorable pricing, and productivity improvements, despite investments in capacity expansion. The equipment backlog grew by $2 bln, reflecting robust demand in North America, Europe, and Asia, while the segment’s outlook was upgraded to ~20% organic revenue growth and 13-15% EBITDA margin for FY25, underscoring its role as a key growth driver amid rising grid infrastructure investments.
• The Wind segment, a persistent laggard due to regulatory headwinds and tariff impacts, showed mixed results. Revenue increased 9% to $2.2 bln, driven by higher onshore wind deliveries, but segment EBITDA losses widened to $(165) mln from $(117) mln a year earlier, primarily due to elevated onshore wind services costs and tariffs affecting offshore wind. The company invested over $100 mln to improve its ~57,000 wind turbine installed base, aiming to enhance performance, but offshore wind challenges, including prior blade manufacturing issues, continue to weigh on profitability.
• Management noted that FY25 EBITDA losses are trending toward the lower end of the $200-$400 million range, with onshore wind margins expected to improve to high single digits, signaling cautious optimism for recovery.

GEV’s Q2 results highlight robust demand in its Power and Electrification segments, driven by global electrification and decarbonization trends. The company’s ability to grow its backlog and expand margins despite tariff pressures positions it as a leader in the energy transition, with strong growth prospects in gas power and grid infrastructure.