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Investing.com -- GE Vernova Inc. shares jumped 4.6% premarket on Wednesday after the company reported stronger-than-expected second-quarter results and raised its full-year guidance, citing robust demand for power and grid infrastructure solutions.
The company reported second quarter earnings of $1.86 per share, significantly exceeding analyst estimates of $1.50. Revenue reached $9.11 billion, surpassing the consensus forecast of $8.8 billion and representing an 11% increase (12% organically) compared to the same period last year. The strong performance was driven by growth in both equipment and services across its business segments.
"GE Vernova had a productive second quarter, positioning us well to continue to accelerate our growth and margin expansion from here," said CEO Scott Strazik. "We are at the beginning of an investment supercycle into more reliable baseload power, grid infrastructure and decarbonization solutions."
The company’s backlog grew by more than $5.2 billion sequentially, with Gas Power equipment backlog and slot reservation agreements increasing from 50 to 55 gigawatts. Power segment orders surged 44% organically, led by Gas Power equipment, while Electrification segment revenue jumped 23% (20% organically), primarily due to growth in grid solutions.
Based on its strong performance, GE Vernova raised its 2025 guidance, now expecting revenue to trend toward the higher end of its $36-37 billion range, compared to analyst consensus of $37 billion. The company also increased its adjusted EBITDA margin forecast to 8-9% from its previous high-single-digit guidance and significantly boosted its free cash flow outlook to $3.0-3.5 billion from $2.0-2.5 billion previously.
The company maintained a solid financial position with a $7.9 billion cash balance and returned $1.7 billion to shareholders year-to-date through share repurchases and dividends.
Wind remained the company’s most challenging segment, reporting a $165 million EBITDA loss due to higher Onshore Wind services costs and tariff impacts at Offshore Wind, though the company invested more than $100 million to improve performance of its wind turbine installed base.