Despite offshore wind losses, GE Vernova raises annual forecasts following Q2 profit beat

Power equipment maker GE Vernova raised its current-year revenue and free cash flow forecast after beating Wall Street estimates for second-quarter profit on Wednesday, sending its shares rising more than four per cent in premarket trading.

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

The company also said its forecast includes an impact on the lower end of a $300 million to $400 million range from US President Donald Trump's tariffs, as currently outlined, and the resulting inflation.

The warning comes when the power industry is bracing for the impact of tariffs and policies, which have disrupted supply chains, raised costs and threatened the future of offshore wind projects.

The company also posted an adjusted profit of $1.77 per share, beating analysts' estimate of $1.51 per share, according to data compiled by LSEG, helped by strong performance in its power and electrification units.

According to the US 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, rose about 27 per cent to $778 million, while the electrification unit reported $332 million, more than double from a year ago.

However, the wind segment, which provides wind turbines, blades and services, reported a core loss of $165 million in the second quarter, hurt by higher service cost and the impact of tariffs at offshore wind.

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