GE Vernova Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Julian Mitchell - Barclays Services Corp - Analyst : Maybe I just wanted to start with the electrification segment. So a couple of different things there. One was just on the demand outlook. Maybe give a bit more color on the regional differences. It seems like Europe is maybe losing steam, Asia picking up. And pricing, I think in Europe, you talked about maybe softening the last 6 to 12 months. And then on the margin front at electrification, the updated guide for this year puts you close to touching distance of the medium-term margin goal. So maybe any thoughts around that and how you keep the discipline on big projects there?

Question: Mark Strouse - JPMorgan Chase & Co - Analyst : I wanted to pivot over to the gas power business. So a lot of investor focus on pricing that gets disclosed and in some of these deals on the equipment side. Curious what you can talk about on the service side, what you're seeing in pricing for your existing installed base, but also what you're seeing on new deals that are being signed? Thank you.

Question: Joe Ritchie - Goldman Sachs Group Inc - Analyst : Nice strong quarter again. I want to try to square something actually on your new equipment orders in Power. Saw that you guys booked roughly about a little over 5 gigawatts versus 7 gigawatts last quarter. But then I'm trying to square the revenue. The order dollars were up sequentially, roughly $700 million, and so how much -- I don't know if you can tell me how much of that is pricing versus the equipment that you booked in the other areas of your power business, whether it's hydro, steam, nuclear, et cetera?

Question: Nicole DeBlase - Deutsche Bank AG - Analyst : Can we just talk a bit about capacity. So I guess the Pennsylvania plant announcement for electrification, was that kind of already embedded in your thinking, like if we look at the 2028 revenue ramp? Or is this totally incremental? Anything you can give on what that means from a revenue perspective if it is incremental? And then any change to how you guys are thinking about capacity on the gas side relative to what you've already announced? Thank you.

Question: Nigel Coe - Wolfe Research LLC - Analyst : Scott, just wanted to put it back to services. Maybe a bit more color in terms of what you're seeing transactional CSA and upgrades. And in particular, any updated view on the potential for upgrades in the fleet? But I know it's one question, but I'd really like you to address the aero opportunity because big quarter for orders. You got the Crusoe deal hitting the tape, I think, yesterday. Where do you see the opportunity for aeros? And what is the ability to scale up this business in the sort of next one or two years?

Question: Andrew Obin - Bank of America - Analyst : Yeah, just a question. Why gross margin declining, particularly service gross margins. And I'll take one more in. Why is nuclear revenue declining? I totally appreciate that we have bright outlook here, but just what's the dynamic here? Thank you.