VEON Ltd (VEON) Q4 2025 Earnings Call Transcript

Why It Matters

The accelerated backlog and cash generation position GE Vernova for sustained profitable growth, while wind‑related risks highlight the need for careful risk management.

Key Takeaways

• Backlog climbs to $150 B, up 25% YoY
• Orders hit $59 B, 34% growth, 2× book‑to‑bill
• Free cash flow $3.7 B, over double last year
• Prolec GE deal adds $3 B revenue, closing Feb 2
• Wind losses rise to $600 M from U.S. halt

Pulse Analysis

GE Vernova delivered a robust fourth‑quarter finish, pushing its total order backlog past $150 billion—a 25 percent jump that underscores the durability of long‑cycle power and electrification projects. The $59 billion of new orders, a 34 percent year‑over‑year increase, translated into a book‑to‑bill ratio near two, signaling demand outpacing deliveries. Revenue rose 9 percent to $38 billion, while adjusted EBITDA margin expanded to 11.4 percent, reflecting higher pricing and productivity gains across its core segments. The company also generated $3.7 billion of free cash flow, more than double the prior year, reinforcing its balance‑sheet strength.

The power and electrification divisions were the primary growth engines. Power equipment backlog swelled to 83 gigawatts, with slot‑reservation agreements pushing the pipeline toward 100 GW in 2026, and the segment posted a 16.9 percent EBITDA margin in Q4. Electrification’s backlog reached $35 billion, delivering a 26 percent revenue surge and a full‑year EBITDA margin of 14.9 percent, buoyed by grid‑modernization contracts and data‑center demand. The pending Prolec GE acquisition, slated to close on February 2, is expected to contribute roughly $3 billion of additional revenue in 2026, further diversifying the earnings base.

Wind remains the outlier, with offshore project delays in the United States inflating losses to $600 million for the year and prompting a $250 million revenue shortfall risk if the Vineyard Wind installation stalls. Despite a 53 percent jump in Q4 orders, the segment’s profitability is constrained by regulatory setbacks and tariff exposure. Investors should weigh the upside of GE Vernova’s expanding backlog and cash generation against the near‑term volatility in wind, while the raised 2026 guidance and 2028 outlook signal confidence in sustained, profitable growth.