GE Vernova Inc.

10/22/2025 | Press release | Distributed by Public on 10/22/2025 04:39

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS. The following discussion and analysis of our financial condition and results of operations should be read in conjunction
with our consolidated and combined financial statements, which are prepared in conformity with U.S. generally accepted accounting
principles (GAAP), and corresponding notes included elsewhere in this QuarterlyReport on Form 10-Q. The following discussion and
analysis provides information that management believes to be relevant to understanding the financial condition and results of operations of
the Company for the three and nine months ended September 30, 2025and 2024. The below discussion should be read alongside Item 7.
"Management's Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated and combined
financial statements and corresponding notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Unless
otherwise noted, tables are presented in U.S. dollars in millions, except for per-share amounts which are presented in U.S. dollars. Certain
columns and rows within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from
the underlying numbers in millions. Unless otherwise noted, statements related to changes in operating results relate to the corresponding
period in the prior year.
In the accompanying analysis of financial information, we sometimes use information derived from consolidated and combined financial
data but not presented in our financial statements prepared in accordance with GAAP. Certain of these data are considered "non-GAAP
financial measures" under SEC rules. For the reasons we use these non-GAAP financial measures and the reconciliations to their most
directly comparable GAAP financial measures, see "-Non-GAAP Financial Measures."
Financial Presentation Under GE Ownership. We completed our separation from General Electric Company (GE), which now operates
as GE Aerospace, on April 2, 2024 (the Spin-Off). For further information, see Note 1 in the Notes to our audited consolidated and
combined financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Prolec GE. On October 21, 2025, we announced that GE Vernova will acquire the remaining fifty percent stake of Prolec GE, our
unconsolidated joint venture with Xignux. Prolec GE is a leading grid equipment supplier, producing transformers across most ratings and
voltages with approximately 10,000 global employees across seven manufacturing sites globally, including five in the U.S. Under the
purchase agreement, GE Vernova will pay approximately $5.3billion at closing, expected to be funded equally between cash and debt. The
acquisition is expected to close by mid-2026, subject to the completion of customary regulatory approvals.
Tariffs.Throughout 2025, the United States and other countries imposed global tariffs. These tariffs and any future tariffs will result in
additional costs to us. The current total estimated cost impact from the global tariffs as outlined is trending towards the lower end of
approximately$300 million to $400 million for the full year 2025, after taking into consideration contractual protections and mitigating
actions. The actual impact of the tariffs may be significantly different than our current estimate. Our estimate is subject to several factors
including the amount, duration, scope and nature of the tariffs, countermeasures that countries take, mitigating or other actions we take,
and contractual implications.
Power Conversion & Storage. Effective January 1, 2025, our Power Conversion and Solar & Storage Solutions business units within our
Electrification segment were combined to form a new business unit, Power Conversion & Storage. Historical financial information presented
within this report conforms to the new business unit structure within the Electrification segment.
TRENDS AND FACTORS IMPACTING OUR PERFORMANCE. We believe our performance and future success depends on a number of
factors that present significant opportunities for us but also pose risks and challenges, including those discussed below.
Our worldwide operations are affected by regional and global factors impacting energy demand, including industry trends like
decarbonization, an increasing demand for renewable energy alternatives, governmental regulations and policies, and changes in broader
economic and geopolitical conditions. These trends, along with the growing focus on the digitization and sustainability of the electricity
infrastructure, can impact performance across each of our business segments. We believe that our industry-defining technologies and
commitment to innovation position us well to capitalize on, as well as mitigate adverse impacts from, these long-term trends:
•Demand growth for electricity generation- Significant investment, infrastructure, and supply diversity will be essential to help meet
forecasted energy demand growth arising from population and global economic growth.
•Decarbonization- The urgency to combat climate change is fueling technology advancements that improve the economic viability and
efficiency of renewable energy alternatives and facilitate the transition to a more sustainable power sector.
•Evolving generation mix- The power industry is shifting from coal generation to more electricity generated from zero- or low-carbon
energy sources, and an evolving balance of generation sources will be necessary to maintain a reliable, resilient, and affordable
system.
•Energy resilience & security- Threats and challenges from extreme weather events, cyber-attacks, and geopolitical tensions have
increased focus on the strength and resilience of power generation and transmission and reinforced the need for a diversified mix of
energy sources.
•Grid modernization and investment- Increased demand and the integration of advanced generation and storage solutions drive the
need to update aging infrastructure with new grid integration and automation solutions.
•Regulatory and policy changes - Government policies and regulations, such as carbon pricing, renewable energy mandates, and
subsidies for renewable energy technologies, can significantly impact the power generation landscape. Staying ahead of regulatory
changes and adapting to new compliance requirements is crucial for maintaining a competitive advantage.
•Financial and investment dynamics- Access to capital and investment trends in the energy sector can influence the development and
deployment of new power generation projects. Understanding market dynamics and securing funding are key to progressing strategic
initiatives.
2025 3Q FORM 10-Q 26
RESULTS OF OPERATIONS
Summary of Results. RPO was $135.3 billionand $117.7 billionas of September 30, 2025and 2024, respectively. For the three months
ended September 30, 2025, total revenues were $10.0 billion, an increaseof $1.1 billionfor the quarter. Net income (loss) was $0.5 billion,
an increase of $0.6 billionin net income for the quarter, and net income (loss) margin was 4.5%. Diluted earnings (loss) per share was
$1.64for the three months ended September 30, 2025, an increasein diluted earnings per share of $1.99for the quarter. Cash flows from
(used for) operating activities were $2.5 billionand $1.7 billionfor the nine months ended September 30, 2025and 2024, respectively.
For the three months ended September 30, 2025, Adjusted EBITDA* was $0.8 billion, an increaseof $0.6 billion. Free cash flow* was $1.9
billionand $1.1 billionfor the nine months ended September 30, 2025and 2024, respectively.
RPO, a measure of backlog, includes unfilled firm and unconditional customer orders for equipment and services, excluding any purchase
order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. Services RPO includes the
estimated life of contract sales related to long-term service agreements which remain unsatisfied at the end of the reporting period,
excluding contracts that are not yet active. Services RPO also includes the estimated amount of unsatisfied performance obligations for
time and material agreements, material services agreements, spare parts under purchase order, multi-year maintenance programs, and
other services agreements, excluding any order that provides the customer with the ability to cancel or terminate without incurring a
substantive penalty. See Note 9in the Notes to the consolidated and combined financial statements for further information.
RPO
September 30, 2025
December 31, 2024
September 30, 2024
Equipment
$54,092
$43,047
$42,069
Services
81,177
75,976
75,678
Total RPO
$135,269
$119,023
$117,746
As of September 30, 2025, RPO increased $16.2 billion(14%) from December 31, 2024, primarily at Power, due to increases at Gas
Power due to Heavy-Duty Gas Turbine and Aeroderivative equipment and contractual services, and increases at Steam Power services
and Hydro Power equipment, partially offset by a decrease at Steam Power equipment;at Electrification, primarily due to demand for
switchgear, alternating current substation solutions, and transformers at Grid Solutions and synchronous condensers at Power Conversion
& Storage; partially offset at Wind, due to decreases in orders at Onshore Wind as U.S. customers dealt with policy uncertainty and
decreases at Offshore Wind as we continue to execute on our contracts. RPO increased $17.5 billion(15%) from September 30, 2024,
primarily at Power, due to increases at Gas Power equipment and services, and increases at Hydro Power equipment and Steam Power
services, partially offset by a decrease at Steam Power equipment; at Electrification, due to demand for switchgear, high-voltage direct
current solutions, alternating current substation solutions, andtransformers at Grid Solutionsand synchronous condensers at Power
Conversion & Storage; partially offset at Wind, due to decreases in orders at Onshore Wind as U.S. customers dealt with policy uncertainty,
as well as selectivity in the international market, and decreases at Offshore Wind as we continue to execute on our contracts.
Three months ended September 30
Nine months ended September 30
REVENUES
2025
2024
2025
2024
Equipment revenues
$5,880
$5,290
$14,971
$13,101
Services revenues
4,089
3,623
12,141
11,276
Total revenues
$9,969
$8,913
$27,112
$24,376
For the three months ended September 30, 2025, total revenues increased $1.1 billion(12%). Equipment revenues increased at
Electrification, primarily at Grid Solutions due to growth in high-voltage direct current solutions and switchgear volume and at Power
Conversion & Storage due to battery energy storage solutions; at Power, due to increases at Gas Power fromHeavy-Duty Gas Turbine
deliveries, project commissioning, and favorable price; partially offset at Wind, primarily at Offshore Wind due to the nonrecurrence of
revenues recorded on the settlement of a previously canceled project as well as charges for the impact of blade events, both in the third
quarter of 2024, partially offset by higher deliveries. Services revenues increased at Power, driven by Gas Power higher parts volume and
favorable price; and at Electrification and Wind.
Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*
increased $0.9 billion(10%), organic equipment revenues* increased $0.5 billion(10%) andorganic servicesrevenues* increased $0.4
billion(11%). Organic revenues*increased at Electrification and Power, partially offset at Wind.
For the nine months ended September 30, 2025, total revenues increased $2.7 billion(11%). Equipment revenues increased at
Electrification, primarily at Grid Solutions due to growth in high-voltage direct current solutions, switchgear, and alternating current
substation solutions volume and at Power Conversion & Storage; at Power, due to increases in Gas Power fromHeavy-Duty Gas Turbine
deliveries and favorable price, partially offset by lower Aeroderivative project commissioning. Wind equipment revenues were flat, primarily
due to an increase at Onshore Wind due to delivery of more units, offset at Offshore Wind due to the nonrecurrence of revenues recorded
on the settlement of a previously canceled project as well as charges for the impact of blade events, both in the third quarter of 2024.
Services revenues increased at Power, driven by Gas Power higher volume and favorable price; at Electrification, primarily due to growth at
Grid Solutions; and atWind due to higher transactional services.
Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*
increased $3.0 billion(12%), organic equipment revenues* increased $2.0 billion(16%) and organic services revenues* increased $1.0
billion(9%). Organic revenues*increased at Power, Electrification, and Wind.
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 27
Three months ended September 30
Nine months ended September 30
EARNINGS (LOSS)
2025
2024
2025
2024
Operating income (loss)
$366
$(359)
$787
$(122)
Net income (loss)
(99)
1,209
1,075
Net income (loss) attributable to GE Vernova
(96)
1,220
1,068
Adjusted EBITDA*
2,038
Diluted earnings (loss) per share(a)
$1.64
$(0.35)
$4.41
$3.85
(a)The computation of earnings (loss) per share for all periods through April 1, 2024was calculated using 274 millioncommon shares that
were issued upon Spin-Off and excludes Net loss (income) attributable to noncontrolling interests. For periods prior to the Spin-Off, the
Company participated in various GE stock-based compensation plans, and there were no dilutive equity instruments as there were no
equity awards of GE Vernova outstanding prior to Spin-Off.
For the three months ended September 30, 2025,operating income (loss) was $0.4 billion, a $0.7 billion increase, primarily due to: an
increase in segment results at Wind of $0.3 billion, primarily at Onshore Wind due to more profitable equipment, price, and productivity,
partially offset by the impact of tariffs, and increases at Offshore Wind due to lower contract losses, partially offset by the nonrecurrence of
a gain recorded on the settlement of a previously canceled project in the third quarter of 2024; at Electrification of $0.2 billion, primarily due
to volume, productivity, and favorable price at Grid Solutions; and at Power of $0.1 billion, primarily at Gas Power due to favorable price
and increased productivity, partially offset by additional expenses to support investments at Gas Power and Nuclear Power and the impact
of inflation.
Net income (loss) and Net income (loss) margin were $0.5 billionand 4.5%, respectively, for the three months ended September 30, 2025,
an increaseof $0.6 billionand 5.7%, respectively,for the quarter, primarily due to an increase in operating income (loss) of $0.7 billionand
an increase in other income (expense) - net of $0.1 billion, partially offset by an increase in provision for income taxes of $0.3 billion.
Adjusted EBITDA* and Adjusted EBITDA margin* were $0.8 billionand 8.1%, respectively, for the three months ended September 30,
2025, an increaseof $0.6 billionand 5.4%, respectively, primarily driven by increases in segment results at Wind, Electrification, and
Power.
For the nine months ended September 30, 2025,operating income (loss) was $0.8 billion, a $0.9 billion increase, primarily due to: an
increase in segment results at Electrification of $0.5 billion, primarily due to volume, productivity, and favorable price at Grid Solutions; at
Power of $0.5 billion, primarily at Gas Power and Steam Power due to favorable price, increased productivity, and higher volume, partially
offset by additional expenses to support investments at Nuclear Power and Gas Power and the impact of inflation; and at Wind of $0.2
billion, primarily at Onshore Wind due to an increase in the units delivered, partially offset by the impact of tariffs, and increases at Offshore
Wind due to lower contract losses, partially offset by the nonrecurrence of a gain recorded on the settlement of a previously canceled
project in the third quarter of 2024 and a termination of a supply agreement in the first quarter of 2025; partially offset bythe nonrecurrence
of $0.3 billion received related to an arbitration refund in the second quarter of 2024; the nonrecurrence of a $0.1 billion benefit related to
deferred intercompany profit that was recognized upon GE retaining the renewable energy U.S. tax equity investments in connection with
the Spin-Off; and higher corporate costs required to operate as a stand-alone public company.
Net income (loss) and Net income (loss) margin were $1.2 billionand 4.5%, respectively, for the nine months ended September 30, 2025,
an increaseof $0.1 billionand 0.1%, respectively,primarily due to an increasein operating income (loss) of $0.9 billion, partially offset by a
decrease in other income (expense) - net of $0.6 billiondriven by the nonrecurrence of a $0.9 billion pre-tax gainfrom the sale of a portion
of Steam Power nuclear activities to Electricité de France S.A. (EDF) in the second quarter of 2024 and an increase in provision for income
taxes of $0.2 billion.
Adjusted EBITDA* and Adjusted EBITDA margin* were $2.0 billionand 7.5%, respectively, for the nine months ended September 30, 2025,
an increaseof $1.1 billionand 3.6%, respectively, primarily driven by increases in segment results at Electrification, Power, and Wind.
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 28
SEGMENT OPERATIONS. Segment revenues include sales of equipment and services by our segments. Segment EBITDA is
determined based on performance measures used by our Chief Operating Decision Maker, who is our Chief Executive Officer (CEO), to
assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude certain non-cash
charges, such as depreciation and amortization, impairments and other matters, major restructuring programs, and certain gains and
losses from purchases and sales of business interests. Certain corporate costs, including those related to shared services, employee
benefits and information technology (IT), are allocated to our segments based on usage or their relative net cost of operations.
Three months ended September 30
Nine months ended September 30
SUMMARY OF REPORTABLE SEGMENTS
2025
2024
2025
2024
Power
$4,838
$4,206
$14,019
$12,696
Wind
2,647
2,891
6,742
6,592
Electrification
2,601
1,928
6,682
5,369
Eliminations and other
(119)
(112)
(330)
(281)
Total revenues
$9,969
$8,913
$27,112
$24,376
Segment EBITDA
Power
$645
$499
$1,931
$1,457
Wind
(61)
(317)
(373)
(607)
Electrification
Corporate and other(a)
(166)
(140)
(448)
(290)
Adjusted EBITDA*(b)
$811
$243
$2,038
$957
(a) Includes our Financial Services business and other general corporate expenses, including costs required to operate as a stand-alone
public company.
(b) See "-Non-GAAP Financial Measures" for additional information related to Adjusted EBITDA*. Adjusted EBITDA* includes interest and
other financial income (charges) and the benefit for income taxes of Financial Services as this business is managed on an after-tax
basis due to the nature of its investments.
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 29
POWER
Three months ended September 30
Nine months ended September 30
Orders in units
2025
2024
2025
2024
Gas Turbines
Heavy-Duty Gas Turbines
HA-Turbines
Aeroderivatives
Gas Turbine Gigawatts
7.4
5.1
19.6
14.1
Three months ended September 30
Nine months ended September 30
Sales in units
2025
2024
2025
2024
Gas Turbines
Heavy-Duty Gas Turbines
HA-Turbines
Aeroderivatives
Gas Turbine Gigawatts
4.0
3.3
12.2
7.1
RPO
September 30, 2025
December 31, 2024
September 30, 2024
Equipment
$18,977
$12,461
$11,392
Services
65,083
60,890
59,911
Total RPO
$84,060
$73,351
$71,303
RPO as of September 30, 2025 increased $10.7 billion(15%) from December 31, 2024, primarily at Gas Power due to Heavy-Duty Gas
Turbine and Aeroderivative equipment and contractual services, and increases at Steam Power services and Hydro Power equipment,
partially offset by a decrease at Steam Power equipment. RPO increased $12.8 billion(18%) from September 30, 2024, primarily at Gas
Power due to increases in equipment and services, and increases in Hydro Power equipment and Steam Power services, partially offset by
a decrease at Steam Power equipment.
Three months ended September 30
Nine months ended September 30
SEGMENT REVENUES AND EBITDA
2025
2024
2025
2024
Gas Power
$3,923
$3,466
$11,386
$9,966
Nuclear Power
Hydro Power
Steam Power
1,413
1,569
Total segment revenues
$4,838
$4,206
$14,019
$12,696
Equipment
$1,744
$1,426
$4,740
$3,912
Services
3,094
2,781
9,279
8,784
Total segment revenues
$4,838
$4,206
$14,019
$12,696
Segment EBITDA
$645
$499
$1,931
$1,457
Segment EBITDA margin
13.3
%
11.9
%
13.8
%
11.5
%
For the three months ended September 30, 2025, segment revenues were up $0.6 billion(15%) and segment EBITDA was up $0.1
billion(29%).
Segment revenues increased $0.6 billion(14%) organically*, primarily at Gas Power equipment due to increases in Heavy-Duty Gas
Turbine equipment deliveries, project commissioning, and favorable price, and at Gas Power services due to higher parts volume and
favorable price.
Segment EBITDA increased $0.1 billion(27%) organically*, primarily at Gas Power due to favorable price and increased productivity,
partially offset by additional expenses to support investments at Gas Power and Nuclear Power and the impact of inflation.
For the nine months ended September 30, 2025, segment revenues were up $1.3 billion(10%) and segment EBITDA was up $0.5
billion(33%).
Segment revenues increased $1.6 billion(13%) organically*, primarily at Gas Power equipment due to increases in Heavy-Duty Gas
Turbine equipment deliveries and favorable price, partially offset by lower Aeroderivative project commissioning, and increases in Gas
Power services due to higher volume and favorable price.
Segment EBITDA increased $0.3 billion(19%) organically*, primarily at Gas Power and Steam Power due to favorable price, increased
productivity, and higher volume, partially offset by additional expenses to support investments at Nuclear Power and Gas Power and the
impact of inflation.
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 30
WIND
Three months ended September 30
Nine months ended September 30
Onshore and Offshore Wind orders in units
2025
2024
2025
2024
Wind Turbines
Repower Units
Wind Turbine and Repower Units Gigawatts
0.9
1.2
2.7
3.8
Three months ended September 30
Nine months ended September 30
Onshore and Offshore Wind sales in units
2025
2024
2025
2024
Wind Turbines
1,103
1,108
Repower Units
Wind Turbine and Repower Units Gigawatts
2.1
2.4
5.1
5.1
RPO
September 30, 2025
December 31, 2024
September 30, 2024
Equipment
$8,782
$10,720
$12,182
Services
12,726
11,962
12,788
Total RPO
$21,508
$22,682
$24,969
RPO as of September 30, 2025 decreased $1.2 billion(5%) from December 31, 2024, primarily due to a decrease in orders at Onshore
Wind as U.S. customers dealt with policy uncertainty and decreases at Offshore Wind as we continue to execute on our contracts. RPO
decreased $3.5 billion(14%) from September 30, 2024, primarily due to decreases in orders at Onshore Wind as U.S. customers dealt with
policy uncertainty, as well as selectivity in the international market, anddecreases at Offshore Wind as we continue to execute on our
contracts.
Three months ended September 30
Nine months ended September 30
SEGMENT REVENUES AND EBITDA
2025
2024
2025
2024
Onshore Wind
$2,402
$2,355
$5,947
$4,974
Offshore Wind
1,183
LM Wind Power
Total segment revenues
$2,647
$2,891
$6,742
$6,592
Equipment
$2,203
$2,494
$5,412
$5,394
Services
1,331
1,198
Total segment revenues
$2,647
$2,891
$6,742
$6,592
Segment EBITDA
$(61)
$(317)
$(373)
$(607)
Segment EBITDA margin
(2.3)
%
(11.0)
%
(5.5)
%
(9.2)
%
For the three months ended September 30, 2025, segment revenues were down $0.2 billion(8%) and segmentEBITDA was up
$0.3 billion(81%).
Segment revenues decreased $0.3 billion (9%) organically*, primarily at Offshore Wind due to the nonrecurrence of revenues recorded on
the settlement of a previously canceled project of $0.5 billion as well as charges for the impact of blade events, both in the third quarter of
2024, partially offset by higher deliveries. This waspartially offset byincreases at Onshore Wind services.
Segment EBITDA increased $0.3 billion(99%) organically*, primarily at Onshore Wind due to more profitable equipment,price, and
productivity, partially offset by the impact of tariffs, and increases at Offshore Wind due to lowercontract losses of $0.5 billion, partially
offset by the nonrecurrence of a gain recorded on the settlement of a previously canceled project of $0.3 billion in the third quarter of 2024.
For the nine months ended September 30, 2025, segment revenues were up $0.2 billion(2%) and segment EBITDA was up $0.2
billion(39%).
Segment revenues increased $0.2 billion (2%) organically*, primarily at Onshore Wind in the U.S. market due to delivery of more units and
higher transactional services, partially offset by delivery of fewer units as selectivity continues in the international market, and decreases at
Offshore Wind due to the nonrecurrence of revenues recorded on the settlement of a previously canceled project of $0.5 billion as well as
charges for the impact of blade events, both in the third quarter of 2024.
Segment EBITDA increased $0.3 billion(47%) organically*, primarily at Onshore Wind due to an increase in the units delivered, partially
offset by the impact of tariffs, and increasesat Offshore Wind due to lower contract losses of $0.5 billion, partially offset by the
nonrecurrence of a gain recorded on the settlement of a previously canceled project of $0.3 billion in the third quarter of 2024 and a
termination of a supply agreement in the first quarter of 2025.
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 31
ELECTRIFICATION
RPO
September 30, 2025
December 31, 2024
September 30, 2024
Equipment
$26,455
$20,005
$18,624
Services
3,725
3,448
3,288
Total RPO
$30,179
$23,453
$21,912
RPO as of September 30, 2025 increased $6.7 billion(29%) from December 31, 2024, primarily due to demand for switchgear, alternating
current substation solutions, andtransformers at Grid Solutions and synchronous condensers at Power Conversion & Storage. RPO
increased $8.3 billion(38%) from September 30, 2024,primarily due to demand for switchgear, high-voltage direct current solutions,
alternating current substation solutions, and transformers at Grid Solutions and synchronous condensers at Power Conversion & Storage.
Three months ended September 30
Nine months ended September 30
SEGMENT REVENUES AND EBITDA
2025
2024
2025
2024
Grid Solutions
$1,747
$1,270
$4,591
$3,521
Power Conversion & Storage
1,413
1,202
Electrification Software
Total segment revenues
$2,601
$1,928
$6,682
$5,369
Equipment
$2,035
$1,451
$5,100
$3,967
Services
1,582
1,402
Total segment revenues
$2,601
$1,928
$6,682
$5,369
Segment EBITDA
$393
$201
$929
$396
Segment EBITDA margin
15.1
%
10.4
%
13.9
%
7.4
%
For the three months ended September 30, 2025, segment revenues were up $0.7 billion(35%) and segment EBITDA was up $0.2
billion(96%).
Segment revenues increased $0.6 billion(32%) organically*, primarily at Grid Solutions due to growth in high-voltage direct current
solutions and switchgear, and at Power Conversion & Storage due to battery energy storage solutions.
Segment EBITDA increased $0.2 billion organically*, primarily due to volume, productivity, and favorable price at Grid Solutions.
For the nine months ended September 30, 2025, segment revenues were up $1.3 billion(24%) and segment EBITDA was up $0.5
billion.
Segment revenues increased $1.3 billion(24%) organically*, primarily at Grid Solutions due to growth in high-voltage direct current
solutions, switchgear, and alternating current substation solutions volume and at Power Conversion & Storage.
Segment EBITDA increased $0.5 billion organically*, primarily due to volume, productivity, and favorable price at Grid Solutions.
OTHER INFORMATION
Gross Profit and Gross Margin. Gross profit was $1.9 billion and $1.1 billionfor the three months endedand $5.2 billionand $4.0 billion
for the nine months ended September 30, 2025and 2024, respectively. Gross margin was 19.0%and 12.4%for the three months ended
and 19.2%and 16.3%for the nine months ended September 30, 2025and 2024, respectively. The increase in gross profit for the quarter
was due to an increase at Wind primarily at Onshore Wind due to more profitable equipment, price, and productivity, partially offset by the
impact of tariffs, and increased at Offshore Wind due to lower incremental contract losses, partially offset by the nonrecurrence of a gain
recorded on the settlement of a previously canceled project in the third quarter of 2024; at Electrification due to higher volume, productivity,
and favorable price primarily at Grid Solutions; and at Power primarily at Gas Power and Steam Power from favorable price and increased
productivity,partially offset by the impact of inflation. The increase in gross profit for the year was due to increases at Electrification, Power,
and Wind due to the reasons described above, partially offset by a termination of a supply agreement in Offshore Wind in the first quarter of
2025.
Selling, General, and Administrative. Selling, general, and administrative costs were $1.2 billionfor both the three months endedand
$3.6 billionand $3.4 billionfor the nine months ended and comprised 12.3%and 13.8%of revenues for the three months endedand 13.3%
and 13.8%of revenues for the nine months ended September 30, 2025and 2024, respectively. Selling, general, and administrativecosts
were flat for the quarter, primarily due to cost reduction activities offset bylabor inflation. The decrease in costs for the year was attributable
to cost reduction initiatives, and the nonrecurrence of thesale of a portion of Steam Power nuclear activities to EDF, partially offset by the
nonrecurrence of $0.3 billion received related to an arbitration refund in 2024, higher stock-basedcompensation, labor inflation, and higher
corporate costs.
Restructuring Charges and Separation Costs. We continuously evaluate our cost structure and are implementing several restructuring
and process transformation actions considered necessary to simplify our organizational structure. In connection with the Spin-Off, we
incurred and will continue to incur certain one-time separation costs. In addition, in connection with the Spin-Off we recognized a benefit
related to deferred intercompany profit upon GE retaining the renewable energy U.S. tax equity investments in the second quarter of 2024.
See Note 22in the Notes to the consolidated and combined financial statements for further information.
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 32
Interest and Other Financial Income (Charges) - Net.Interest and other financial income (charges) - net was less than $0.1 billion in
incomefor both the three months ended and $0.1 billionin income for both the nine months ended September 30, 2025and 2024,
respectively.The increase in income for the quarter was driven by higher average balance of invested funds. The increase in income for the
year is driven by the reason described above, partially offset bythe nonrecurrence of interest income received from an arbitration refund in
2024.The primary components of net interest and other financial income (charges) are fees on cash management activities, interest on
borrowings, and interest earned on cash balances and short-term investments.
Income Taxes. Our effective tax rate was 39.2%and 29.8%for the three and nine months ended September 30, 2025, respectively. The
effective tax rate was higher than the U.S. statutory rate of 21%in both periodsprimarily due to losses providing no tax benefit in certain
jurisdictions and the finalization of the Company's pre-Spin-Offtax attributes that increased the Company's current provision for income
taxes, partially offset by an income tax benefit from stock-based compensation.
We recorded an income tax benefit on a pre-tax loss with an effective tax rate of 18.9%for the three months ended September 30, 2024.
The effective tax rate was lower than the U.S. statutory rate of 21% primarily due to a portion of the pre-tax loss providing no tax benefit in
certain jurisdictions.
We recorded an income tax expense on pre-tax income with an effective tax rate of 22.4%for the nine months ended September 30, 2024.
The effective tax rate was higher than the U.S. statutory rate of 21%primarily due to losses providing no tax benefit in certain jurisdictions,
partially offset by a lower effective tax rate on a foreign pre-tax gain from the sale of a portion of Steam Power nuclear activities to EDF
which was completedin the second quarter of 2024.
We regularly assess the realizability of our deferred tax assets based on all available evidence both positive and negative. Based on our
assessment of the realizability of our deferred tax assets as of September 30, 2025, we continue to maintain valuation allowances against
our deferred tax assets in the U.S. and certain foreign jurisdictions, primarily due to cumulative losses in those jurisdictions. Given the
current year profit and anticipated future profitability in the U.S., it is reasonably possible that the continued improvement in our U.S.
operations could result in the positive evidence necessary to warrant the release of a significant portion of our U.S. valuation allowance in
the fourth quarter of 2025. A release of the valuation allowance would result in the recognition of certain U.S. deferred tax assets and
a corresponding benefit in our provision for income taxes in the period the release occurs. See Note 15in the Notes to the consolidated
and combined financial statements for further information.
CAPITAL RESOURCES AND LIQUIDITY.Historically, we participated in cash pooling and other financing arrangements with GE to
manage liquidity and fund our operations. As a result of completing the Spin-Off, we no longer participate in these arrangements and our
Cash, cash equivalents, and restricted cash are held and used solely for our own operations. Our capital structure, long-term commitments,
and sources of liquidity have changed significantly from our historical practices. As of September 30, 2025, our Cash, cash equivalents, and
restricted cash was $7.9 billion, $0.4 billionof which was restricted use cash. In addition, we have access to a $3.0 billioncommitted
revolvingcredit facility (Revolving Credit Facility). See "-Capital Resources and Liquidity-Debt" for further information. We believe our
unrestricted cash, cash equivalents, future cash flows generated from operations, and committed credit facility will be responsive to the
needs of our current and planned operations for at least the next 12 months.
On September 25, 2025, the Board of Directors declared a $0.25per share quarterly dividend on our outstanding common stock, payable
on November 17, 2025, to stockholders of record as of October 20, 2025. On December 10, 2024, the Board of Directors authorized up to
$6 billion of common stock repurchases. In connection with this authorization, we repurchased 1.1million shares and 6.3million shares for
$0.7billion and $2.2billion during the three and nine months ended September 30, 2025, respectively. Although we intend to fund priorities
that profitably grow the company and return capital to stockholders through dividends and share repurchases as part of our capital
allocation strategy, we are not obligated to pay cash dividends or to repurchase a specified or any number or dollar value of shares under
our share repurchase program. The declaration of any future dividends is at the discretion of our Board of Directors and will be based on
our earnings, financial condition, cash requirements, prospects, and other factors. The amount and timing of any future share repurchases
under our share repurchase program will be based on the trading price and volume of our shares of common stock and other market
factors as well as our earnings, financial condition, cash requirements, prospects, alternative uses for our cash, and other factors.
Consolidated and Combined Statement of Cash Flows. The most significant source of cash flows from operations is customer-related
activities, the largest of which is collecting cash resulting from equipment or services sales. The most significant operating uses of cash are
to pay our suppliers, employees, tax authorities, and postretirement plans. We measure ourselves on a free cash flow* basis. We believe
that free cash flow* provides management and investors with an important measure of our ability to generate cash on a normalized basis.
Free cash flow* also provides insight into our ability to produce cash subsequent to fulfilling our capital obligations; however, free cash flow*
does not delineate funds available for discretionary uses as it does not deduct the payments required for certain investing and financing
activities.
We typically invest in property, plant, and equipment (PP&E) over multiple periods to support new product introductions and increases in
manufacturing capacity and to perform ongoing maintenance of our manufacturing operations. We believe that while PP&E expenditures
will fluctuate period to period, we will need to maintain a material level of net PP&E spend to maintain ongoing operations and growth of the
business.
Nine months ended September 30
FREE CASH FLOW (NON-GAAP)
2025
2024
Cash from (used for) operating activities (GAAP)
$2,508
$1,662
Add: Gross additions to property, plant, and equipment and internal-use software
(606)
(533)
Free cash flow (Non-GAAP)
$1,902
$1,129
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 33
Cash from operating activitieswas $2.5 billionand $1.7 billion for the nine months ended September 30, 2025and 2024, respectively.
Cash from operating activities increased by $0.8 billionin 2025compared to 2024, primarily driven by: higher net income (after adjusting for
depreciation of PP&E, amortization of intangible assets, and (gains) losses on purchases and sales of business interests) of $0.6 billion,
including the nonrecurrence of a $0.3 billion cash refund received in connection with an arbitration proceeding in the second quarter of
2024; an increase from contract liabilities and current deferred income of $0.8 billion, primarily due to higher down payments on orders and
slot reservation agreements at Power, and the nonrecurrence of the settlement of a previously canceled project at Offshore Wind in 2024,
partially offset by higher liquidations on projects at Onshore Wind; an increase from current receivables of $0.5 billion, primarily due to
highercollections, partially offset by higher billings; partially offset by a decrease from All other operating activities of $(0.8) billion, primarily
due to lower contract losses at Offshore Wind and an increase in long-term receivables related to advanced manufacturing credits; and a
decrease from current contract assets of $(0.4) billion, primarily due to revenue recognition exceeding billings.
Cash from operating activities of $2.5 billionfor the nine months ended September 30, 2025included a $1.8 billioninflow from changes in
working capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of
$2.4 billion, driven by down payments on orders and slot reservation agreements at Power, and down payments and collections at
Electrification, partially offset by higher net revenue recognition at Wind; accounts payable and equipment project payables of $0.6 billion,
driven by reductions in prepayments and purchases of materials outpacing disbursements primarily at Electrification; current receivables of
$0.6 billion, driven by lower billings and higher utilization of supplier advances at Wind, and collections outpacing billings at Power,
including a decrease in past dues; inventories of $(1.0) billion, primarily due to volume to support fulfillment and deliveries expected in the
fourth quarter of 2025 and in 2026 primarily at Gas Power and Onshore Wind; and current contract assets of $(0.7) billion, driven by
revenue recognition exceeding billings on our equipment and other service agreements.
Cash from operating activities of $1.7 billionfor the nine months ended September 30, 2024included a $0.9 billioninflow from changes in
working capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of
$1.7 billion, driven by down payments and collections on several large projects in Grid Solutions at Electrification, and net collections at
Power, partially offset by liquidations and the settlement of a previously canceled project at Wind; accounts payable and equipment project
payables of $0.6 billiondue to purchases of materials outpacing disbursements and reductions in prepayments, partially offset by
settlements of payables with GE prior to the Spin-Off; inventories of $(1.2) billion, primarily in Gas Power, to support fulfillment and
deliveries expected in the fourth quarter of 2024 and in 2025; and current contract assets of $(0.2) billion, driven by revenue recognition
exceeding billings on our equipment and other service agreements in Electrification and Power.
Cash from (used for) investing activitieswas $(0.4) billionand $0.1 billionfor the nine months ended September 30, 2025and 2024,
respectively. Cash used for investing activities increased by $0.5 billionin 2025compared to 2024primarily driven by: the nonrecurrence of
the Steam Power business sale of part of its nuclear activities to EDF in our Power segment of $0.6 billion; partially offset by higher sales of
and distributions from equity method investments of $0.2 billion, driven by the sale of an approximately 5%equity interest in China XD
Electric Co., Ltd. during 2025. Cash used for additions to PP&E and internal-use software, which is a component of free cash flow*, was
$0.6 billionand $0.5 billionfor the nine months ended September 30, 2025and 2024, respectively.
Cash from (used for) financing activitieswas $(2.6) billionand $3.5 billionfor the nine months ended September 30, 2025and 2024,
respectively. Cash used for financing activities increased by $6.1 billionin 2025 compared to 2024 primarily driven by: the nonrecurrence of
transfers from parentof $2.9 billion; cash settlements for share repurchases of $2.2 billion in 2025; the nonrecurrence of proceeds from the
sale of an approximately 16% equity interest in GE Vernova T&D India Ltd. in the third quarter of 2024 of $0.7 billion; and dividends paid of
$0.2 billion in 2025.
Material Cash Requirements. In the normal course of business, we enter into contracts and commitments that oblige us to make
payments in the future. See Notes 7and 21in the Notes to the consolidated and combined financial statements for further information
regarding our obligations under lease and guarantee arrangements as well as our investment commitments. See Note 13in the Notes to
the consolidated and combined financial statements for further information regarding material cash requirements related to our pension
obligations.
Debt.Total debt, excluding finance leases, was less than $0.1 billionand $0.1 billionas of September 30, 2025and December 31, 2024,
respectively. We have a $3.0 billionRevolving Credit Facility to fund near-term intra-quarter working capital needs as they arise. In addition,
we have a $3.0 billioncommitted trade finance facility (Trade Finance Facility, and together with the Revolving Credit Facility, the Credit
Facilities). The Trade Finance Facility has not been and is not expected to be utilized, and does not contribute to direct liquidity. We believe
that our financing arrangements, future cash from operations, and access to capital markets will provide adequate resources to fund our
future cash flow needs. For more information about the Credit Facilities, refer to our Current Report on Form 8-K, filed with the SEC on April
2, 2024, and see Note 21in the Notes to the consolidated and combined financial statements.
Credit Ratings and Conditions.We have access to the Revolving Credit Facility to fund operations, and we may rely on debt capital
markets in the future to further support our liquidity needs. The cost and availability of any debt financing is influenced by our credit ratings
and market conditions. Standard and Poor's Global Ratings (S&P) and Fitch Ratings (Fitch) have issued credit ratings for the Company. On
March 12, 2025, Fitch affirmed GE Vernova Inc.'s long-term credit rating and revised its outlook to Positive from Stable. On May 23, 2025,
S&P affirmed GE Vernova Inc.'s long-term credit rating and revised its outlook to Positive from Stable. Our credit ratings as of the date of
this filing are set forth in the following table.
S&P
Fitch
Outlook
Positive
Positive
Long-term
BBB-
BBB
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 34
We are disclosing our credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds
and access to credit. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each
rating should be evaluated independently of any other rating. See Item 1A. "Risk Factors-Risks Relating to Our Business and Our Industry
-Risks Relating to Operations and Supply Chain" and Item 1A. "Risk Factors-Risks Relating to Financial, Accounting, and Tax Matters" in
our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for a description of some of the potential consequences of a
reduction in our credit ratings.
If we are unable to maintain investment grade ratings, we could face significant challenges in being awarded new contracts, substantially
increasing financing and hedging costs, and refinancing risks as well as substantially decreasing the availability of credit. As of September
30, 2025, we estimated an insignificant liquidity impact of a ratings downgrade below investment grade.
Parent Company Credit Support. Prior to the Spin-Off, to support GE Vernova businesses in selling products and services globally, GE
often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments supporting the
performance of its subsidiary legal entities transacting directly with customers, in addition to providing similar credit support for non-
customer related activities of GE Vernova (collectively, the GE credit support). In connection with the Spin-Off, we are working to seek
novation or assignment of GE credit support, the majority of which relates to parent company guarantees, associated with GE Vernova
legal entities from GE to GE Vernova. For GE credit support that remained outstanding at the Spin-Off, GE Vernova is obligated to use
reasonable best efforts to terminate or replace, and obtain a full release of GE's obligations and liabilities under, all such credit support. GE
Vernova pays quarterly fees to GE which are determined by amounts associated with GE credit support. GE Vernova is subject to other
contractual restrictions and requirements while GE continues to be obligated under such credit support on behalf of GE Vernova. In
addition, while GE will remain obligated under the contract or instrument, GE Vernova will be obligated to indemnify GE for credit support
related payments that GE is required to make and possible related costs.
As of September 30, 2025, we estimated GE Vernova RPO and other obligations that relate to GE credit support to be approximately $10
billion, an over 71%reduction since the Spin-Off. We expect approximately $7 billionof the RPO related to GE credit support obligations to
contractually mature by December 31, 2029. The underlying obligations are predominantly customer contracts that GE Vernova performs in
the normal course of its business. We have no known instances historically where payments or performance from GE were required under
parent company guarantees relating to GE Vernova customer contracts.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS. In November 2024, the Financial Accounting Standards Board (FASB) issued
ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure about specific types of
expenses included in the expense captions presented on the face of the income statement as well as disclosure about selling expenses.
The ASU is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027,
with early adoption permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our consolidated
and combined financial statements.
In December 2023, the FASB issued ASU No. 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The
amendments require disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that
meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU is effective
for fiscal years beginning after December 15, 2024. We are currently evaluating the impact that this guidance will have on the disclosures
within our consolidated and combined financial statements. The Company will adopt the new annual disclosures as required for the fiscal
year ended December 31, 2025.
CRITICAL ACCOUNTING ESTIMATES.To prepare our consolidated and combined financial statements in accordance with U.S. GAAP,
management makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, including our contingent
liabilities, as of the date of our financial statements and the reported amounts of our revenues and expenses during the reporting periods.
Our actual results may differ from these estimates. We consider estimates to be critical (i) if we are required to make assumptions about
material matters that are uncertain at the time of estimation or (ii) if materially different estimates could have been made or it is reasonably
likely that the accounting estimate will change from period to period. See Item 7. "Management's Discussion and Analysis of Financial
Condition and Results of Operations-Critical Accounting Estimates" and Note 2 in the Notes to the audited consolidated and combined
financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 for additional discussion of
accounting policies and critical accounting estimates.
NON-GAAP FINANCIAL MEASURES. The non-GAAP financial measures presented in this QuarterlyReport on Form 10-Q are
supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition and operating
results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding
U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or
are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures
provide investors greater transparency to the information used by management for its operational decision-making and allow investors to
see our results "through the eyes of management." We further believe that providing this information assists our investors in understanding
our operating performance and the methodology used by management to evaluate and measure such performance. When read in
conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying
businesses and can be used by management as one basis for financial, operational, and planning decisions. Finally, these measures are
often used by analysts and other interested parties to evaluate companies in our industry.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by
other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from
company to company. In order to compensate for these and the other limitations discussed below, management does not consider these
measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers
should review the reconciliations below, and above with respect to free cash flow, and should not rely on any single financial measure to
evaluate our business. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable
U.S. GAAP financial measures follow.
2025 3Q FORM 10-Q 35
We believe the organic measures presented below provide management and investors with a more complete understanding of underlying
operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions, and foreign currency,
which includes translational and transactional impacts, as these activities can obscure underlying trends.
ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)
Revenue(a)
Segment EBITDA
Segment EBITDA margin
For the three months ended September 30
2025
2024
V%
2025
2024
V%
2025
2024
V pts
Power (GAAP)
$4,838
$4,206
15%
$645
$499
29%
13.3%
11.9%
1.4pts
Less: Acquisitions
-
-
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
Power organic (Non-GAAP)
$4,789
$4,204
14%
$596
$470
27%
12.4%
11.2%
1.2pts
Wind (GAAP)
$2,647
$2,891
(8)%
$(61)
$(317)
81%
(2.3)%
(11.0)%
8.7pts
Less: Acquisitions
-
-
-
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
(59)
(7)
Wind organic (Non-GAAP)
$2,619
$2,888
(9)%
$(2)
$(311)
99%
(0.1)%
(10.8)%
10.7pts
Electrification (GAAP)
$2,601
$1,928
35%
$393
$201
96%
15.1%
10.4%
4.7pts
Less: Acquisitions
-
(3)
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
(3)
Electrification organic (Non-GAAP)
$2,537
$1,922
32%
$399
$197
F
15.7%
10.2%
5.5pts
(a) Includes intersegment sales of $130 millionand $120 millionfor the three months ended September 30, 2025and 2024, respectively.
See Note 23in the Notes to the consolidated and combined financial statements for further information.
ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)
Revenue(a)
Segment EBITDA
Segment EBITDA margin
For the nine months ended September 30
2025
2024
V%
2025
2024
V%
2025
2024
V pts
Power (GAAP)
$14,019
$12,696
10%
$1,931
$1,457
33%
13.8%
11.5%
2.3pts
Less: Acquisitions
-
-
-
Less: Business dispositions
-
-
(41)
Less: Foreign currency effect
(31)
Power organic (Non-GAAP)
$13,969
$12,380
13%
$1,827
$1,529
19%
13.1%
12.4%
0.7pts
Wind (GAAP)
$6,742
$6,592
2%
$(373)
$(607)
39%
(5.5)%
(9.2)%
3.7pts
Less: Acquisitions
-
-
-
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
(15)
(7)
(72)
(41)
Wind organic (Non-GAAP)
$6,757
$6,599
2%
$(301)
$(566)
47%
(4.5)%
(8.6)%
4.1pts
Electrification (GAAP)
$6,682
$5,369
24%
$929
$396
F
13.9%
7.4%
6.5pts
Less: Acquisitions
-
(4)
-
Less: Business dispositions
-
-
-
-
Less: Foreign currency effect
-
Electrification organic (Non-GAAP)
$6,636
$5,356
24%
$924
$396
F
13.9%
7.4%
6.5pts
(a) Includes intersegment sales of $361 millionand $317 millionfor the nine months ended September 30, 2025and 2024, respectively.
See Note 23in the Notes to the consolidated and combined financial statements for further information.
Three months ended September 30
Nine months ended September 30
ORGANIC REVENUES (NON-GAAP)
2025
2024
V%
2025
2024
V%
Total revenues (GAAP)
$9,969
$8,913
12%
$27,112
$24,376
11%
Less: Acquisitions
-
-
Less: Business dispositions
-
-
-
Less: Foreign currency effect
Organic revenues (Non-GAAP)
$9,826
$8,902
10%
$27,031
$24,053
12%
2025 3Q FORM 10-Q 36
EQUIPMENT AND SERVICES ORGANIC
REVENUES (NON-GAAP)
Three months ended September 30
Nine months ended September 30
2025
2024
V%
2025
2024
V%
Total equipment revenues (GAAP)
$5,880
$5,290
11%
$14,971
$13,101
14%
Less: Acquisitions
-
-
-
-
Less: Business dispositions
-
-
-
Less: Foreign currency effect
Equipment organic revenues (Non-GAAP)
$5,792
$5,282
10%
$14,946
$12,923
16%
Total services revenues (GAAP)
$4,089
$3,623
13%
$12,141
$11,276
8%
Less: Acquisitions
-
-
Less: Business dispositions
-
-
-
Less: Foreign currency effect
Services organic revenues (Non-GAAP)
$4,034
$3,620
11%
$12,086
$11,129
9%
We believe that Adjusted EBITDA* and Adjusted EBITDA margin*, which are adjusted to exclude the effects of unique and/or non-cash
items that are not closely associated with ongoing operations, provide management and investors with meaningful measures of our
performance that increase the period-to-period comparability by highlighting the results from ongoing operations and the underlying
profitability factors. We believe Adjusted organic EBITDA* and Adjusted organic EBITDA margin* provide management and investors with,
when considered with Adjusted EBITDA* and Adjusted EBITDA margin*, a more complete understanding of underlying operating results
and trends of established, ongoing operations by further excluding the effect of acquisitions, dispositions, and foreign currency, which
includes translational and transactional impacts, as these activities can obscure underlying trends. We believe these measures provide
additional insight into how our businesses are performing on a normalized basis. However, Adjusted EBITDA*, Adjusted organic EBITDA*,
Adjusted EBITDA margin* and Adjusted organic EBITDA margin* should not be construed as inferring that our future results will be
unaffected by the items for which the measures adjust.
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (NON-GAAP)
Three months ended September 30
Nine months ended September 30
2025
2024
V%
2025
2024
V%
Net income (loss) (GAAP)
$453
$(99)
F
$1,209
$1,075
12%
Add: Restructuring and other charges
Add: (Gains) losses on purchases and sales of business interests(a)
(113)
-
(131)
(842)
Add: Separation costs (benefits)(b)
(64)
Add: Arbitration refund(c)
-
-
-
(254)
Add: Non-operating benefit income
(115)
(130)
(340)
(399)
Add: Depreciation and amortization(d)
Add: Interest and other financial (income) charges - net(e)(f)
(44)
(35)
(141)
(93)
Add: Provision (benefit) for income taxes(f)
(17)
Adjusted EBITDA (Non-GAAP)
$811
$243
F
$2,038
$957
F
Net income (loss) margin (GAAP)
4.5%
(1.1)%
5.6 pts
4.5%
4.4%
0.1 pts
Adjusted EBITDA margin (Non-GAAP)
8.1%
2.7%
5.4 pts
7.5%
3.9%
3.6 pts
(a) Includes unrealized (gains) losses related to our interest in China XD Electric Co., Ltd, recorded in Net interest and investment
income (loss) which is part of Other income (expense) - net. See Note 18for further information.
(b) Costs incurred in the Spin-Off and separation from GE, including system implementations, advisory fees, one-time stock option
grant, and other one-time costs. In addition, 2024 includes $136 million benefit related to deferred intercompany profit that was
recognized upon GE retaining the renewable energy U.S. tax equity investments.
(c) Represents a cash refund received related to an arbitration proceeding with a multiemployer pension plan and excludes $52 million
related to the interest on such amounts that was recorded in Interest and other financial charges - net.
(d) Excludes depreciation and amortization expense related to Restructuring and other charges. Includes amortization of basis
differences included in Equity method investment income (loss) which is part of Other income (expense) - net.
(e) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business
operations primarily with customers.
(f) Excludes interest expense (income) of zero and $(1) millionand benefit (provision) for income taxes of zero and $6 millionfor the
three months ended September 30, 2025and 2024, respectively, as well as excludes interest expense (income) of $(1) millionand
$11 millionand benefit (provision) for income taxes of $(4) millionand $70 millionfor the nine months ended September 30, 2025
and 2024, respectively, related to our Financial Services business which, because of the nature of its investments, is measured on
an after-tax basis.
*Non-GAAP Financial Measure
2025 3Q FORM 10-Q 37
ADJUSTED ORGANIC EBITDA AND ADJUSTED
ORGANIC EBITDA MARGIN (NON-GAAP)
Three months ended September 30
Nine months ended September 30
2025
2024
V%
2025
2024
V%
Adjusted EBITDA (Non-GAAP)
$811
$243
F
$2,038
$957
F
Less: Acquisitions
(1)
-
-
Less: Business dispositions
-
-
-
(41)
Less: Foreign currency effect
(21)
(77)
Adjusted organic EBITDA (Non-GAAP)
$833
$227
F
$2,010
$1,074
87%
Adjusted EBITDA margin (Non-GAAP)
8.1%
2.7%
5.4 pts
7.5%
3.9%
3.6 pts
Adjusted organic EBITDA margin (Non-GAAP)
8.5%
2.5%
6.0 pts
7.4%
4.5%
2.9 pts
See "-Capital Resources and Liquidity" for discussion of free cash flow*.
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