In This Article:
By Vallari Srivastava
(Reuters) -GE Vernova reported first-quarter revenue that beat analysts' estimates on the back of strength in its power and electrification units, sending the company's shares up nearly 9% on Wednesday.
The results come at a time when the power industry is bracing for the impact of the Trump administration's policies and sweeping tariffs, which have disrupted supply chains, raised costs and threatened the future of offshore wind projects.
The power equipment maker reaffirmed its annual revenue forecast of $36 billion to $37 billion, but added that it includes a cost impact of $300 million to $400 million due to tariffs.
Nearly a quarter of GE Vernova's annual spending would be impacted by tariffs and steel-related costs, the company said on a conference call.
The company added that its offshore wind business is the most exposed to tariffs. The unit is already facing challenges such as project delays, higher costs and supply chain issues.
For the first quarter, the business reported a core loss of $146 million as orders dropped 44% to $640 million.
GE Vernova, which became independent last year following a three-way split of General Electric, reported total orders of $10.2 billion in the quarter, up roughly 8%.
Core profit at the electrification segment more than tripled to $214 million in the first quarter, while the power segment, GE Vernova's largest unit, reported core profit of $508 million compared with $345 million a year earlier.
The company also added 7 gigawatts (GW) of gas turbine orders, bringing its gas power backlog to 29 GW, driven by a surge in electricity demand.
GE Vernova reported revenue of $8.03 billion in the quarter, compared with the average analyst estimate of $7.54 billion, according to data compiled by LSEG.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Shounak Dasgupta)