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GEV, GE Vernova Inc.

GE Vernova is the power business carved out of General Electric. It makes the heavy equipment that generates electricity and moves it — gas turbines, steam and nuclear equipment, the grid and electrification hardware that carries power to where it is used, and wind turbines. The customers are utilities, governments, and power producers, and the sales are large, long-cycle projects. Much of the lasting profit comes not from the first sale of a turbine but from the multi-decade contracts to service and supply parts for the machines already installed.

We design, manufacture, deliver, and service technologies to create a more reliable, secure, and sustainable electric power system, enabling electrification and decarbonization, underpinning the progress and prosperity of the communities we serve.

We are a purpose-built company, positioned with a unique scope and scale of solutions to help accelerate the energy transition, while servicing and growing our installed base and strengthening our own profitability and stockholder returns.

Latest annual: FY2025 10-K

GEV · GE Vernova Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$38.1B

+9.0% YoY · 9% 3-yr CAGR

Vital signs · TTM, with 4-yr average

Revenue $39.4B 4-yr avg $34.0B

Gross margin 20% 4-yr avg 16%

Operating margin 3.9% 4-yr avg −1.9%

ROIC 23% 4-yr avg 7%

Owner-earnings margin 19% 4-yr avg 3%

Free cash flow margin 19% 4-yr avg 3%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Products (55%) and Services (45%).
What moves the needle: The test that governs GE Vernova is whether the franchise lives in the installed base rather than the order book. Selling the equipment is long-cycle, project-based, and competitive — costly machines whose buyers commit on multi-year timelines — but a turbine, once installed, runs for decades and needs parts and servicing from a maker that knows it, and that aftermarket is where durable pricing power and steadier earnings would show. So the lever to weigh is the service backlog on the installed fleet against the lumpier, more contested business of winning new orders. The bad case is plain: heavy capital sunk into long projects, demand that rides the power-investment cycle and policy on how electricity is made, and a wind business whose economics differ sharply from the turbine and grid franchises. Judge the margins and the return on capital across a full cycle, not a single strong year of orders — the figures are in the record below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −3%, above 15% in 1 of 4 years). By owner earnings: roughly 3% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Drafted from the company's filings and reviewed by hand; every number is shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 2 lines, the largest Products at 55%.

Revenue by product line, FY2025

Products55%$20.9B
Services45%$17.1B

By geographyUnited States46%Europe20%Middle East and Africa14%Asia12%Americas8%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2022–2025

realized figures from each filing · older years to the left

2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
					Income statement
$29.7B	$33.2B	$34.9B	$38.1B	$39.4B	RevenueRevenue
12%	14%	17%	20%	20%	Gross marginGross mgn
18%	15%	13%	13%	13%	SG&A / revenueSG&A/rev
3%	3%	3%	3%	3%	R&D / revenueR&D/rev
($2.9B)	($923M)	$471M	$1.4B	$1.5B	Operating incomeOp. inc.
−9.7%	−2.8%	1.3%	3.6%	3.9%	Operating marginOp. mgn
($2.7B)	($438M)	$1.6B	$4.9B	$9.4B	Net incomeNet inc.
					Cash flow & returns
($114M)	$1.2B	$2.6B	$5.0B	$9.0B	Operating cash flowOp. cash
$779M	$724M	$895M	$615M	$632M	DepreciationDeprec.
$1.8B	$900M	$136M	($512M)	($993M)	Working capital & otherWC & other
$513M	$744M	$883M	$1.3B	$1.5B	CapexCapex
1.7%	2.2%	2.5%	3.4%	3.8%	Capex / revenueCapex/rev
($627M)	$442M	$1.7B	$3.7B	$7.5B	Owner earningsOwner earn.
−2.1%	1.3%	4.9%	9.7%	19.1%	Owner earnings marginOE mgn
($627M)	$442M	$1.7B	$3.7B	$7.5B	Free cash flowFCF
−2.1%	1.3%	4.9%	9.7%	19.1%	Free cash flow marginFCF mgn
—	$0	$0	$275M	$275M	Dividends paidDiv. paid
—	$0	$43M	$3.3B	—	BuybacksBuybacks
-24%	-12%	5%	60%	23%	ROICROIC
-24%	-6%	16%	44%	67%	Return on equityROE
—	−6%	16%	41%	65%	Retained to equityRetained/eq
					Balance sheet
$2.1B	$1.6B	$4.2B	$8.8B	$10.2B	Cash & investmentsCash+inv
—	—	$8.2B	$9.8B	$9.6B	ReceivablesReceiv.
—	$8.3B	$8.6B	$10.4B	$11.9B	InventoryInvent.
—	—	$5.0B	$5.7B	$6.3B	Accounts payablePayables
—	$8.3B	$11.8B	$14.5B	$15.2B	Operating working capitalOper. WC
—	$27.4B	$34.2B	$40.2B	$43.0B	Current assetsCur. assets
—	$29.3B	$31.7B	$41.0B	$48.1B	Current liabilitiesCur. liab.
—	0.9×	1.1×	1.0×	0.9×	Current ratioCurr. ratio
$4.2B	$4.4B	$4.3B	$4.4B	$9.9B	GoodwillGoodwill
—	$46.1B	$51.5B	$63.0B	$75.6B	Total assetsAssets
$11.6B	$7.4B	$9.5B	$11.2B	$13.9B	Shareholders’ equityEquity
					Per share
274M	274M	278M	276M	272M	Shares out (diluted)Shares
$108.23	$121.31	$125.67	$137.93	$144.76	Revenue / shareRev/sh
$-9.99	$-1.60	$5.58	$17.70	$34.47	EPS (diluted)EPS
$-2.29	$1.61	$6.12	$13.44	$27.67	Owner earnings / shareOE/sh
$-2.29	$1.61	$6.12	$13.44	$27.67	Free cash flow / shareFCF/sh
—	$0.00	$0.00	$1.00	$1.01	Dividends / shareDiv/sh
$1.87	$2.72	$3.18	$4.63	$5.47	Cap. spending / shareCapex/sh
$42.36	$27.07	$34.34	$40.50	$51.18	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	3-yr	5-yr
Revenue / share	+8.4%/yr	+8.4%/yr (3-yr)
Capital spending / share	+35.2%/yr	+35.2%/yr (3-yr)
Book value / share	−1.5%/yr	−1.5%/yr (3-yr)

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Services+7.2%
“Services revenues increased at Power, driven by Gas Power higher parts volume and favorable price; at Electrification, primarily due to growth at Grid Solutions; and at Wind due to higher transactional services.”
✓ direction matches the filed record

The record, charted

FY2022–2025

Each measure over its full record; the current point and the worst year marked.

Share count

276Mpeak FY2024

ROIC

60%low FY2022

Gross margin

20%low FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$3.7Bowner earningsvs.$4.9Bnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2023FY2025

Owner-earnings bridge

FY2022–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $4.9B of profit but $3.7B of owner earnings: $1.2B less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$4.9B

Owner earnings$3.7B · 10% of revenue

	FY2025	FY2024	FY2023	FY2022
Reported net income	$4.9B	$1.6B	($438M)	($2.7B)
Depreciation & amortizationnon-cash charge added back	+$615M	+$895M	+$724M	+$779M
Working capital & othertiming of cash in and out, other non-cash items	−$512M	+$136M	+$900M	+$1.8B
Cash from operations	$5.0B	$2.6B	$1.2B	($114M)
Capital expenditurecash put back in to keep running and to grow	−$1.3B	−$883M	−$744M	−$513M
Owner earnings	$3.7B	$1.7B	$442M	($627M)
Owner-earnings marginowner earnings ÷ revenue	10%	5%	1%	-2%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$8.8B

Net cash, debt-free

Cash $8.8B − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $8.8B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 150d

Long (60+ days)

DSO 94 + DIO 125 − DPO 68 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median 15%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 10%

Solid, recently turned positive

latest $3.7B = operating cash $5.0B − maintenance capex $1.3B; positive each of the last 3 years, after an earlier loss stretch (4-yr median 1%)

Industry peers: median 14%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 10% of revenue this year, a 1% median across 4 years.
Are earnings backed by cash? 1.02×

Cash-backed

Cash from ops $5.0B ÷ net income $4.9B

In the filing’s words The filing leans on adjusted, non-GAAP earnings, but the GAAP profit is itself cash-backed — the adjustments are not papering over a cash shortfall here.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 97%

Returns most of it

Dividends + buybacks $3.6B ÷ Owner Earnings $3.7B

What this means
Of $3.7B Owner Earnings, $3.6B (97%) went back to shareholders, $275M dividends, $3.3B buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 2.08×

Expanding

Capex $1.3B ÷ depreciation $615M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 2 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $38.1B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.98×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $7.44/share (latest year $18.18), the averaged base the calculator's gate runs on, and book value is $41.60/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2022–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 4

What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
Operating margin −6% → 2% (2-yr avg ends)

In the filing’s words The words confirm the number: the filing says price increases held their volume, and the margin widened with them — Buffett’s strongest mark of pricing power.

What this means
Through the cycle the operating margin widened — about −6% early to 2% lately, median −3% — pricing power intact or improving.
Worst year 2022 · −9.7% op. margin

What this means
Operations went underwater in 2022, understand why before trusting the good years.
Share count +0.2%/yr

What this means
Roughly flat share count, little dilution, little buyback.
Dividend record paid

What this means
Paid a dividend in 1 of the years on record.
How management talks about it Owner’s terms

What this means
The record and the register agree: capital is compounding and the filing reasons in an owner’s terms — per-share value, return on capital, the long term — not a promoter’s.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$43.0B

Cash & short-term investments$10.2B
Receivables$9.6B
Inventory$11.9B
Other current assets$11.3B

Current liabilities$48.1B

Accounts payable$6.3B
Other current liabilities$41.8B

Current ratio0.89×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.65×stricter: inventory excluded

Cash ratio0.21×strictest: cash alone against what's due

Working capital($5.1B)the cushion left after near-term bills

Revenue, latest quarter vs. a year ago+16.3%the freshest read on whether the business is still growing

Current ratio, recent quarters1.1× → 0.9×

Deeper floors

Tangible book value($476M)equity stripped of goodwill & intangibles

Net current asset value($17.6B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$844M$844M of it operating leases; with finance leases, “total fixed claims” below reaches $843M (annual-report basis)

Deferred revenue$31.9Bcustomer cash collected before delivery; operating float

From the company's latest filing.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, and what it adds to the debt on the page above.

'26$217M

'27$179M

'28$150M

'29$102M

'30$79M

later$276M

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$217Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$1.0Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$843Mthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$0

Lease obligations (present value)$843M

Total fixed claims on the business$843M

Counting the leases the way Buffett does, the fixed claims on this business come to $843M, of which the leases are 100%, more than the debt itself. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2022–2025

Over the record, the business generated $8.6B of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$3.4B · 40%
Dividends$275M · 3%
Buybacks$3.4B · 39%
Retained (debt / cash)$1.6B · 18%

Returned to owners$3.6B
70% of the owner earnings the business produced over the span, $275M as dividends and $3.4B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $8.1B.
Average price paid for buybacks$404.39
Across the years where the filing reports a share count, 8M shares were bought for $3.3B, about $404.39 each.
Net change in share count−0.7%
The diluted count barely moved (274M to 272M): buybacks roughly offset the stock issued to staff.
Dividend record$1.00/sh
Paid in 1 of the years on record. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio282:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.

Inverting the record

Invert: instead of why GE Vernova Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2022–2025.

None of the 3 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Electrical Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
INTCIntel Corporation	$52.9B	56%	23.4%	11%	15%
GEGE Aerospace	$45.9B	36%	-2.2%	-2%	6%
QCOMQUALCOMM Incorporated	$44.3B	57%	27.1%	28%	26%
GEVGE Vernova Inc.	$38.1B	16%	-0.7%	-3%	3%
MUMicron Technology Inc.	$37.4B	39%	24.4%	15%	20%
EMREmerson Electric Company	$18.0B	43%	15.3%	17%	14%
WHRWhirlpool	$15.5B	17%	5.4%	12%	3%
OTISOtis Worldwide Corporation Common Stock	$14.4B	—	14.5%	122%	10%
Group median	—	39%	14.9%	14%	12%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what GE Vernova Inc. has delivered.

GE Vernova Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, GE Vernova Inc. earns about $1.2B on its 3.1% median owner-earnings margin. This year’s 9.7% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($1.2B) Net of stock comp Steady-state · maintenance capex ($7.7B)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · since FY2023+190%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $7.5B on 269M shares outstanding, per the 10-Q cover, as of 2026-03-31; net cash $7.3B. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($1.5B) runs well above depreciation ($632M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $7.7B, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh GEV against another business →

Cite: Owner Scorecard, "GE Vernova Inc. (GEV), the owner's record," https://ownerscorecard.com/c/GEV, data as of 2026-07-09.

Manual order: ← GETY its page in the Manual GEVO →

Industry order: ← FLNC the Electrical Equipment chapter GNRC →