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GE Vernova Beats on Revenue, Reaffirms Outlook as Orders Jump and Prolec Buyout Targets Grid Capacity

Investors are recalibrating after mixed results underscored multi‑year demand from electrification, data centers.

Overview

  • Q3 revenue reached $9.97 billion versus a $9.16 billion estimate as GAAP EPS of $1.64 missed the $1.92 consensus, with organic revenue up 10%.
  • Orders and backlog accelerated, including Power orders of about $7.8 billion (+50%), Electrification orders up roughly 102%, and a gas turbine pipeline growing to about 62 GW with most turbine slots sold through 2028.
  • Hyperscaler activity increased to roughly $900 million in year‑to‑date electrical equipment orders, with CEO Scott Strazik citing frequent talks with OpenAI’s Sam Altman and noting hyperscalers comprise about a third of paid reservations.
  • GE Vernova agreed to buy the remaining 50% of Prolec GE for about $5.275–$5.3 billion, expecting close by mid‑2026 pending approvals, bolstering North American transformer capacity and targeting about $3 billion of 2025 revenue and ~25% EBITDA margin at Prolec.
  • The company reaffirmed 2025 guidance toward the high end of $36–$37 billion in revenue with 8%–9% adjusted EBITDA margins and $3.0–$3.5 billion free cash flow, flagged $300–$400 million in tariff impacts, and saw shares swing after cautious capacity comments despite strong demand signals.