GE Vernova reports mixed Q3 results; reaffirms FY25 outlook

* GE Vernova press release [https://d18rn0p25nwr6d.cloudfront.net/CIK-0001996810/9e747905-2124-47e0-8707-5034ccdfc249.pdf] (NYSE:GEV [https://seekingalpha.com/symbol/GEV]): Q3 GAAP EPS of $1.64 misses by $0.22.
* Revenue of $9.97B (+11.9% Y/Y) beats by $810M.
* Orders of $14.6B, +55% organically, led by equipment at Power and Electrification.
* Backlog growth of $6.6B sequentially from equipment and services.
* Gas Power equipment backlog and slot reservation agreements grew from 55 to 62 GW.
* Adjusted EBITDA* of $0.8B and adjusted EBITDA margin of 8.1%.
* Cash from operating activities of $1.0B; free cash flow of $0.7B.
* $7.9B cash balance; $2.4B in capital returned to shareholders year-to-date.
* 2025 GUIDANCE: GE Vernova is reaffirming its 2025 financial guidance and expects revenue to trend towards the higher end of $36-$37 billion VS. $37.15B CONSENSUS, adjusted EBITDA margin of 8%-9%, and free cash flow of $3.0-$3.5 billion. Segment guidance is: • Power: 6%-7% organic revenue growth and 14%-15% segment EBITDA margin.
* Wind: Organic revenue down high-single digits, compared to prior expectations of down mid-single digits, and ~$400 million of segment EBITDA losses, changed from $200-400 million of segment EBITDA losses, trending towards the bottom of the range.
* Electrification: trending towards 25% organic revenue growth, up from prior expectations of approximately 20%, and 14%-15% segment EBITDA margin, raising to the lower end of prior expectations of 13-15%.
* The guidance includes the impact of tariffs as currently outlined and resulting inflation, which is estimated to be trending toward the lower end of approximately $300-$400 million, net of mitigating actions.

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