GE Vernova (NYSE:GEV) executives highlighted strong order momentum across gas power and electrification in the company’s fourth-quarter and full-year 2025 earnings call, while also addressing incremental offshore wind losses tied to a U.S. government stop-work order issued late in the year. Management raised 2026 guidance to reflect the planned closing of the Prolec GE acquisition and pointed to a larger, higher-margin backlog as the foundation for multi-year profit and cash flow growth.
Backlog expands to $150 billion as orders surge
CEO Scott Strazik said GE Vernova ended 2025 with total backlog up more than 25%, or $31 billion, to $150 billion. CFO Ken Parks added that fourth-quarter orders totaled $22.2 billion, up 65% year-over-year, for a book-to-bill ratio of about 2x. Equipment orders rose 91% and service orders increased 22%, with all three segments posting order growth.
Parks said fourth-quarter revenue increased 2% year-over-year, with services growing across all three segments, while equipment revenue was flat as electrification and power growth offset lower wind revenue. Adjusted EBITDA rose 6% to $1.2 billion, and fourth-quarter free cash flow was $1.8 billion, supported by working capital that provided a $2.3 billion cash benefit, driven largely by down payments tied to power slot reservations and higher orders.
Gas power demand accelerates, with pricing strengthening
Management emphasized accelerating demand and pricing for gas equipment and services. Strazik said GE Vernova signed an incremental 6 GW of new gas contracts in the last three weeks of December, bringing total new gas contracts to 24 GW in the fourth quarter alone. He also said gas power equipment backlog and slot reservations rose sequentially from 62 GW to 83 GW, including orders increasing from 33 GW to 40 GW and slot reservation agreements (SRAs) increasing from 29 GW to 43 GW.
Looking ahead, Strazik said the company expects to reach approximately 100 GW under contract in 2026, assuming “high teens” GW of shipments and more than 30 GW of new contracts. In the Q&A, he said pricing in SRAs is running “another 10–20 points” higher than existing backlog pricing and suggested the mix could shift toward a larger proportion of firm orders in 2026.
Parks said Power orders grew more than 50% in 2025 and power revenue rose 10% for the year. Power EBITDA margins expanded 100 basis points to 14.7% for 2025. In the fourth quarter, power orders increased 77% year-over-year, led by gas power equipment orders that tripled. The company booked 41 heavy-duty gas turbines in the quarter, including 15 HA units, and secured orders for 18 aeroderivative units. Fourth-quarter power EBITDA margin expanded 100 basis points to 16.9%, driven by price and productivity, partially offset by capacity investment expenses, nuclear R&D, and inflation.
Strazik also described competitive dynamics, saying the company does not view smaller turbine offerings as direct competition for heavy-duty units when customers underwrite 20-year economics, though he acknowledged smaller units may “do very good business” in the near term. Management said GE Vernova also participates in the aeroderivative market, noting orders for about 63 aeroderivative units last year.
Electrification posts record quarter as data center demand rises
Electrification was another focus, with management citing broad-based demand tied to grid stability, rising electricity needs, and data centers. Strazik said Electrification delivered more than 25% revenue growth in 2025 and posted its largest order quarter in segment history in the fourth quarter. He also said more than $2 billion of electrification orders were signed directly for data centers in 2025, more than triple the 2024 total.
Parks reported electrification orders grew 21% and revenue increased 26% in 2025. Electrification equipment orders continued to outpace revenue, pushing equipment backlog to $31 billion, up more than $10 billion from the fourth quarter of 2024. Segment EBITDA margins expanded 560 basis points to 14.9% for the year, driven by volume, price, and productivity.
In the fourth quarter, electrification orders increased 50% year-over-year to about $7.4 billion, or roughly 2.5 times revenue, driven by demand for grid equipment including synchronous condensers, substations, and switchgear. Revenue rose 32%, and EBITDA increased 63%, with margin expanding 320 basis points to 17.1%.
In the Q&A, Strazik said the company believes its ability to link power generation solutions with electrical equipment provides a differentiated offering, rather than simply “drafting on a larger market.” He also reiterated operational focus, including a plan to double transformer and switchgear output from 2024 to 2028.
Offshore wind stop-work order drives higher losses; onshore demand remains uncertain
GE Vernova said it recorded an incremental accrual in the fourth quarter related to the Vineyard Wind project after the U.S. government issued a stop-work order on Dec. 22 halting offshore wind activity. Parks said wind losses for 2025 were approximately $600 million, above the company’s prior expectation of about $400 million discussed at its December investor event, attributing the change to the stop-work order and the associated estimated incremental contract losses from extending installation work.
Parks said Vineyard Wind has 62 turbines in total and, at the time of the stop-work order, only 10 turbines needed blades and one turbine remained to be installed. He added that GE Vernova was unable to execute the project while the order was in place, and said the resulting incremental costs were excused under a force majeure declaration prompted by government action. Management also noted that Vineyard Wind received an injunction of the stop-work order “yesterday” and said that if permission to resume work comes soon, the company would work to complete installation of the remaining turbines by the end of March, before losing access to a required installation vessel.
Parks warned that if the remaining 11 turbines cannot be installed, 2026 wind revenue could be negatively impacted by about $250 million because the company would be unable to bill the customer for those turbines. However, he said GE Vernova does not anticipate significant additional negative EBITDA impacts for Vineyard Wind beyond the amounts already recorded, citing contract loss accruals and protections from incremental costs tied to the stop-work order.
More broadly, Parks said fourth-quarter wind revenue declined 25% year-over-year, and the segment posted a $225 million EBITDA loss in the quarter. Wind orders increased 53% year-over-year, mainly due to improved onshore equipment orders outside North America, but management said it remains difficult to call an inflection point in U.S. onshore orders due to permitting delays and tariff uncertainty.
Prolec GE acquisition, capital returns, and updated outlook
Strazik said all required approvals for the Prolec GE acquisition were received quickly, enabling GE Vernova to close on Monday, Feb. 2. Parks said the company expects to issue roughly $2.6 billion of debt in early February to complete the purchase of the remaining 50% stake and expects to remain below 1x gross debt to adjusted EBITDA after the issuance.
Management also highlighted capital allocation actions, including returning $3.6 billion to shareholders in 2025 and repurchasing more than 8 million shares. The company said it is doubling its dividend in 2026 versus 2025 and increasing its stock buyback authorization to $10 billion from the previously approved $6 billion program.
GE Vernova raised 2026 guidance to include Prolec GE for 11 months:
- Revenue: $44 billion to $45 billion (up from $41 billion to $42 billion)
- Adjusted EBITDA margin: 11% to 13%
- Free cash flow: $5.0 billion to $5.5 billion (up from $4.5 billion to $5.0 billion)
By segment, the company reiterated expectations for 16% to 18% organic revenue growth in power with 16% to 18% EBITDA margins, and for electrification revenue of $13.5 billion to $14 billion (20% organic growth) plus about $3 billion from Prolec GE, with 17% to 19% EBITDA margins. For wind, management expects organic revenue to be down low double digits and EBITDA losses of about $400 million in 2026.
For its updated “by 2028” outlook, the company projected at least $56 billion of total revenue by 2028 (up from $52 billion) while maintaining a 20% adjusted EBITDA margin target. It also raised expected cumulative free cash flow generation from 2025 through 2028 by about $2 billion to at least $24 billion, incorporating nearly $1 billion of incremental CapEx from Prolec GE to support increased transformer production. Management said it is not including synergies from Prolec in the updated outlook.
About GE Vernova (NYSE:GEV)
GE Vernova is the energy-focused company formed from the energy businesses of General Electric and operates as a publicly listed entity on the NYSE under the ticker GEV. It is organized to design, manufacture and service equipment and systems used across the power generation and energy transition value chain, bringing together legacy capabilities in conventional power, renewables and grid technologies under a single corporate platform.
The company’s offerings span large-scale power-generation equipment such as gas and steam turbines and associated generators and controls, as well as renewable energy technologies including onshore and offshore wind platforms and hydro solutions.
