GE Vernova delivered solid financial performance in the fourth quarter and full year 2025, driven by strong demand across Power and Electrification and a sharp increase in orders that lifted its backlog to record levels.
In Q4 2025, GE Vernova reported revenue of $11 billion, up 4 percent year over year. Full-year 2025 revenue reached $38.1 billion, representing growth of 9 percent. Orders surged to $22.2 billion in the fourth quarter, up 65 percent, while full-year orders totaled $59.3 billion, an increase of 34 percent.
The company said full-year order growth was driven by robust equipment demand in Power and Electrification, alongside services growth across all segments. GE Vernova ended 2025 with a backlog of $150 billion, supported by improved equipment margins.
CEO Scott Strazik said the company is entering 2026 with significant momentum, supported by its expanding backlog and advanced portfolio of solutions positioned to serve the long-cycle global electric power market.
Power Segment Fueled by Gas Equipment Demand
The Power segment recorded orders of $32.8 billion in 2025, up 52 percent organically. Revenues increased to $19.8 billion, up 9 percent year over year and 10 percent organically, driven primarily by Gas Power.
Segment EBITDA margin expanded by 220 basis points, or 100 basis points organically. During the fourth quarter, GE Vernova signed 24 gigawatts of new gas equipment contracts, including 21 gigawatts of slot reservation agreements and 3 gigawatts of firm orders.
The company converted 8 gigawatts of existing slot reservations into orders and shipped 3 gigawatts of equipment. As a result, gas power backlog grew from 33 gigawatts to 40 gigawatts, while slot reservation agreements increased from 29 gigawatts to 43 gigawatts.
Wind Segment Sees Mixed Performance
The Wind segment reported orders of $7.7 billion in 2025, up 8 percent organically, supported by higher Onshore Wind demand. Revenues declined 6 percent to $9.1 billion, primarily due to Offshore Wind, partially offset by growth in Onshore Wind.
Segment EBITDA declined slightly, with margin down 50 basis points on a reported basis, while increasing 20 basis points organically. During the year, GE Vernova secured 1.1 gigawatts of onshore wind repowering orders in the United States.
Electrification Benefits From Grid Investment Boom
Electrification continued to outperform, with orders of $19.3 billion, up 21 percent organically, driven by strong global demand for grid equipment. Revenues rose to $9.6 billion, up 28 percent year over year and 26 percent organically, led by Grid Solutions.
Segment EBITDA margin expanded sharply by 590 basis points, or 560 basis points organically. Equipment backlog increased to $30.5 billion, up $10.5 billion or 53 percent year over year, supported by demand across Europe, the Middle East, North America, and Asia.
Investment in Capacity and R&D
GE Vernova invested $0.7 billion in capital expenditures in 2025, focusing on expanding production capacity in Power and Electrification. This forms part of its commitment to invest $6 billion in capital expenditures from 2025 through 2028, including $1 billion from Prolec GE between 2026 and 2028.
The company also funded $0.4 billion in research and development during the year, aligned with its plan to invest $5 billion in R&D from 2025 through 2028 to advance energy transition technologies.
Higher 2026 Guidance and Improved 2028 Outlook
GE Vernova raised its 2026 financial guidance and extended its outlook through 2028, incorporating the Prolec GE acquisition, which is expected to close on February 2, 2026 following regulatory approvals.
For 2026, the company now expects revenue of $44 billion to $45 billion, up from its previous outlook of $41 billion to $42 billion. Adjusted EBITDA margin is forecast at 11 percent to 13 percent, with free cash flow of $5.0 billion to $5.5 billion.
Segment guidance for 2026 includes organic revenue growth of 16 percent to 18 percent for Power, with segment EBITDA margin in the same range. Wind revenue is expected to decline by low double digits organically, with approximately $400 million in segment EBITDA losses. Electrification revenue is projected at $13.5 billion to $14.0 billion, including about $3 billion from Prolec GE, while maintaining segment EBITDA margin of 17 percent to 19 percent.
Looking ahead to 2028, GE Vernova now expects revenue of $56 billion, up from $52 billion previously, with low-teens organic growth, adjusted EBITDA margin of 20 percent, and cumulative free cash flow of at least $24 billion.
By segment, Power is expected to deliver high-teens organic revenue growth CAGR with a 22 percent EBITDA margin. Wind revenue is projected to decline at a low double-digit CAGR with a 6 percent margin. Electrification is forecast to achieve high-teens organic revenue growth CAGR, plus around $4 billion in revenue from Prolec GE, with segment EBITDA margin of 22 percent.
BABURAJAN KIZHAKEDATH