MW GE Vernova says tariff impact will be less than thought, and the stock soars toward two records

By James Rogers

GE Vernova reports better-than-expected second-quarter results and raises its full-year outlook

GE Vernova Inc.'s stock rose into record territory Wednesday, after the power and renewable-energy company lowered its expectation for the impact of President Donald Trump's tariffs.

The company also reported second-quarter earnings that beat expectations, with revenue from all three business segments - power, wind and electrification - topping forecasts. The full-year outlook was also raised.

The stock $(GEV.AU)$ shot up 14.2% in morning trading, toward its biggest-ever one-day gain. The rally put the stock on track to close at the highest price since it started trading in March 2024, after the company was spun off from the former General Electric, now GE Aerospace (GE).

Earlier this year, energy stocks, including GE Vernova, took a hit from Trump's tariff agenda, as well as his public disdain for wind power. One of Trump's first executive orders after his inauguration in January was to withdraw from offshore wind leasing in certain areas and to review the government's leasing practices for wind projects.

On Wednesday, the Cambridge, Mass.-based GE Vernova said that it now expects the negative impact of tariffs in 2025 to be at the lower end of approximately $300 million to $400 million. In April, GE Vernova estimated a $300 million to $400 million tariff impact.

Speaking during a conference call to discuss the results, GE Vernova Chief Executive Scott Strazik said the company had a "productive" second quarter and cited continued strength in gas-power demand, as well as higher turbine prices.

Set against this backdrop, GE Vernova raised its 2025 financial guidance and now expects revenue to be at the higher end of the previously provided range of $36 billion to $37 billion.

GE Vernova also raised its free cash flow guidance to between $3 billion and $3.5 billion, up from its prior outlook of $2 billion to $2.5 billion.

For the second quarter to June 30, the company reported net income of $492 million, or $1.86 a share, down from net income of $1.28 billion, or $4.65 a share, in the prior year's quarter. Analysts surveyed by FactSet were looking for earnings of $1.76 a share.

Revenue was $9.11 billion, up from $8.20 billion in the prior year's quarter and above the FactSet consensus estimate of $8.81 billion.

Among the company's business segments, orders revenue grew 6.8% to $4.76 billion, above the FactSet consensus of $4.64 billion, and wind revenue climbed 8.9% to $2.25 billion, to beat expectations of $2.2 billion. Electrification revenue jumped 23% to $2.2 billion, also above expectations of $2.11 billion.

GE Vernova shares have rocketed 90.6% in 2025, making the stock the S&P 500 index's SPX second-best performer this year, behind just the 98.7% rally in Palantir Technologies Inc. (PLTR). The S&P 500 has gained 7.5% in 2025.

-James Rogers

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July 23, 2025 10:17 ET (14:17 GMT)

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