GE Vernova (GEV) Q2 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 9:44 AM CDT 43 min read

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Wednesday, July 23, 2025 astatine 7:30 a.m. ET

• Chief Executive Officer — Scott L. Strazik

• Chief Financial Officer — Kenneth S. Parks

• Vice President, Investor Relations — Michael Jay Lapides

Scott L. Strazik: Thanks, Michael and bully morning, everyone. We had a productive 2nd quarter, positioning america good to proceed to accelerate our maturation and borderline expansion. This epoch of accelerated electrification is driving unprecedented investments successful reliable power, grid infrastructure and decarbonization solutions. We spot charismatic extremity markets converging with better-run businesses, giving america a important accidental to make worth from here. At the start, I conscionable privation to stock immoderate marketplace discourse arsenic I spot it today. Continued spot successful state powerfulness request arsenic we signed 9 gigawatts of caller state instrumentality contracts successful 2Q, of which 7 went into slot preservation agreements and 2 went straight into orders.

During the quarter, we besides converted 3 gigawatts of SRAs from erstwhile quarters into orders, portion shipping 5 gigawatts of equipment. This resulted successful backlog remaining astatine 29 gigawatts, portion increasing slot preservation agreements from 21 to 25 gigawatts, gathering our full backlog successful slot preservation agreements to 55 gigawatts from the 50 we talked astir astatine April earnings. We proceed to spot higher turbine prices and beardown request and inactive expect to person astatine slightest 60 gigawatts betwixt backlog and preservation agreements by the extremity of the twelvemonth astatine amended margins with important momentum into '26. But the powerfulness request isn't constricted to state caller units.

We besides spot coagulated services request maturation arsenic customers look to put successful their existing fleets. Not lone are we seeing spot successful state services, steam services orders were up 30% successful Q2, successful enactment of atomic extensions and upgrades and we booked importantly higher uprates successful hydro, which accrued 61%. We proceed to enactment hard to ramp our accumulation capableness astatine Gas Power and to conscionable this rising request for services crossed our fleet. We besides are pleased with the advancement successful our 300-megawatt tiny modular reactor which is portion of our higher R&D for this year. We are starting to spot the archetypal impervious points of our investment. We are successful operation successful Ontario connected the archetypal project.

The NRC has present formally accepted TVA's exertion to conception astatine Clinch River site, which means the ceremonial process has started and I expect much lawsuit announcements with our SMR exertion successful the 2nd fractional of the year. Continued advancement successful Electrification. We grew our instrumentality backlog an incremental $2 cardinal successful 2Q '25 led by Europe with North America and Asia backlogs some sequentially expanding astir 10%. Demand successful the Middle East is accelerating arsenic evidenced with our announcement connected the Saudi grid stabilization equipment, synchronous condensers. We expect astatine slightest $1.5 cardinal of this statement to go an bid successful the 3rd quarter.