GE Vernova, General Electric Co (NYSE:GE)’s energy-focused business, reported solid revenue growth and order momentum in Q3, but its shares moved lower as earnings per share (EPS) fell short of Wall Street expectations.
Revenue for the quarter rose 12% year-over-year to $10 billion, surpassing Wall Street estimates of roughly $9.15 billion to $9.18 billion.
Orders increased 55% organically to $14.6 billion, and backlog expanded $6.6 billion sequentially, driven by equipment and services across Power and Electrification.
Despite the top-line strength, net income of $453 million, or $1.64 per share, missed analyst forecasts of $1.86 to $1.95.
Segment results were mixed. Power revenue grew 15% to $4.84 billion, Electrification revenue rose nearly 35% to $2.6 billion, while Wind revenue declined 8.4% to $2.65 billion. Gas Power equipment backlog and slot reservations increased from 55 GW to 62 GW.
"We delivered another strong quarter as we executed our financial strategy, with continued orders and revenue growth, significant margin expansion, and positive free cash flow,” GE Vernova CFO Ken Parks said.
“We expanded our backlog year-over-year and sequentially across equipment and services, with healthy equipment margin in backlog reflecting favorable price and our focus on disciplined underwriting.”
The company also reaffirmed its full-year 2025 guidance, targeting revenue toward the higher end of $36-$37 billion, adjusted EBITDA margin of 8% to 9%, and free cash flow of $3 $3.5 billion.
Segment guidance includes modest growth for Power, a high-single-digit decline in Wind revenue with segment EBITDA losses of around $400 million, and strong growth in Electrification with margins of 14% to 15%.
GE Vernova noted the guidance accounts for tariffs and inflationary pressures, estimated at $300-$400 million after mitigation measures.
Shares of GE Vernova traded down 5.5% at about $553 post-earnings.