GE Vernova (GEV) Morgan Stanley’s 13th Annual Laguna Conference summary

2025 outlook and financial performance

• Orders expected to reach $50 billion in 2025, with $37 billion in revenue at attractive margins as profitability improves.

• Gas power segment has 55 GW of new capacity on contract, expected to approach 60 GW by Q3.

• Electrification orders with hyperscalers to exceed $1 billion in 2025, with significant co-creation opportunities.

• Strong performance in Saudi Arabia, Algeria, and Korea, leveraging legacy relationships for electrification growth.

• Wind segment remains challenging, with onshore wind revenue potentially down 10%-15% in 2026 if order softness continues.

Industry trends and long-term growth

• Global energy demand is expected to grow exponentially, with a rising share of electricity in the energy mix.

• Company is positioning for a decade of action, focusing on electrification solutions to support decarbonization.

• Margin profiles in power and electrification are already trending toward or above 2028 financial guidance.

• Backlog growth is strong, with at least $13 billion added this year, supporting growth beyond 2028.

• Analyst Day will provide updated guidance and detail on investments and long-term growth trajectory.

Business segment evolution and opportunities

• Gas power install base to grow by at least 200 GW over the next decade, with new capacity primarily running baseload.

• Electrification business is entering a new growth phase, driven by organic investments and customer demand.

• Wind business is focused on automation and competitiveness to address current volume softness.

• Upgrades in gas install base projected to double by decade's end, with strong demand for services.

• Nuclear and grid software investments are expected to create substantial value in the 2030s.