GE Vernova (NYSE:GEV) shares surged almost 15% after the energy company’s second quarter earnings beat expectations, driven by strong performance in its Power and Electrification segments.
Earnings per share (EPS) of $1.86 were significantly ahead of estimates of $1.50.
Revenue grew 11% year-over-year to $9.1 billion, ahead of analyst expectations of $8.8 billion.
The company also raised its full-year revenue, adjusted EBITDA margin, and free cash flow expectations.
It now expects revenue at the higher end of its earlier $36 billion to $37 billion guidance range, an adjusted EBITDA margin of 8% to 9%, up from the low end of its previous guidance of high-single digits.
Free cash flow is expected to be in the range of $3 billion to $3.5 billion, up from earlier guidance of $2 billion to $2.5 billion.
This guidance includes a tariff impact expected to be in the range of $300 million to $400 million.
“GE Vernova had a productive second quarter, positioning us well to continue to accelerate our growth and margin expansion from here,” GE Vernova CEO Scott Strazik said in a statement.
“We grew our backlog by more than $5 billion and increased our Gas equipment backlog and slot reservation agreements from 50 to 55 gigawatts. With strength in Power and Electrification, we are raising our revenue, adjusted EBITDA margin, and free cash flow expectations for the year.”
Shares of GE Vernova added 15% at about $631 late morning on Wednesday.