Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS**.** The following discussion and analysis of our financial condition and results of operations should be read in conjunction

with our consolidated and combined financial statements, which are prepared in conformity with U.S. generally accepted accounting

principles (GAAP), and corresponding notes included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and

analysis provides information that management believes to be relevant to understanding the financial condition and results of operations of

the Company for the three and six months ended June 30, 2025 and 2024. The below discussion should be read alongside Item 7.

"Management’s Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated and combined

financial statements and corresponding notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Unless

otherwise noted, tables are presented in U.S. dollars in millions, except for per-share amounts which are presented in U.S. dollars. Certain

columns and rows within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from

the underlying numbers in millions. Unless otherwise noted, statements related to changes in operating results relate to the corresponding

period in the prior year.

In the accompanying analysis of financial information, we sometimes use information derived from consolidated and combined financial

data but not presented in our financial statements prepared in accordance with GAAP. Certain of these data are considered “non-GAAP

financial measures” under SEC rules. For the reasons we use these non-GAAP financial measures and the reconciliations to their most

directly comparable GAAP financial measures, see "—Non-GAAP Financial Measures."

Financial Presentation Under GE Ownership. We completed our separation from General Electric Company (GE), which now operates

as GE Aerospace, on April 2, 2024 (the Spin-Off). For further information, see Note 1 in the Notes to our audited consolidated and

combined financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Tariffs. Throughout 2025, the United States and other countries imposed global tariffs. These tariffs and any future tariffs will result in

additional costs to us. The current total estimated cost impact from the global tariffs as outlined is approximately $300 million to $400 million

for the full year 2025, after taking into consideration contractual protections and mitigating actions. The actual impact of the tariffs may be

significantly different than our current estimate. Our estimate is subject to several factors including the amount, duration, scope and nature

of the tariffs, countermeasures that countries take, mitigating or other actions we take, and contractual implications.

Power Conversion & Storage. Effective January 1, 2025, our Power Conversion and Solar & Storage Solutions business units within our

Electrification segment were combined to form a new business unit, Power Conversion & Storage. Historical financial information presented

within this report conforms to the new business unit structure within the Electrification segment.

TRENDS AND FACTORS IMPACTING OUR PERFORMANCE. We believe our performance and future success depends on a number of

factors that present significant opportunities for us but also pose risks and challenges, including those discussed below.

Our worldwide operations are affected by regional and global factors impacting energy demand, including industry trends like

decarbonization, an increasing demand for renewable energy alternatives, governmental regulations and policies, and changes in broader

economic and geopolitical conditions. These trends, along with the growing focus on the digitization and sustainability of the electricity

infrastructure, can impact performance across each of our business segments. We believe that our industry-defining technologies and

commitment to innovation position us well to capitalize on, as well as mitigate adverse impacts from, these long-term trends:

  • Demand growth for electricity generation – Significant investment, infrastructure, and supply diversity will be essential to help meet

forecasted energy demand growth arising from population and global economic growth.

  • Decarbonization – The urgency to combat climate change is fueling technology advancements that improve the economic viability and

efficiency of renewable energy alternatives and facilitate the transition to a more sustainable power sector.

  • Evolving generation mix – The power industry is shifting from coal generation to more electricity generated from zero- or low-carbon

energy sources, and an evolving balance of generation sources will be necessary to maintain a reliable, resilient and affordable

system.

*•*Energy resilience & security – Threats and challenges from extreme weather events, cyber-attacks, and geopolitical tensions have

increased focus on the strength and resilience of power generation and transmission and reinforced the need for a diversified mix of

energy sources.

  • Grid modernization and investment – Increased demand and the integration of advanced generation and storage solutions drive the

need to update aging infrastructure with new grid integration and automation solutions.

  • Regulatory and policy changes – Government policies and regulations, such as carbon pricing, renewable energy mandates, and

subsidies for renewable energy technologies, can significantly impact the power generation landscape. Staying ahead of regulatory

changes and adapting to new compliance requirements is crucial for maintaining a competitive advantage.

  • Financial and investment dynamics – Access to capital and investment trends in the energy sector can influence the development and

deployment of new power generation projects. Understanding market dynamics and securing funding are key to progressing strategic

initiatives.

RESULTS OF OPERATIONS

Summary of Results. RPO was $128.7 billion and $115.5 billion as of June 30, 2025 and 2024, respectively. For the three months ended

June 30, 2025, total revenues were $9.1 billion, an increase of $0.9 billion for the quarter. Net income (loss) was $0.5 billion, a decrease of

$0.8 billion in net income for the quarter, and net income (loss) margin was 5.4%. Diluted earnings (loss) per share was $1.86 for the three

months ended June 30, 2025, a decrease in diluted earnings per share of $(2.78) for the quarter. Cash flows from (used for) operating

activities were $1.5 billion and $0.5 billion for the six months ended June 30, 2025 and 2024, respectively.

For the three months ended June 30, 2025, Adjusted EBITDA* was $0.8 billion, an increase of $0.2 billion. Free cash flow* was $1.2 billion

and $0.2 billion for the six months ended June 30, 2025 and 2024, respectively.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 26

RPO, a measure of backlog, includes unfilled firm and unconditional customer orders for equipment and services, excluding any purchase

order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. Services RPO includes the

estimated life of contract sales related to long-term service agreements which remain unsatisfied at the end of the reporting period,

excluding contracts that are not yet active. Services RPO also includes the estimated amount of unsatisfied performance obligations for

time and material agreements, material services agreements, spare parts under purchase order, multi-year maintenance programs, and

other services agreements, excluding any order that provides the customer with the ability to cancel or terminate without incurring a

substantive penalty. See Note 8 in the Notes to the consolidated and combined financial statements for further information.

RPOJune 30, 2025December 31, 2024June 30, 2024
Equipment$49,712$43,047$41,561
Services78,93875,97673,915
Total RPO$128,650$119,023$115,476

As of June 30, 2025, RPO increased $9.6 billion (8%) from December 31, 2024, primarily at Power, due to increases at Gas Power due to

Heavy-Duty Gas Turbine and Aeroderivative equipment and contractual services, and increases at Hydro Power equipment and Steam

Power services; at Electrification, primarily due to demand for switchgear, alternating current substation solutions, and transformers at Grid

Solutions; partially offset at Wind, due to a decrease in orders at Onshore Wind and at Offshore Wind as we continue to execute on our

contracts. RPO increased $13.2 billion (11%) from June 30, 2024, primarily at Power, due to increases in Gas Power equipment and

services, and increases in Hydro Power equipment and Steam Power services; at Electrification, due to demand for high-voltage direct

current solutions, switchgear, and alternating current substation solutions at Grid Solutions; partially offset at Wind, due to decreases at

Offshore Wind as we continue to execute on our contracts and the finalization of the settlement of a previously canceled project in the third

quarter of 2024, and decreases at Onshore Wind.

Three months ended June 30Six months ended June 30
REVENUES2025202420252024
Equipment revenues$4,894$4,194$9,091$7,811
Services revenues4,2174,0108,0527,652
Total revenues$9,111$8,204$17,143$15,463

For the three months ended June 30, 2025, total revenues increased $0.9 billion (11%). Equipment revenues increased at Electrification,

primarily at Grid Solutions due to growth in high-voltage direct current solutions, switchgear, and transformer equipment volume; at Power,

due to increases in Gas Power from Heavy-Duty Gas Turbine deliveries partially offset by lower Aeroderivative unit shipments; and at Wind,

primarily at Onshore Wind due to delivery of more units partially offset at Offshore Wind due to a slower pace of production. Services

revenues increased at Power, driven by higher Gas Power parts volume, and at Wind and Electrification.

Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*

increased $1.0 billion (12%), organic equipment revenues* increased $0.7 billion (18%), and organic services revenues* increased $0.2

billion (6%). Organic revenues* increased at Power, Electrification, and Wind.

For the six months ended June 30, 2025, total revenues increased $1.7 billion (11%). Equipment revenues increased at Electrification,

primarily at Grid Solutions due to growth in high-voltage direct current solutions, switchgear, and transformer equipment volume; at Power,

due to increases in Gas Power from Heavy-Duty Gas Turbine deliveries; and at Wind, primarily at Onshore Wind due to delivery of more

units partially offset at Offshore Wind due to a slower pace of production. Services revenues increased at Power, driven by Gas Power and

Steam Power higher volume in contractual and non-contractual services; at Electrification, primarily due to growth at Grid Solutions; and at

Wind.

Organic revenues* exclude the effects of acquisitions, dispositions, and foreign currency. Excluding these effects, organic revenues*

increased $2.1 billion (14%), organic equipment revenues* increased $1.5 billion (20%) and organic services revenues* increased $0.5

billion (7%). Organic revenues* increased at Power, Electrification, and Wind.

Three months ended June 30Six months ended June 30
EARNINGS (LOSS)2025202420252024
Operating income (loss)$378$527$421$238
Net income (loss)4921,2807561,174
Net income (loss) attributable to GE Vernova5141,2947681,164
Adjusted EBITDA*7705241,227714
Diluted earnings (loss) per share(a)$1.86$4.65$2.77$4.22

(a)The computation of earnings (loss) per share for all periods through April 1, 2024 was calculated using 274 million common shares that

were issued upon Spin-Off and excludes Net loss (income) attributable to noncontrolling interests. For periods prior to the Spin-Off, the

Company participated in various GE stock-based compensation plans, and there were no dilutive equity instruments as there were no

equity awards of GE Vernova outstanding prior to Spin-Off.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 27

For the three months ended June 30, 2025**,** operating income (loss) was $0.4 billion, a $0.1 billion decrease, primarily due to: the

nonrecurrence of $0.3 billion received related to an arbitration refund in the second quarter of 2024; the nonrecurrence of a $0.1 billion

benefit related to deferred intercompany profit that was recognized upon GE retaining the renewable energy U.S. tax equity investments in

connection with the Spin-Off; higher corporate costs required to operate as a stand-alone public company; and a slight decrease in

segment results at Wind of less than $0.1 billion, primarily at Onshore Wind services due to increased costs to improve fleet performance

and Offshore Wind due to the impact of tariffs, partially offset at Onshore Wind equipment due to an increase in units delivered and market

selectivity; partially offset by an increase in segment results at Electrification of $0.2 billion, primarily due to volume, productivity, and

favorable price at Grid Solutions; and at Power of $0.2 billion, primarily at Gas Power and Steam Power due to favorable price, higher

volume, and increased productivity partially offset by additional expenses to support investments at Gas Power and Nuclear Power and the

impact of inflation.

Net income (loss) and Net income (loss) margin were $0.5 billion and 5.4%, respectively, for the three months ended June 30, 2025, a

decrease of $0.8 billion and 10.2%, respectively, for the quarter, primarily due to a decrease in other income (expense) - net of $0.8 billion

driven by the nonrecurrence of a $0.9 billion pre-tax gain from the sale of a portion of Steam Power nuclear activities to Electricité de

France S.A. (EDF) in the second quarter of 2024 and a decrease in operating income (loss) of $0.1 billion, partially offset by a decrease in

provision for income taxes of $0.2 billion.

Adjusted EBITDA* and Adjusted EBITDA margin* were $0.8 billion and 8.5%, respectively, for the three months ended June 30, 2025, an

increase of $0.2 billion and 2.1%, respectively, primarily driven by increases in segment results at Electrification and Power, partially offset

at Wind.

For the six months ended June 30, 2025**,** operating income (loss) was $0.4 billion, a $0.2 billion increase, primarily due to: an increase in

segment results at Electrification of $0.3 billion, primarily due to volume, productivity, and favorable price at Grid Solutions; and at Power of

$0.3 billion, primarily at Gas Power and Steam Power due to favorable price, higher volume, and increased productivity partially offset by

the impact of inflation and additional expenses to support investments at Gas Power and Nuclear Power; partially offset by the

nonrecurrence of $0.3 billion received related to an arbitration refund in the second quarter of 2024; the nonrecurrence of a $0.1 billion

benefit related to deferred intercompany profit that was recognized upon GE retaining the renewable energy U.S. tax equity investments in

connection with the Spin-Off; higher corporate costs required to operate as a stand-alone public company; and a slight decrease at Wind of

less than $0.1 billion, primarily at Onshore Wind services from increased costs to improve fleet performance and Offshore Wind due to a

termination of a supply agreement in the first quarter of 2025 and the impact of tariffs, partially offset at Onshore Wind equipment due to an

increase in units delivered and market selectivity.

Net income (loss) and Net income (loss) margin were $0.8 billion and 4.4%, respectively, for the six months ended June 30, 2025, a

decrease of $0.4 billion and 3.2%, respectively, primarily due to a decrease in other income (expense) - net of $0.7 billion driven by the

nonrecurrence of a $0.9 billion pre-tax gain from the sale of a portion of Steam Power nuclear activities to EDF in the second quarter of

2024, partially offset by an increase in operating income (loss) of $0.2 billion and a decrease in provision for income taxes of $0.1 billion.

Adjusted EBITDA* and Adjusted EBITDA margin* were $1.2 billion and 7.2%, respectively, for the six months ended June 30, 2025, an

increase of $0.5 billion and 2.5%, respectively, primarily driven by increases in segment results at Electrification and Power, partially offset

at Wind.

SEGMENT OPERATIONS**.** Segment revenues include sales of equipment and services by our segments. Segment EBITDA is

determined based on performance measures used by our Chief Operating Decision Maker, who is our Chief Executive Officer (CEO), to

assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude certain non-cash

charges, such as depreciation and amortization, impairments and other matters, major restructuring programs, and certain gains and

losses from purchases and sales of business interests. Certain corporate costs, including those related to shared services, employee

benefits and information technology (IT), are allocated to our segments based on usage or their relative net cost of operations.

Three months ended June 30Six months ended June 30
SUMMARY OF REPORTABLE SEGMENTS2025202420252024
Power$4,758$4,455$9,180$8,490
Wind2,2452,0624,0953,701
Electrification2,2011,7904,0803,441
Eliminations and other(92)(103)(212)(169)
Total revenues$9,111$8,204$17,143$15,463
Segment EBITDA
Power$778$613$1,286$958
Wind(165)(117)(312)(289)
Electrification322129535195
Corporate and other(a)(164)(101)(283)(150)
Adjusted EBITDA(b)*$770$524$1,227$714

(a) Includes our Financial Services business and other general corporate expenses, including costs required to operate as a stand-alone

public company.

(b) See "—Non-GAAP Financial Measures" for additional information related to Adjusted EBITDA*. Adjusted EBITDA* includes interest and

other financial income (charges) and the benefit for income taxes of Financial Services as this business is managed on an after-tax

basis due to the nature of its investments.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 28

POWER

Three months ended June 30Six months ended June 30
Orders in units2025202420252024
Gas Turbines47158549
Heavy-Duty Gas Turbines20144930
HA-Turbines741512
Aeroderivatives2713619
Gas Turbine Gigawatts5.14.112.29.0
Three months ended June 30Six months ended June 30
Sales in units2025202420252024
Gas Turbines21154032
Heavy-Duty Gas Turbines1883018
HA-Turbines81132
Aeroderivatives371014
Gas Turbine Gigawatts5.21.58.23.7
RPOJune 30, 2025December 31, 2024June 30, 2024
Equipment$16,133$12,461$10,978
Services62,93260,89058,479
Total RPO$79,065$73,351$69,457

RPO as of June 30, 2025 increased $5.7 billion (8%) from December 31, 2024, primarily at Gas Power due to Heavy-Duty Gas Turbine and

Aeroderivative equipment and contractual services, and increases at Hydro Power equipment and Steam Power services. RPO increased

$9.6 billion (14%) from June 30, 2024, primarily at Gas Power due to increases in equipment and services, and increases at Hydro Power

equipment and Steam Power services.

Three months ended June 30Six months ended June 30
SEGMENT REVENUES AND EBITDA2025202420252024
Gas Power$3,884$3,459$7,463$6,500
Nuclear Power189222389450
Hydro Power201182358363
Steam Power4845929711,176
Total segment revenues$4,758$4,455$9,180$8,490
Equipment$1,504$1,285$2,996$2,486
Services3,2533,1706,1856,003
Total segment revenues$4,758$4,455$9,180$8,490
Segment EBITDA$778$613$1,286$958
Segment EBITDA margin16.4%13.8%14.0%11.3%

For the three months ended June 30, 2025**, segment revenues were** up $0.3 billion (7%) and segment EBITDA was up $0.2 billion

(27%).

Segment revenues increased $0.4 billion (9%) organically*, primarily at Gas Power equipment due to increases in Heavy-Duty Gas Turbine

equipment deliveries partially offset by lower Aeroderivative unit shipments, as well as increases at Gas Power services due to higher parts

volume.

Segment EBITDA increased $0.1 billion (12%) organically*, primarily at Gas Power and Steam Power due to favorable price, higher

volume, and increased productivity partially offset by additional expenses to support investments at Gas Power and Nuclear Power and the

impact of inflation.

For the six months ended June 30, 2025**, segment revenues were** up $0.7 billion (8%) and segment EBITDA was up $0.3 billion

(34%).

Segment revenues increased $1.0 billion (12%) organically*, primarily at Gas Power equipment due to increases in Heavy-Duty Gas

Turbine equipment deliveries, and increases in Gas Power services and Steam Power services due to higher volume in contractual and

non-contractual services.

Segment EBITDA increased $0.2 billion (16%) organically*, primarily at Gas Power and Steam Power due to favorable price, higher

volume, and increased productivity partially offset by the impact of inflation and additional expenses to support investments at Gas Power

and Nuclear Power.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 29

WIND

Three months ended June 30Six months ended June 30
Onshore and Offshore Wind orders in units2025202420252024
Wind Turbines381431404621
Repower Units205205205246
Wind Turbine and Repower Units Gigawatts1.61.81.82.5
Three months ended June 30Six months ended June 30
Onshore and Offshore Wind sales in units2025202420252024
Wind Turbines351341627593
Repower Units1566428664
Wind Turbine and Repower Units Gigawatts1.71.63.02.7
RPOJune 30, 2025December 31, 2024June 30, 2024
Equipment$9,731$10,720$13,147
Services12,77711,96212,626
Total RPO$22,508$22,682$25,773

RPO as of June 30, 2025 decreased $0.2 billion (1%) from December 31, 2024, primarily due to a decrease in orders at Onshore Wind as

U.S. customers dealt with permitting delays and policy uncertainty and decreases at Offshore Wind as we continue to execute on our

contracts. RPO decreased $3.3 billion (13%) from June 30, 2024, primarily due to decreases at Offshore Wind as we continue to execute

on our contracts and the finalization of the settlement of a previously canceled project in the third quarter of 2024, and decreases at

Onshore Wind.

Three months ended June 30Six months ended June 30
SEGMENT REVENUES AND EBITDA2025202420252024
Onshore Wind$1,962$1,560$3,545$2,619
Offshore Wind225353430794
LM Wind Power58149120288
Total segment revenues$2,245$2,062$4,095$3,701
Equipment$1,797$1,668$3,209$2,900
Services448394886801
Total segment revenues$2,245$2,062$4,095$3,701
Segment EBITDA$(165)$(117)$(312)$(289)
Segment EBITDA margin(7.3)%(5.7)%(7.6)%(7.8)%

For the three months ended June 30, 2025**, segment revenues were** up $0.2 billion (9%) and segment EBITDA decreased slightly

(41%)****.

Segment revenues increased $0.2 billion (9%) organically*, primarily at Onshore Wind due to delivery of more units, partially offset by

decreases at Offshore Wind due to a slower pace of production.

Segment EBITDA decreased slightly (56%) organically*, primarily at Onshore Wind services due to increased costs to improve fleet

performance and Offshore Wind due to the impact of tariffs, partially offset at Onshore Wind equipment due to an increase in units

delivered and market selectivity.

For the six months ended June 30, 2025**, segment revenues were** up $0.4 billion (11%) and segment EBITDA decreased slightly

(8%).

Segment revenues increased $0.4 billion (12%) organically*, primarily at Onshore Wind due to delivery of more units partially offset by

decreases at Offshore Wind due to a slower pace of production.

Segment EBITDA decreased slightly (17%) organically*, primarily at Onshore Wind services from increased costs to improve fleet

performance and Offshore Wind due to a termination of a supply agreement in the first quarter of 2025 and the impact of tariffs, partially

offset at Onshore Wind equipment due to an increase in units delivered and market selectivity.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 30

ELECTRIFICATION

RPOJune 30, 2025December 31, 2024June 30, 2024
Equipment$23,950$20,005$17,540
Services3,5803,4483,139
Total RPO$27,530$23,453$20,679

RPO as of June 30, 2025 increased $4.1 billion (17%) from December 31, 2024, primarily due to demand for switchgear, alternating current

substation solutions, and transformers at Grid Solutions. RPO increased $6.9 billion (33%) from June 30, 2024, primarily due to demand for

high-voltage direct current solutions, switchgear, and alternating current substation solutions at Grid Solutions.

Three months ended June 30Six months ended June 30
SEGMENT REVENUES AND EBITDA2025202420252024
Grid Solutions$1,570$1,142$2,844$2,251
Power Conversion & Storage411426792762
Electrification Software220223444428
Total segment revenues$2,201$1,790$4,080$3,441
Equipment$1,673$1,286$3,065$2,516
Services5285041,015925
Total segment revenues$2,201$1,790$4,080$3,441
Segment EBITDA$322$129$535$195
Segment EBITDA margin14.6%7.2%13.1%5.7%

For the three months ended June 30, 2025**, segment revenues were** up $0.4 billion (23%) and segment EBITDA was up $0.2 billion**.**

Segment revenues increased $0.4 billion (20%) organically*, primarily at Grid Solutions due to growth in high-voltage direct current

solutions, switchgear, and transformer equipment volume.

Segment EBITDA increased $0.2 billion organically*, primarily due to volume, productivity, and favorable price at Grid Solutions.

For the six months ended June 30, 2025**, segment revenues were** up $0.6 billion (19%) and segment EBITDA was up $0.3 billion**.**

Segment revenues increased $0.7 billion (19%) organically*, primarily at Grid Solutions due to growth in high-voltage direct current

solutions, switchgear, and transformer equipment volume.

Segment EBITDA increased $0.3 billion organically*, primarily due to volume, productivity, and favorable price at Grid Solutions.

OTHER INFORMATION

Gross Profit and Gross Margin. Gross profit was $1.8 billion and $1.7 billion for the three months ended and $3.3 billion and $2.9 billion

for the six months ended June 30, 2025 and 2024, respectively. Gross margin was 20.3% and 20.7% for the three months ended and

19.3% and 18.4% for the six months ended June 30, 2025 and 2024, respectively. The increase in gross profit for the quarter was due to an

increase at Power primarily at Gas Power and Steam Power from favorable price, higher volume, and increased productivity partially offset

by the impact of inflation; and increase at Electrification due to higher volume, productivity, and favorable price primarily at Grid Solutions;

partially offset by a decrease at Wind in Onshore Wind services due to increased costs to improve fleet performance and Offshore Wind

due to the impact of tariffs, partially offset at Onshore Wind equipment due to an increase in units delivered and market selectivity. The

increase in gross profit for the year was due to increases at Power and Electrification partially offset by a decrease at Wind due to the

reasons described above, in addition to a termination of a supply agreement in Offshore Wind.

Selling, General, and Administrative**.** Selling, general, and administrative costs were $1.2 billion and $0.9 billion for the three months

ended and $2.4 billion and $2.1 billion for the six months ended and comprised 13.0% and 11.4% of revenues for the three months ended

and 13.8% and 13.8% of revenues for the six months ended June 30, 2025 and 2024, respectively. The increase in costs for the quarter

and the year was attributable to the nonrecurrence of $0.3 billion received related to an arbitration refund in 2024, higher stock-based

compensation, labor inflation and higher corporate costs, partially offset by cost reduction initiatives, and the nonrecurrence of the sale of a

portion of Steam Power nuclear activities to EDF.

Restructuring Charges and Separation Costs. We continuously evaluate our cost structure and are implementing several restructuring

and process transformation actions considered necessary to simplify our organizational structure. In connection with the Spin-Off, we

incurred and will continue to incur certain one-time separation costs. In addition, in connection with the Spin-Off we recognized a benefit

related to deferred intercompany profit upon GE retaining the renewable energy U.S. tax equity investments in the second quarter of 2024.

See Note 21 in the Notes to the consolidated and combined financial statements for further information.

Interest and Other Financial Income (Charges) – Net**.** Interest and other financial income (charges) – net was less than $0.1 billion and

$0.1 billion in income for the three months ended and $0.1 billion and less than $0.1 billion in income for the six months ended June 30,

2025 and 2024, respectively. The decrease in income for the quarter was driven by the nonrecurrence of interest income received from an

arbitration refund in 2024. The increase in income for the year was primarily driven by a higher average balance of invested funds during

the year. The primary components of net interest and other financial income (charges) are fees on cash management activities, interest on

borrowings, and interest earned on cash balances and short-term investments.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 31

Income Taxes. Our effective tax rate was 23.7% and 22.6% for the three and six months ended June 30, 2025, respectively. The effective

tax rate was higher than the U.S. statutory rate of 21% in both periods primarily due to losses providing no tax benefit in certain

jurisdictions, partially offset by an income tax benefit from stock-based compensation.

Our effective tax rate was 20.1% for the three months ended June 30, 2024. The effective tax rate was lower than the U.S. statutory rate of

21% primarily due to a lower effective tax rate on a foreign pre-tax gain from the sale of a portion of Steam Power nuclear activities to EDF,

partially offset by losses providing no tax benefit in certain jurisdictions, and an increase in income tax expense due to the reduction of

certain U.S. tax attributes that are not part of the Company's stand-alone operations.

Our effective tax rate was 22.1% for the six months ended June 30, 2024. The effective tax rate was higher than the U.S. statutory rate of

21% primarily due to losses providing no tax benefit in certain jurisdictions, partially offset by a pre-tax gain with an insignificant tax impact

from the sale of a portion of Steam Power nuclear activities to EDF.

We regularly assess the realizability of our deferred tax assets based on all available evidence both positive and negative. Based on our

assessment of the realizability of our deferred tax assets as of June 30, 2025, we continue to maintain valuation allowances against

our deferred tax assets in the U.S. and certain foreign jurisdictions, primarily due to cumulative losses in those jurisdictions. Given the

current year profit and anticipated future profitability in the U.S., it is reasonably possible that the continued improvement in our U.S.

operations could result in the positive evidence necessary to warrant the release of a significant portion of our U.S. valuation allowance in

the second half of 2025. A release of the valuation allowance would result in the recognition of certain U.S. deferred tax assets and

a corresponding benefit in our provision for income taxes in the period the release occurs. See Note 14 in the Notes to the consolidated

and combined financial statements for further information.

CAPITAL RESOURCES AND LIQUIDITY**.** Historically, we participated in cash pooling and other financing arrangements with GE to

manage liquidity and fund our operations. As a result of completing the Spin-Off, we no longer participate in these arrangements and our

Cash, cash equivalents, and restricted cash are held and used solely for our own operations. Our capital structure, long-term commitments,

and sources of liquidity have changed significantly from our historical practices. As of June 30, 2025, our Cash, cash equivalents, and

restricted cash was $7.9 billion, $0.4 billion of which was restricted use cash. In addition, we have access to a $3.0 billion committed

revolving credit facility (Revolving Credit Facility). See “—Capital Resources and Liquidity—Debt” for further information. We believe our

unrestricted cash, cash equivalents, future cash flows generated from operations, and committed credit facility will be responsive to the

needs of our current and planned operations for at least the next 12 months.

On June 23, 2025, the Board of Directors declared a $0.25 per share quarterly dividend on our outstanding common stock, payable on

August 18, 2025, to stockholders of record as of July 21, 2025. On December 10, 2024, the Board of Directors authorized up to $6 billion of

common stock repurchases. In connection with this authorization, we repurchased 1.2 million shares and 5.2 million shares for $0.4 billion

and $1.6 billion during the three and six months ended June 30, 2025, respectively. Although we intend to fund priorities that profitably grow

the company and return capital to stockholders through dividends and share repurchases as part of our capital allocation strategy, we are

not obligated to pay cash dividends or to repurchase a specified or any number or dollar value of shares under our share repurchase

program. The declaration of any future dividends is at the discretion of our Board of Directors and will be based on our earnings, financial

condition, cash requirements, prospects, and other factors. The amount and timing of any future share repurchases under our share

repurchase program will be based on the trading price and volume of our shares of common stock and other market factors as well as our

earnings, financial condition, cash requirements, prospects, alternative uses for our cash, and other factors.

Consolidated and Combined Statement of Cash Flows**.** The most significant source of cash flows from operations is customer-related

activities, the largest of which is collecting cash resulting from equipment or services sales. The most significant operating uses of cash are

to pay our suppliers, employees, tax authorities, and postretirement plans. We measure ourselves on a free cash flow* basis. We believe

that free cash flow* provides management and investors with an important measure of our ability to generate cash on a normalized basis.

Free cash flow* also provides insight into our ability to produce cash subsequent to fulfilling our capital obligations; however, free cash flow*

does not delineate funds available for discretionary uses as it does not deduct the payments required for certain investing and financing

activities.

We typically invest in property, plant, and equipment (PP&E) over multiple periods to support new product introductions and increases in

manufacturing capacity and to perform ongoing maintenance of our manufacturing operations. We believe that while PP&E expenditures

will fluctuate period to period, we will need to maintain a material level of net PP&E spend to maintain ongoing operations and growth of the

business.

Six months ended June 30
FREE CASH FLOW (NON-GAAP)20252024
Cash from (used for) operating activities (GAAP)$1,528$535
Add: Gross additions to property, plant, and equipment and internal-use software(359)(374)
Free cash flow (Non-GAAP)$1,169$161

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 32

Cash from operating activities was $1.5 billion and $0.5 billion for the six months ended June 30, 2025 and 2024, respectively.

Cash from operating activities increased by $1.0 billion in 2025 compared to 2024, primarily driven by: an increase in accounts payable and

equipment project payables of $0.5 billion, primarily due to higher purchases of materials, partially offset by higher disbursements, inclusive

of a higher impact related to prepayments compared to the prior year, and the nonrecurrence of settlements of payables with GE prior to

the Spin-Off in the first quarter of 2024; an increase in inventories of $0.4 billion, primarily due to higher liquidations partially offset by higher

purchases of materials in Power; an increase in current receivables of $0.4 billion, primarily due to higher collections, partially offset by

higher billings; higher net income (after adjusting for depreciation of PP&E, amortization of intangible assets, and (gains) losses on

purchases and sales of business interests) of $0.3 billion, including the nonrecurrence of a $0.3 billion cash refund received in connection

with an arbitration proceeding in the second quarter of 2024; and an increase in contract liabilities and current deferred income of $0.3

billion, primarily due to higher down payments on orders and slot reservation agreements at Power, partially offset by lower collections on

projects at Onshore Wind; partially offset by a decrease in All other operating activities of $(0.3) billion, primarily due to an increase in long-

term receivables related to advanced manufacturing credits.

Cash from operating activities of $1.5 billion for the six months ended June 30, 2025 included a $1.6 billion inflow from changes in working

capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of $1.9

billion, driven by down payments on orders and slot reservation agreements at Power, and down payments and collections at

Electrification, partially offset by revenue recognition at Wind; and current receivables of $1.0 billion, driven by collections outpacing billings

in Power, including a decrease in past dues, and collections outpacing billings and a decrease in supplier advances at Wind; partially offset

by inventories of $(0.9) billion, primarily due to volume across all businesses to support fulfillment and deliveries expected in 2025 and

2026, and current contract assets of $(0.6) billion, driven by revenue recognition exceeding billings, primarily in Wind and Power.

Cash from operating activities of $0.5 billion for the six months ended June 30, 2024 included a $0.3 billion inflow from changes in working

capital. The cash inflow from changes in working capital was primarily driven by: contract liabilities and current deferred income of $1.6

billion, driven by down payments and collections on several large projects in Grid Solutions at Electrification, and net collections at Power;

current receivables of $0.7 billion, driven by collections outpacing billings, primarily at Wind and Power, and the benefits arising from the

IRA related to advanced manufacturing credits of $0.2 billion; accounts payable and equipment project payables of $(0.3) billion due to

higher volume than disbursements in Power, partially offset by Wind and Electrification; inventories of $(1.3) billion, primarily in Gas Power

at Power and Onshore Wind at Wind, to support fulfillment and deliveries expected in the second half of 2024; and current contract assets

of $(0.4) billion, driven by revenue recognition exceeding billings, primarily in our Offshore Wind business at Wind, and on our long-term

service agreements in Power.

Cash from (used for) investing activities was $(0.2) billion and $0.3 billion for the six months ended June 30, 2025 and 2024,

respectively.

Cash used for investing activities increased by $0.5 billion in 2025 compared to 2024 primarily driven by: the nonrecurrence of the Steam

Power business sale of part of its nuclear activities to EDF in our Power segment of $0.6 billion; partially offset by lower purchases of and

contributions to equity method investments of $0.1 billion, primarily in our Financial Services business; and higher sales of and distributions

from equity method investments of $0.1 billion, driven by the sale of an approximately 2% equity interest in China XD Electric Co., Ltd. in

the first quarter of 2025. Cash used for additions to PP&E and internal-use software, which is a component of free cash flow*, was $0.4

billion for both the six months ended June 30, 2025 and 2024.

Cash from (used for) financing activities was $(1.9) billion and $2.9 billion for the six months ended June 30, 2025 and 2024,

respectively. Cash used for financing activities increased by $4.8 billion in 2025 compared to 2024 primarily driven by: the nonrecurrence of

transfers from parent of $3.0 billion; and cash settlements for share repurchases of $1.6 billion in 2025.

Material Cash Requirements. In the normal course of business, we enter into contracts and commitments that oblige us to make

payments in the future. See Notes 6 and 20 in the Notes to the consolidated and combined financial statements for further information

regarding our obligations under lease and guarantee arrangements as well as our investment commitments. See Note 12 in the Notes to

the consolidated and combined financial statements for further information regarding material cash requirements related to our pension

obligations.

Debt. Total debt, excluding finance leases, was $0.1 billion for both June 30, 2025 and December 31, 2024. We have a $3.0 billion

Revolving Credit Facility to fund near-term intra-quarter working capital needs as they arise. In addition, we have a $3.0 billion committed

trade finance facility (Trade Finance Facility, and together with the Revolving Credit Facility, the Credit Facilities). The Trade Finance

Facility has not been and is not expected to be utilized, and does not contribute to direct liquidity. We believe that our financing

arrangements, future cash from operations, and access to capital markets will provide adequate resources to fund our future cash flow

needs. For more information about the Credit Facilities, refer to our Current Report on Form 8-K, filed with the SEC on April 2, 2024, and

see Note 20 in the Notes to the consolidated and combined financial statements.

Credit Ratings and Conditions. We have access to the Revolving Credit Facility to fund operations, and we may rely on debt capital

markets in the future to further support our liquidity needs. The cost and availability of any debt financing is influenced by our credit ratings

and market conditions. Standard and Poor's Global Ratings (S&P) and Fitch Ratings (Fitch) have issued credit ratings for the Company. On

March 12, 2025, Fitch affirmed GE Vernova Inc.'s long-term credit rating and revised its outlook to Positive from Stable. On May 23, 2025,

S&P affirmed GE Vernova Inc.'s long-term credit rating and revised its outlook to Positive from Stable. Our credit ratings as of the date of

this filing are set forth in the following table.

S&PFitch
OutlookPositivePositive
Long-termBBB-BBB

2025 2Q FORM 10-Q 33

We are disclosing our credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds

and access to credit. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each

rating should be evaluated independently of any other rating. See Item 1A. "Risk Factors—Risks Relating to Our Business and Our Industry

—Risks Relating to Operations and Supply Chain" and Item 1A. "Risk Factors—Risks Relating to Financial, Accounting, and Tax Matters" in

our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for a description of some of the potential consequences of a

reduction in our credit ratings.

If we are unable to maintain investment grade ratings, we could face significant challenges in being awarded new contracts, substantially

increasing financing and hedging costs, and refinancing risks as well as substantially decreasing the availability of credit. As of June 30,

2025, we estimated an insignificant liquidity impact of a ratings downgrade below investment grade.

Parent Company Credit Support. Prior to the Spin-Off, to support GE Vernova businesses in selling products and services globally, GE

often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments supporting the

performance of its subsidiary legal entities transacting directly with customers, in addition to providing similar credit support for non-

customer related activities of GE Vernova (collectively, the GE credit support). In connection with the Spin-Off, we are working to seek

novation or assignment of GE credit support, the majority of which relates to parent company guarantees, associated with GE Vernova

legal entities from GE to GE Vernova. For GE credit support that remained outstanding at the Spin-Off, GE Vernova is obligated to use

reasonable best efforts to terminate or replace, and obtain a full release of GE’s obligations and liabilities under, all such credit support. GE

Vernova pays quarterly fees to GE which are determined by amounts associated with GE credit support. GE Vernova is subject to other

contractual restrictions and requirements while GE continues to be obligated under such credit support on behalf of GE Vernova. In

addition, while GE will remain obligated under the contract or instrument, GE Vernova will be obligated to indemnify GE for credit support

related payments that GE is required to make and possible related costs.

As of June 30, 2025, we estimated GE Vernova RPO and other obligations that relate to GE credit support to be approximately $12 billion,

an over 65% reduction since the Spin-Off. We expect approximately $8 billion of the RPO related to GE credit support obligations to

contractually mature by December 31, 2029. The underlying obligations are predominantly customer contracts that GE Vernova performs in

the normal course of its business. We have no known instances historically where payments or performance from GE were required under

parent company guarantees relating to GE Vernova customer contracts.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS**.** In November 2024, the Financial Accounting Standards Board (FASB) issued

ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure about specific types of

expenses included in the expense captions presented on the face of the income statement as well as disclosure about selling expenses.

The ASU is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027,

with early adoption permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our consolidated

and combined financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The

amendments require disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that

meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU is effective

for fiscal years beginning after December 15, 2024. We are currently evaluating the impact that this guidance will have on the disclosures

within our consolidated and combined financial statements. The Company will adopt the new annual disclosures as required for the fiscal

year ended December 31, 2025.

CRITICAL ACCOUNTING ESTIMATES**.** To prepare our consolidated and combined financial statements in accordance with U.S. GAAP,

management makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, including our contingent

liabilities, as of the date of our financial statements and the reported amounts of our revenues and expenses during the reporting periods.

Our actual results may differ from these estimates. We consider estimates to be critical (i) if we are required to make assumptions about

material matters that are uncertain at the time of estimation or (ii) if materially different estimates could have been made or it is reasonably

likely that the accounting estimate will change from period to period. See Item 7. "Management’s Discussion and Analysis of Financial

Condition and Results of Operations—Critical Accounting Estimates" and Note 2 in the Notes to the audited consolidated and combined

financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 for additional discussion of

accounting policies and critical accounting estimates.

NON-GAAP FINANCIAL MEASURES**.** The non-GAAP financial measures presented in this Quarterly Report on Form 10-Q are

supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition and operating

results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding

U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or

are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures

provide investors greater transparency to the information used by management for its operational decision-making and allow investors to

see our results “through the eyes of management.” We further believe that providing this information assists our investors in understanding

our operating performance and the methodology used by management to evaluate and measure such performance. When read in

conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying

businesses and can be used by management as one basis for financial, operational, and planning decisions. Finally, these measures are

often used by analysts and other interested parties to evaluate companies in our industry.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by

other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from

company to company. In order to compensate for these and the other limitations discussed below, management does not consider these

measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers

should review the reconciliations below, and above with respect to free cash flow, and should not rely on any single financial measure to

evaluate our business. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable

U.S. GAAP financial measures follow.

2025 2Q FORM 10-Q 34

We believe the organic measures presented below provide management and investors with a more complete understanding of underlying

operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency,

which includes translational and transactional impacts, as these activities can obscure underlying trends.

ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)
Revenue(a)Segment EBITDASegment EBITDA margin
For the three months ended June 3020252024V%20252024V%20252024V pts
Power (GAAP)$4,758$4,4557%$778$61327%16.4%13.8%2.6pts
Less: Acquisitions——1—
Less: Business dispositions—127—(21)
Less: Foreign currency effect27338(25)
Power organic (Non-GAAP)$4,731$4,3259%$739$65912%15.6%15.2%0.4pts
Wind (GAAP)$2,245$2,0629%$(165)$(117)(41)%(7.3)%(5.7)%(1.6)pts
Less: Acquisitions————
Less: Business dispositions————
Less: Foreign currency effect(7)(2)(15)(21)
Wind organic (Non-GAAP)$2,252$2,0649%$(150)$(96)(56)%(6.7)%(4.7)%(2.0)pts
Electrification (GAAP)$2,201$1,79023%$322$129F14.6%7.2%7.4pts
Less: Acquisitions1———
Less: Business dispositions————
Less: Foreign currency effect472133
Electrification organic (Non-GAAP)$2,153$1,78820%$309$126F14.4%7.0%7.4pts
(a) Includes intersegment sales of $105 million and $119 million for the three months ended June 30, 2025 and 2024, respectively. See Note 22 in the Notes to the consolidated and combined financial statements for further information.
ORGANIC REVENUES, EBITDA, AND EBITDA MARGIN BY SEGMENT (NON-GAAP)
Revenue(a)Segment EBITDASegment EBITDA margin
For the six months ended June 3020252024V%20252024V%20252024V pts
Power (GAAP)$9,180$8,4908%$1,286$95834%14.0%11.3%2.7pts
Less: Acquisitions——2—
Less: Business dispositions—308—(41)
Less: Foreign currency effect—552(61)
Power organic (Non-GAAP)$9,180$8,17612%$1,232$1,05916%13.4%13.0%0.4pts
Wind (GAAP)$4,095$3,70111%$(312)$(289)(8)%(7.6)%(7.8)%0.2pts
Less: Acquisitions————
Less: Business dispositions————
Less: Foreign currency effect(43)(9)(13)(35)
Wind organic (Non-GAAP)$4,138$3,71012%$(298)$(255)(17)%(7.2)%(6.9)%(0.3)pts
Electrification (GAAP)$4,080$3,44119%$535$195F13.1%5.7%7.4pts
Less: Acquisitions2—(1)—
Less: Business dispositions————
Less: Foreign currency effect(20)811(4)
Electrification organic (Non-GAAP)$4,098$3,43419%$525$199F12.8%5.8%7.0pts

(a) Includes intersegment sales of $231 million and $197 million for the six months ended June 30, 2025 and 2024, respectively. See Note

22 in the Notes to the consolidated and combined financial statements for further information.

Three months ended June 30Six months ended June 30
ORGANIC REVENUES (NON-GAAP)20252024V%20252024V%
Total revenues (GAAP)$9,111$8,20411%$17,143$15,46311%
Less: Acquisitions1—2—
Less: Business dispositions—127—308
Less: Foreign currency effect663(63)4
Organic revenues (Non-GAAP)$9,044$8,07412%$17,205$15,15114%

2025 2Q FORM 10-Q 35

Three months ended June 30Six months ended June 30
EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP)20252024V%20252024V%
Total equipment revenues (GAAP)$4,894$4,19417%$9,091$7,81116%
Less: Acquisitions————
Less: Business dispositions—66—171
Less: Foreign currency effect36(2)(62)(1)
Equipment organic revenues (Non-GAAP)$4,858$4,13018%$9,153$7,64120%
Total services revenues (GAAP)$4,217$4,0105%$8,052$7,6525%
Less: Acquisitions1—2—
Less: Business dispositions—61—138
Less: Foreign currency effect305(1)5
Services organic revenues (Non-GAAP)$4,186$3,9456%$8,052$7,5107%

We believe that Adjusted EBITDA* and Adjusted EBITDA margin*, which are adjusted to exclude the effects of unique and/or non-cash

items that are not closely associated with ongoing operations, provide management and investors with meaningful measures of our

performance that increase the period-to-period comparability by highlighting the results from ongoing operations and the underlying

profitability factors. We believe Adjusted organic EBITDA* and Adjusted organic EBITDA margin* provide management and investors with,

when considered with Adjusted EBITDA* and Adjusted EBITDA margin*, a more complete understanding of underlying operating results

and trends of established, ongoing operations by further excluding the effect of acquisitions, dispositions, and foreign currency, which

includes translational and transactional impacts, as these activities can obscure underlying trends. We believe these measures provide

additional insight into how our businesses are performing on a normalized basis. However, Adjusted EBITDA*, Adjusted organic EBITDA*,

Adjusted EBITDA margin* and Adjusted organic EBITDA margin* should not be construed as inferring that our future results will be

unaffected by the items for which the measures adjust.

Three months ended June 30Six months ended June 30
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (NON-GAAP)20252024V%20252024V%
Net income (loss) (GAAP)$492$1,280(62)%$756$1,174(36)%
Add: Restructuring and other charges4262108210
Add: (Gains) losses on purchases and sales of business interests—(847)(19)(842)
Add: Separation costs (benefits)(a)34(91)80(91)
Add: Arbitration refund(b)—(254)—(254)
Add: Non-operating benefit income(110)(134)(225)(269)
Add: Depreciation and amortization(c)202237406445
Add: Interest and other financial (income) charges – net(d)(e)(41)(61)(97)(58)
Add: Provision (benefit) for income taxes(e)151333218397
Adjusted EBITDA (Non-GAAP)$770$52447%$1,227$71472%
Net income (loss) margin (GAAP)5.4%15.6%(10.2) pts4.4%7.6%(3.2) pts
Adjusted EBITDA margin (Non-GAAP)8.5%6.4%2.1 pts7.2%4.6%2.6 pts
(a) Costs incurred in the Spin-Off and separation from GE, including system implementations, advisory fees, one-time stock option grant, and other one-time costs. In addition, 2024 includes $136 million benefit related to deferred intercompany profit that was recognized upon GE retaining the renewable energy U.S. tax equity investments. (b) Represents a cash refund received related to an arbitration proceeding with a multiemployer pension plan and excludes $52 million related to the interest on such amounts that was recorded in Interest and other financial charges – net. (c) Excludes depreciation and amortization expense related to Restructuring and other charges. Includes amortization of basis differences included in Equity method investment income (loss) which is part of Other income (expense) - net. (d) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business operations primarily with customers. (e) Excludes interest expense of zero and $1 million and benefit (provision) for income taxes of $(2) million and $11 million for the three months ended June 30, 2025 and 2024, respectively, as well as excludes interest expense of $(1) million and $11 million and benefit (provision) for income taxes of $(4) million and $64 million for the six months ended June 30, 2025 and 2024, respectively, related to our Financial Services business which, because of the nature of its investments, is measured on an after-tax basis.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 36

ADJUSTED ORGANIC EBITDA AND ADJUSTED ORGANIC EBITDA MARGIN (NON-GAAP)Three months ended June 30Six months ended June 30
20252024V%20252024V%
Adjusted EBITDA (Non-GAAP)$770$52447%$1,227$71472%
Less: Acquisitions1—1—
Less: Business dispositions—(21)—(41)
Less: Foreign currency effect32(41)49(94)
Adjusted organic EBITDA (Non-GAAP)$737$58726%$1,177$84839%
Adjusted EBITDA margin (Non-GAAP)8.5%6.4%2.1 pts7.2%4.6%2.6 pts
Adjusted organic EBITDA margin (Non-GAAP)8.1%7.3%0.8 pts6.8%5.6%1.2 pts

See “—Capital Resources and Liquidity” for discussion of free cash flow*.

Previous: Item 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. · Next: Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. We are exposed to market risk