Key Moments
- Siemens Energy shares fell 8% after GE Vernova stock dropped 7% following its updated full-year revenue guidance.
- GE Vernova’s second quarter revenue came in at $11.10 billion, up 22% year over year and ahead of the $10.82 billion consensus estimate.
- GE Vernova lifted its full-year revenue and adjusted free cash flow forecasts, but the new outlook still undershot market expectations.
Siemens Energy Hit by Sector Read-Across
Investing.com — Siemens Energy shares declined 8% on Wednesday, reacting to weakness in peer GE Vernova, whose stock fell 7% after releasing an updated full-year outlook that did not meet market expectations. The setback at the natural-gas turbine maker weighed on sentiment across the broader power equipment space.
GE Vernova’s Second Quarter Performance
GE Vernova reported second quarter revenue of $11.10 billion, representing a 22% year-on-year increase and topping the Bloomberg consensus estimate of $10.82 billion. Earnings per share were $2.47, compared with $1.86 in the same quarter a year earlier.
| Metric | Q2 Result | YoY Change / Comparison | Consensus / Prior Period |
|---|---|---|---|
| Revenue | $11.10 billion | Up 22% YoY | $10.82 billion (Bloomberg consensus) |
| Earnings per share | $2.47 | Up from $1.86 | $1.86 (same quarter last year) |
| Adjusted EBITDA | $1.25 billion | – | $1.29 billion (estimate) |
| Net income | $649 million | Up 32% YoY | – |
| Adjusted free cash flow | $5.11 billion | Up from $194 million | $194 million (prior year period) |
Updated Full-Year Guidance Disappoints
Although GE Vernova raised its full-year revenue forecast, the updated range failed to satisfy investor expectations. The company now sees revenue between $45.5 billion and $46.5 billion, up from a previous outlook of $44.5 billion to $45.5 billion. Management also increased its adjusted free cash flow guidance to a range of $11.5 billion to $12.5 billion, compared with an earlier forecast of $6.5 billion to $7.5 billion, while reiterating its adjusted EBITDA margin target of 12% to 14%.
| Guidance Item | New Outlook | Prior Outlook |
|---|---|---|
| Full-year revenue | $45.5 billion – $46.5 billion | $44.5 billion – $45.5 billion |
| Adjusted free cash flow | $11.5 billion – $12.5 billion | $6.5 billion – $7.5 billion |
| Adjusted EBITDA margin | 12% – 14% | 12% – 14% |
Segment Results: Power, Wind, and Electrification
GE Vernova’s Power segment delivered revenue of $5.48 billion, an increase of 14% year over year, but slightly below the $5.56 billion market estimate.
Wind revenue declined 9.8% year over year to $2.03 billion, though this figure was stronger than the $1.87 billion consensus estimate.
The Electrification business recorded a sharp rise, with revenue jumping 68% year over year to $3.64 billion, beating the $3.38 billion estimate.
| Segment | Revenue | YoY Change | Estimate |
|---|---|---|---|
| Power | $5.48 billion | Up 14% YoY | $5.56 billion |
| Wind | $2.03 billion | Down 9.8% YoY | $1.87 billion |
| Electrification | $3.64 billion | Up 68% YoY | $3.38 billion |
Backlog and Capacity Outlook
CEO Scott Strazik said the company’s backlog stands at $176 billion, with Gas Power equipment backlog increasing from 100 to 116 gigawatts. The company anticipates reaching at least 125 gigawatts by year-end 2026.
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