GE Vernova raises annual forecasts, beats second-quarter profit estimates

By Katha Kalia and Sumit Saha

(Reuters) -Power equipment maker GE Vernova raised its full-year free cash flow forecast and beat Wall Street estimates for second-quarter profit on Wednesday, sending its shares up more than 13% to an all-time high.

GE Vernova, which became independent last year after a three-way split of General Electric, raised its free cash flow (FCF) target between $3 billion and $3.5 billion from earlier forecast of $2 billion to $2.5 billion, and expects 2025 revenue to trend towards the higher end of a range of $36 billion to $37 billion.

The forecast includes an impact of about $300 million to $400 million from U.S. President Donald Trump's currently outlined tariff policy.

GE Vernova also said it expects tariff cost outlook to remain unchanged for the rest of the year.

Jefferies analysts said the robust FCF target raise, which was more than 44% at midpoint, was a "positive surprise."

The upbeat forecasts come at a time when the power industry is bracing for an impact from Trump's shifting tariffs and policies, which have disrupted supply chains, raised costs and threatened the future of offshore wind projects.

GE Vernova posted second-quarter adjusted profit of $1.77 per share, beating analysts' estimate of $1.51, according to data compiled by LSEG, helped by strong performance in its power and electrification units.

According to the U.S. Energy Information Administration, power consumption will hit record highs in 2025 and 2026, driven by rapid expansions in AI and cryptocurrency data centers as well as increased demand from households and businesses.

Core profit from GE Vernova's power segment, which provides steam and gas turbines, jumped about 27% to $778 million, while the electrification unit's profit more than doubled to $332 million from a year ago.

(Reporting by Katha Kalia and Sumit Saha in Bengaluru; Editing by Shinjini Ganguli and Pooja Desai)

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