GE Vernova 2025 Annual Results: Power Conversion & Storage Up 22% to $2.05B

GE Vernova’s 2025 annual report (Form 10-K) covers its first full calendar year since its April 2, 2024 spin-off from General Electric. Energy storage is reported inside the Power Conversion & Storage business unit, whose revenue rose 22 % to $2.05 billion. The filing names energy storage as one of the reasons the Electrification segment’s backlog grew 48 %.

1. Headline numbers

GE Vernova’s revenue rose 9 % to $38.07 billion in 2025. Equipment revenue rose 10 % to $20.93 billion and services revenue 7 % to $17.13 billion.

Net income was $4.88 billion, against $1.56 billion in 2024. It includes an income tax benefit of $2.05 billion, which gave an effective tax rate of −72.5 % (2024: 37.6 %). Operating income was $1.39 billion, up from $471 million. Diluted earnings per share were $17.69.

Gross margin was 19.8 %, against 17.4 % in 2024. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a measure GE Vernova defines itself, rose 57 % to $3.20 billion. Operating cash flow was $4.99 billion, up from $2.58 billion. Research and development (R&D) funded by GE Vernova was $1.20 billion.

2. Power Conversion & Storage revenue

Power Conversion & Storage brought in $2.05 billion, up 22 % from $1.68 billion. It made up 21 % of Electrification segment revenue and 5 % of group revenue. The filing does not give a separate energy storage revenue line.

The unit was formed on January 1, 2025 by combining the Power Conversion and Solar & Storage Solutions business units. The filing restates earlier years to the new structure. It describes the unit as combining “advanced energy conversion and storage systems” with “a focus on industrial electrification, power stability, and energy storage solutions”.

The Electrification segment’s remaining performance obligations (RPO), the filing’s measure of backlog, rose 48 % to $34.67 billion. The filing names two causes:

• alternating current substation solutions, switchgear and transformers at Grid Solutions
• “synchronous condensers and energy storage at Power Conversion & Storage”

Segment revenue rose 26 % on an organic basis, mainly at Grid Solutions and “at Power Conversion & Storage”. The filing does not give a separate backlog or order figure for storage.

3. Margins

The filing reports no gross margin by segment or business unit. It gives segment EBITDA margin only.

The Electrification segment’s EBITDA margin rose 5.9 percentage points to 14.9 %. Segment EBITDA more than doubled, from $679 million to $1.43 billion. No margin is given for Power Conversion & Storage or for energy storage.

4. The rest of the group

GE Vernova reports three segments. Electrification, at $9.64 billion, grew fastest at 28 %. Grid Solutions, the largest unit in the segment, rose 34 % to $6.62 billion.

Revenue by segment

In Power, Gas Power revenue rose 11 % to $16.01 billion and Nuclear Power rose 24 % to $1.02 billion. In Wind, Onshore Wind rose 6 % to $8.24 billion, while Offshore Wind fell 53 % to $652 million. The Wind segment reported negative EBITDA of $598 million.

5. Factories and investment

GE Vernova runs 91 manufacturing facilities: 18 in the United States and 73 abroad. The Electrification segment uses 33 of them. The filing gives no production capacity for storage.

The filing states that Electrification is “making investments to expand our capacity and capabilities”, and that Gas Power is enhancing capacity at existing factories. Spending on property, plant, equipment and internal-use software was $1.28 billion in 2025. The company plans about $5 billion of cumulative R&D spending from 2025 through 2028.

GE Vernova announced on October 21, 2025 that it would buy the remaining 50 % of Prolec GE from Xignux for about $5.3 billion, to be paid half in cash and half from debt. The filing expected the deal to close in February 2026. Prolec GE has about 10,000 employees and seven factories, five of them in the United States.

6. Where GE Vernova sells

United States revenue rose 18 % to $17.34 billion, 46 % of the total. Revenue from outside the United States was $20.73 billion, 54 %.

Revenue by region

The filing gives no regional figures for Power Conversion & Storage. It does not name storage customers or projects.

7. Market context in the report

The filing states: “We expect significant growth in demand for the offerings we provide to the electric power industry.” It also reports:

• higher order growth for transmission equipment from data centers, artificial intelligence (AI) and grid modernization
• “Customer lead-times have increased as a result of demand outstripping supply”
• global tariffs cost about $250 million in 2025, after mitigation
• on December 22, 2025, the United States Department of the Interior paused leases for large offshore wind projects under construction, which affects the Vineyard Wind completion timeline

Among the trends it lists, grid modernization includes “integration of advanced generation and storage solutions”. The filing cites no third-party market data. It states that its installed base generates about 25 % of the world’s electricity.

8. Dividends, buybacks and other corporate events

The Board declared a dividend of $0.50 per share on December 9, 2025, payable February 2, 2026. Dividends paid in 2025 were $1.00 per share, $0.25 per quarter.

GE Vernova bought back 8.2 million shares for $3.3 billion in 2025. The buyback authorization was raised to $10.0 billion from $6.0 billion. Other events in the filing:

• binding agreements to sell the Proficy manufacturing software business and Linden VFT LLC, with the Proficy sale expected to close in the first half of 2026, according to the filing
• a restructuring plan approved July 21, 2025, expected to cost $225–250 million and save about $250 million from 2026
• credit rating upgrades from S&P Global Ratings (to BBB) and Fitch Ratings (to BBB+) in December 2025

9. Risks listed

The filing lists 45 risk factors. Those that refer to storage or equipment supply include:

• commercial success of new technologies, explicitly including “grid-scale batteries or other storage solutions”
• energy-transition dynamics, including “grid-scale storage”
• competition, including manufacturers from China and government-sponsored competitors
• supply chain disruptions, including critical materials, semiconductor chips and rare earths
• capacity expansions that may outpace demand
• fixed-price contracts, cost overruns and liquidated damages
• international trade policies and tariffs

The filing does not give storage revenue, shipments in GWh, storage margin, storage production capacity, battery cell suppliers, named storage products or projects, or financial guidance for 2026.

10. Key data

Group results

Electrification segment

11. Data notes

• Energy storage revenue. The filing has no storage revenue line. Storage is reported together with power conversion in Power Conversion & Storage, formed January 1, 2025 from the Power Conversion and Solar & Storage Solutions units. Prior years are restated.
• Backlog. RPO (remaining performance obligations) is the filing’s backlog measure. Electrification RPO splits into $30,508M equipment and $4,159M services.
• Net income and tax. The income statement shows a tax provision of $(2,051)M, a benefit (p.38). Pages 34 and 72 give a $2,062M benefit, which excludes Financial Services taxes according to footnote (g).
• Capital spending. “Additions to property, plant, and equipment and internal-use software” is $1,277M (p.40). “Property, plant, and equipment additions” is $1,253M (p.72). This article uses $1,277M.
• Segment splits. Equipment and services splits on pp.25–27 differ from Note 24 (p.71), which shows intersegment revenue ($487M) separately. Power Conversion & Storage 2023 revenue is $1,548M on p.27 and $1,549M on p.71.
• Dividends. $1.00 per share was paid in 2025 (p.22). $1.25 per share was declared in 2025 (p.42), including the $0.50 declared December 9, 2025.
• Non-standard measures. Adjusted EBITDA, organic revenue and free cash flow are measures GE Vernova defines outside generally accepted accounting principles.
• Our calculations. BESSmanufacturers calculated: Power Conversion & Storage growth (+22.3 %) and its share of segment (21 %) and group (5 %) revenue; growth rates of the business units; gross profit growth, gross margins and their change; growth in R&D and free cash flow; regional shares and regional growth rates.
• Page numbers are PDF page numbers:
  • headline numbers: pp.24–25, 27–28, 34, 38, 40
  • Power Conversion & Storage revenue: pp.6, 23–24, 27, 43, 71
  • margins: pp.25, 27, 33
  • rest of the group: pp.25–27, 71
  • factories and investment: pp.5–6, 21, 23, 28
  • where GE Vernova sells: p.73
  • market context: pp.4, 6, 23–24
  • dividends, buybacks and corporate events: pp.22, 28–29, 48, 64, 70
  • risks: pp.10–20

Sources