GE Vernova Q4 Profit Surges, Revenues Miss Street; Lifts FY Revenue View; Stock Down

(RTTNews) - GE Vernova Inc. (GEV), an energy equipment manufacturing and services company, Wednesday raised its revenue outlook for fiscal 2026 and 2028, which now includes the pending Prolec GE acquisition, following positive results in its fourth quarter. The company's quarterly profit surged from last year on a hefty tax benfit as well as higher revenues, which were below market estimates.

In pre-market activity, the shares were losing around 2.8 percent, trading at $675.07.

GE Vernova CFO Ken Parks stated, "We delivered a strong finish to 2025 as we executed our financial strategy, with robust quarterly orders, revenue growth, margin expansion, and significant free cash flow generation. … Given our strong free cash flow generation, we ended the quarter with a healthy cash balance of nearly $9 billion, which continues to give us confidence to invest in our core businesses and return cash to shareholders..."

In the quarter, the company announced its agreement to acquire the remaining fifty percent stake of Prolec GE, its joint venture with Xignux, for $5.275 billion. The deal received regulatory approvals, and is now expected to close on February 2.

Including the acquisition, the company now expects fiscal 2026 revenue of $44 billion to $45 billion, higher than previously expected $41 billion to $42 billion.

The Wall Street analysts on average expect the company to report revenues of $41.85 billion. Analysts' estimates typically exclude special items.

For 2026, adjusted EBITDA margin is expected to be 11 percent to 13 percent, and free cash flow of $5.0 billion to $5.5 billion, up from $4.5 billion to $5.0 billion projected earlier.

Further, for fiscal 2028, the company now expects revenue of $56 billion, up from $52 billion expected earlier, with low-teens organic growth. Adjusted EBITDA margin would be 20 percent, and cumulative free cash flow of at least $24 billion, up from at least $22 billion.

In the fourth quarter, GE Vernova's net income totaled $3.664 billion or $13.39 per share, significantly higher than $484 million or $1.73 per share last year.

The latest results included a $2.9 billion tax benefit due to a U.S. valuation allowance release.

Adjusted EBITDA was $1.158 billion with a margin of 10.6 percent, higher than last year's $1.079 billion and margin of 10.2 percent.

The company's revenue for the period rose 3.8 percent to $10.956 billion from $10.559 billion last year.

The Street expected revenues of $10.23 billion.

Orders were $22.2 billion in the quarter, up 65 percent organically with growth in all segments.

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