filings.toolsItem 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
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Item 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
| CONSOLIDATED AND COMBINED STATEMENT OF INCOME (LOSS) (UNAUDITED) | |||||
| Three months ended September 30 | Nine months ended September 30 | ||||
| (In millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |
| Sales of equipment | $5,880 | $5,290 | $14,971 | $13,101 | |
| Sales of services | 4,089 | 3,623 | 12,141 | 11,276 | |
| Total revenues | 9,969 | 8,913 | 27,112 | 24,376 | |
| Cost of equipment | 5,165 | 5,076 | 13,346 | 12,621 | |
| Cost of services | 2,906 | 2,728 | 8,553 | 7,794 | |
| Gross profit | 1,897 | 1,109 | 5,213 | 3,962 | |
| Selling, general, and administrative expenses | 1,221 | 1,226 | 3,594 | 3,366 | |
| Research and development expenses | 310 | 243 | 832 | 717 | |
| Operating income (loss) | 366 | (359) | 787 | (122) | |
| Interest and other financial income (charges) – net | 44 | 36 | 141 | 82 | |
| Non-operating benefit income | 115 | 130 | 340 | 399 | |
| Other income (expense) – net (Note 18) | 221 | 71 | 455 | 1,025 | |
| Income (loss) before income taxes | 746 | (122) | 1,723 | 1,385 | |
| Provision (benefit) for income taxes (Note 15) | 293 | (23) | 514 | 310 | |
| Net income (loss) | 453 | (99) | 1,209 | 1,075 | |
| Net loss (income) attributable to noncontrolling interests | (1) | 3 | 11 | (7) | |
| Net income (loss) attributable to GE Vernova | $452 | $(96) | $1,220 | $1,068 | |
| Earnings (loss) per share attributable to GE Vernova (Note 17): | |||||
| Basic | $1.66 | $(0.35) | $4.47 | $3.90 | |
| Diluted | $1.64 | $(0.35) | $4.41 | $3.85 | |
| Weighted-average number of common shares outstanding: | |||||
| Basic | 272 | 275 | 273 | 274 | |
| Diluted | 275 | 275 | 277 | 277 |
2025 3Q FORM 10-Q 6
| CONSOLIDATED AND COMBINED STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||
| (In millions, except share and per share amounts) | September 30, 2025 | December 31, 2024 |
| Cash, cash equivalents, and restricted cash | $7,945 | $8,205 |
| Current receivables – net (Note 4) | 7,374 | 8,177 |
| Inventories, including deferred inventory costs (Note 5) | 10,032 | 8,587 |
| Current contract assets (Note 9) | 9,485 | 8,621 |
| All other current assets (Note 10) | 934 | 564 |
| Assets held for sale (Note 3) | 508 | — |
| Current assets | 36,278 | 34,153 |
| Property, plant, and equipment – net (Note 6) | 5,555 | 5,150 |
| Goodwill (Note 8) | 4,327 | 4,263 |
| Intangible assets – net (Note 8) | 747 | 813 |
| Contract and other deferred assets (Note 9) | 486 | 555 |
| Equity method investments (Note 11) | 1,916 | 2,149 |
| Deferred income taxes (Note 15) | 1,684 | 1,639 |
| All other assets (Note 10) | 3,406 | 2,763 |
| Total assets | $54,398 | $51,485 |
| Accounts payable and equipment project payables (Note 12) | $9,541 | $8,602 |
| Contract liabilities and deferred income (Note 9) | 20,151 | 17,587 |
| All other current liabilities (Note 14) | 5,499 | 5,496 |
| Liabilities held for sale (Note 3) | 80 | — |
| Current liabilities | 35,272 | 31,685 |
| Deferred income taxes (Note 15) | 820 | 827 |
| Non-current compensation and benefits | 3,195 | 3,264 |
| All other liabilities (Note 14) | 5,382 | 5,116 |
| Total liabilities | 44,669 | 40,892 |
| Commitments and contingencies (Note 21) | ||
| Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 271,320,459 and 275,880,314 shares outstanding as of September 30, 2025 and December 31, 2024, respectively | 3 | 3 |
| Additional paid-in capital | 9,755 | 9,733 |
| Retained earnings | 2,626 | 1,611 |
| Treasury common stock, 6,497,383 and 226,290 shares at cost as of September 30, 2025 and December 31, 2024, respectively | (2,300) | (43) |
| Accumulated other comprehensive income (loss) – net attributable to GE Vernova (Note 16) | (1,438) | (1,759) |
| Total equity attributable to GE Vernova | 8,646 | 9,546 |
| Noncontrolling interests | 1,083 | 1,047 |
| Total equity | 9,729 | 10,593 |
| Total liabilities and equity | $54,398 | $51,485 |
2025 3Q FORM 10-Q 7
| CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS (UNAUDITED) | Nine months ended September 30 | |
| (In millions) | 2025 | 2024 |
| Net income (loss) | $1,209 | $1,075 |
| Adjustments to reconcile net income (loss) to cash from (used for) operating activities | ||
| Depreciation and amortization of property, plant, and equipment (Note 6) | 446 | 715 |
| Amortization of intangible assets (Note 8) | 177 | 188 |
| (Gains) losses on purchases and sales of business interests | (66) | (859) |
| Principal pension plans – net (Note 13) | (268) | (280) |
| Other postretirement benefit plans – net (Note 13) | (167) | (189) |
| Provision (benefit) for income taxes (Note 15) | 514 | 310 |
| Cash recovered (paid) during the year for income taxes | (489) | (299) |
| Changes in operating working capital: | ||
| Decrease (increase) in current receivables | 563 | 24 |
| Decrease (increase) in inventories, including deferred inventory costs | (1,047) | (1,151) |
| Decrease (increase) in current contract assets | (656) | (234) |
| Increase (decrease) in accounts payable and equipment project payables | 566 | 604 |
| Increase (decrease) in contract liabilities and current deferred income | 2,419 | 1,660 |
| All other operating activities | (693) | 98 |
| Cash from (used for) operating activities | 2,508 | 1,662 |
| Additions to property, plant, and equipment and internal-use software | (606) | (533) |
| Dispositions of property, plant, and equipment | 33 | 16 |
| Purchases of and contributions to equity method investments | (57) | (110) |
| Sales of and distributions from equity method investments | 248 | 32 |
| Proceeds from principal business dispositions | 60 | 639 |
| All other investing activities | (58) | 94 |
| Cash from (used for) investing activities | (381) | 138 |
| Net increase (decrease) in borrowings of maturities of 90 days or less | — | (23) |
| Transfers from (to) Parent | — | 2,933 |
| Dividends paid to stockholders | (207) | — |
| Purchases of common stock for treasury | (2,241) | (40) |
| All other financing activities | (187) | 620 |
| Cash from (used for) financing activities | (2,635) | 3,489 |
| Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash | 250 | (48) |
| Increase (decrease) in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale | (258) | 5,241 |
| Less: Net increase (decrease) in cash classified within assets held for sale | 2 | (603) |
| Increase (decrease) in cash, cash equivalents, and restricted cash | (259) | 5,844 |
| Cash, cash equivalents, and restricted cash at beginning of year | 8,205 | 1,551 |
| Cash, cash equivalents, and restricted cash as of September 30 | $7,945 | $7,395 |
2025 3Q FORM 10-Q 8
| CONSOLIDATED AND COMBINED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||
| Three months ended September 30 | Nine months ended September 30 | ||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |
| Net income (loss) attributable to GE Vernova | $452 | $(96) | $1,220 | $1,068 | |
| Net loss (income) attributable to noncontrolling interests | (1) | 3 | 11 | (7) | |
| Net income (loss) | $453 | $(99) | $1,209 | $1,075 | |
| Other comprehensive income (loss): | |||||
| Currency translation adjustments – net of taxes | 31 | 99 | 471 | (7) | |
| Benefit plans – net of taxes | (50) | (79) | (209) | (418) | |
| Cash flow hedges – net of taxes | 27 | (20) | 62 | 30 | |
| Other comprehensive income (loss) | $7 | $— | $324 | $(395) | |
| Comprehensive income (loss) | $460 | $(98) | $1,534 | $680 | |
| Comprehensive loss (income) attributable to noncontrolling interests | (1) | 3 | 7 | (9) | |
| Comprehensive income (loss) attributable to GE Vernova | $459 | $(96) | $1,540 | $672 |
2025 3Q FORM 10-Q 9
| CONSOLIDATED AND COMBINED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) | ||||||||
| Common stock | ||||||||
| (In millions) | Common shares outstanding | Par value | Additional paid-in capital | Retained earnings | Treasury common stock | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity |
| Balances as of July 1, 2025 | 272 | $3 | $9,714 | $2,241 | $(1,636) | $(1,445) | $1,070 | $9,947 |
| Issuance of shares in connection with equity awards | — | — | (13) | — | — | — | — | (13) |
| Share-based compensation expense | — | — | 54 | — | — | — | — | 54 |
| Dividends declared ($0.25 per common share) | — | — | — | (68) | — | — | — | (68) |
| Repurchase of common stock | (1) | — | — | (663) | — | — | (663) | |
| Net income (loss) | — | — | — | 452 | — | — | 1 | 453 |
| Currency translation adjustments – net of taxes | — | — | — | — | — | 30 | — | 31 |
| Benefit plans – net of taxes | — | — | — | — | — | (50) | — | (50) |
| Cash flow hedges – net of taxes | — | — | — | — | — | 27 | — | 27 |
| Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | 12 | 12 |
| Balances as of September 30, 2025 | 271 | $3 | $9,755 | $2,626 | $(2,300) | $(1,438) | $1,083 | $9,729 |
| Balances as of July 1, 2024 | 275 | $3 | $8,801 | $1,294 | $— | $(1,031) | $982 | $10,049 |
| Issuance of shares in connection with equity awards(a) | 1 | — | 9 | — | (40) | — | — | (31) |
| Share-based compensation expense | — | — | 50 | — | — | — | — | 50 |
| Net income (loss) | — | — | — | (96) | — | — | (3) | (99) |
| Currency translation adjustments – net of taxes | — | — | — | — | — | 99 | — | 99 |
| Benefit plans – net of taxes | — | — | — | — | — | (79) | — | (79) |
| Cash flow hedges – net of taxes | — | — | — | — | — | (20) | — | (20) |
| Changes in equity attributable to noncontrolling interests(b) | — | — | 514 | — | — | — | 34 | 548 |
| Balances as of September 30, 2024 | 276 | $3 | $9,374 | $1,198 | $(40) | $(1,031) | $1,014 | $10,517 |
(a) During the third quarter of 2024, restrictions lapsed on 435,719 shares of GE Vernova common stock in connection with the vesting of
performance shares originally awarded by General Electric Company, now operating as GE Aerospace. We withheld 218,290 shares of
GE Vernova common stock to satisfy tax withholding obligations, resulting in $40 million of Treasury common stock.
(b) Primarily relates to proceeds from the sale of an approximately 16% equity interest in GE Vernova T&D India Ltd, a power transmission
and distribution solution provider, in the third quarter of 2024, net of directly attributable taxes.
2025 3Q FORM 10-Q 10
| CONSOLIDATED AND COMBINED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) | |||||||||
| Common stock | |||||||||
| (In millions) | Common shares outstanding | Par value | Additional paid-in capital | Retained earnings | Treasury common stock | Net parent investment | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity |
| Balances as of January 1, 2025 | 276 | $3 | $9,733 | $1,611 | $(43) | $— | $(1,759) | $1,047 | $10,593 |
| Issuance of shares in connection with equity awards | 2 | — | (159) | — | — | — | — | — | (159) |
| Share-based compensation expense | — | — | 180 | — | — | — | — | — | 180 |
| Dividends declared ($0.75 per common share) | — | — | — | (205) | — | — | — | — | (205) |
| Repurchase of common stock | (6) | — | — | (2,257) | — | — | — | (2,257) | |
| Net income (loss) | — | — | — | 1,220 | — | — | — | (11) | 1,209 |
| Currency translation adjustments – net of taxes | — | — | — | — | — | — | 468 | 3 | 471 |
| Benefit plans – net of taxes | — | — | — | — | — | — | (210) | 1 | (209) |
| Cash flow hedges – net of taxes | — | — | — | — | — | — | 62 | — | 62 |
| Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | — | 42 | 42 |
| Balances as of September 30, 2025 | 271 | $3 | $9,755 | $2,626 | $(2,300) | $— | $(1,438) | $1,083 | $9,729 |
| Balances as of January 1, 2024 | — | $— | $— | $— | $— | $8,051 | $(635) | $964 | $8,380 |
| Transfers from (to) Parent, including Spin-Off related adjustments | — | — | — | — | — | 794 | — | — | 794 |
| Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment | 274 | 3 | 8,712 | — | — | (8,715) | — | — | — |
| Issuance of shares in connection with equity awards(a) | 2 | — | 45 | — | (40) | — | — | — | 4 |
| Share-based compensation expense | — | — | 104 | — | — | — | — | — | 104 |
| Net income (loss) | — | — | — | 1,198 | (130) | — | 7 | 1,075 | |
| Currency translation adjustments – net of taxes | — | — | — | — | — | — | (7) | — | (7) |
| Benefit plans – net of taxes | — | — | — | — | — | — | (420) | 1 | (418) |
| Cash flow hedges – net of taxes | — | — | — | — | — | — | 30 | — | 30 |
| Changes in equity attributable to noncontrolling interests(b) | — | — | 514 | — | — | — | — | 41 | 555 |
| Balances as of September 30, 2024 | 276 | $3 | $9,374 | $1,198 | $(40) | $— | $(1,031) | $1,014 | $10,517 |
(a) During the third quarter of 2024, restrictions lapsed on 435,719 shares of GE Vernova common stock in connection with the vesting of
performance shares originally awarded by General Electric Company, now operating as GE Aerospace. We withheld 218,290 shares of
GE Vernova common stock to satisfy tax withholding obligations, resulting in $40 million of Treasury common stock.
(b) Primarily relates to proceeds from the sale of an approximately 16% equity interest in GE Vernova T&D India Ltd, a power transmission
and distribution solution provider, in the third quarter of 2024, net of directly attributable taxes.
2025 3Q FORM 10-Q 11
NOTE 1**.** ORGANIZATION AND BASIS OF PRESENTATION
Organization. On April 2, 2024, General Electric Company, which now operates as GE Aerospace (GE or Parent) completed the previously
announced spin-off (the Spin-Off) of GE Vernova Inc. (the Company, GE Vernova, our, we, or us). See Note 1 and Note 24 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 for further information. Our common stock is listed under the symbol "GEV" on the New York Stock Exchange.
GE Vernova is a global leader in the electric power industry, with products and services that generate, transfer, orchestrate, convert, and
store electricity. We design, manufacture, deliver, and service technologies to create a more reliable and sustainable electric power system,
enabling electrification and decarbonization, underpinning the progress and prosperity of the communities we serve. We report our financial
results across three business segments:
- Our Power segment includes the design, manufacture, and servicing of gas, nuclear, hydro, and steam technologies, providing a
critical foundation of dispatchable, flexible, stable, and reliable power.
-
Our Wind segment includes our wind generation technologies, inclusive of onshore and offshore wind turbines and blades.
-
Our Electrification segment includes grid solutions, power conversion and storage, and electrification software technologies
required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of generation to point of
consumption. 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.
Basis of Presentation. For periods prior to the Spin-Off, the unaudited combined financial statements have been derived from the
consolidated financial statements and accounting records of GE, including the historical cost basis of assets and liabilities comprising the
Company, as well as the historical revenues, direct costs, and allocations of indirect costs attributable to the operations of the Company,
using the historical accounting policies applied by GE. The unaudited combined financial statements do not purport to reflect what the
results of operations, comprehensive income, financial position, or cash flows would have been had the Company operated as a separate,
stand-alone entity during the periods prior to the Spin-Off.
We have prepared the accompanying unaudited consolidated and combined financial statements pursuant to the rules and regulations of
the Securities and Exchange Commission (SEC) applicable to interim financial statements. Accordingly, certain information related to our
significant accounting policies and note disclosures normally included in financial statements prepared in accordance with U.S. generally
accepted accounting principles (U.S. GAAP) have been condensed or omitted. These unaudited consolidated and combined financial
statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to
fairly state, in all material respects, our financial position, results of operations, and cash flows for the periods presented. These unaudited
consolidated and combined financial statements should be read in conjunction with our audited consolidated and combined financial
statements, corresponding notes, and significant accounting policies in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2024. We have reclassified certain prior year amounts to conform to the current year’s presentation. The information
presented in tables throughout the notes is presented in millions of U.S. dollars unless otherwise stated. Certain columns and rows may not
add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions.
All intercompany balances and transactions within the Company have been eliminated in the consolidated and combined financial
statements. Transactions between the Company and GE have been included in these consolidated and combined financial statements.
Certain financing transactions with GE are deemed to have been settled immediately through Net parent investment in the Consolidated
and Combined Statement of Financial Position and are accounted for as a financing activity in the Consolidated and Combined Statement
of Cash Flows as Transfers from (to) Parent. Within the caption Increase (decrease) in accounts payable and equipment project payables
in our Consolidated and Combined Statement of Cash Flows, the increase (decrease) in due to related parties, which primarily included
transactions with GE, in the nine months ended September 30, 2024, was $(366) million.
For periods prior to the Spin-Off, the Consolidated and Combined Statement of Financial Position reflects all of the assets and liabilities of
GE that are specifically identifiable as being directly attributable to the Company, including Net parent investment as a component of equity.
Net parent investment represents GE’s historical investment in the Company and includes accumulated net income and losses attributable
to the Company, and the net effect of transactions with GE and its subsidiaries.
NOTE 2**.** SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Estimates and Assumptions**.** The preparation of the consolidated and combined financial statements in conformity with U.S. GAAP
requires management to make estimates based on assumptions about current, and for some estimates, future, economic and market
conditions which affect reported amounts and related disclosures in the consolidated and combined financial statements. We believe these
assumptions to be reasonable under the circumstances, and although our current estimates contemplate current and expected future
conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our
results of operations, financial position, and cash flows.
Estimates are used for, but are not limited to, determining revenues from contracts with customers, recoverability of inventory, long-lived
assets and investments, valuation of goodwill and intangible assets, useful lives used in depreciation and amortization, income taxes and
related valuation allowances, accruals for contingencies including legal, indemnifications, product warranties, and environmental, actuarial
assumptions used to determine costs of pension and postretirement benefits, valuation and recoverability of receivables, valuation of
derivatives, and valuation of assets acquired and liabilities assumed as a result of acquisitions.
Revenues from the Sale of Equipmen****t. Sales of equipment includes the sales of gas turbines, wind turbines and repower units, and other
power generation equipment related to energy production.
2025 3Q FORM 10-Q 12
Performance Obligations Satisfied Over Time. We recognize revenue on agreements for the sale of customized goods including power
generation equipment and long-term construction contracts on an over-time basis as we customize the customer’s equipment during the
manufacturing or integration process and obtain right to payment for work performed.
We recognize revenue as we perform under the arrangements using the percentage of completion method, which is based on our costs
incurred to date relative to our estimate of total expected costs and the transaction price to which we expect to be entitled. Variable
consideration is included in the transaction price if, in our judgment, it is expected that a significant future reversal of cumulative revenue
under the contract will not occur. Some of our contracts with customers for the sale of equipment contain clauses for the payment of
liquidated damages related to milestones established for on-time delivery or meeting certain performance specifications. On an ongoing
basis, we evaluate the probability and magnitude of liquidated damages. This is factored into our estimate of variable consideration using
the expected value method taking into consideration progress towards meeting contractual milestones, specified liquidated damages rates,
if applicable, and history of paying liquidated damages to the customer or similar customers. Our estimate of costs to be incurred to fulfill
our promise to a customer is based on our history of manufacturing or constructing similar assets for customers and is updated routinely to
reflect changes in quantity or cost of the inputs. In certain projects, such as new product introductions, the underlying technology or
promise to the customer is unique to what we have historically promised and reliably estimating the total cost to fulfill the promise to the
customer requires a significant level of judgment. Where the profit from a contract cannot be estimated reliably, revenue is only recognized
equaling the cost incurred to the extent that it is probable that the costs will be recovered. We provide for a potential loss on these
agreements when it is expected that we will incur such loss.
Primarily as a result of changes in product and project cost estimates, we recorded incremental contract losses for certain Offshore Wind
contracts of $171 million and $676 million for the three months ended and $296 million and $779 million for the nine months ended
September 30, 2025 and 2024, respectively. Further changes in our execution timelines or other adverse developments could result in
further losses beyond the amounts that we currently estimate.
Our billing terms for these over-time contracts are generally based on achieving specified milestones. The differences between the timing of
our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract
asset or contract liability positions. See Note 9 for further information.
For further information on our significant accounting policies, please refer to our Annual Report on Form 10-K for the fiscal year ended
December 31, 2024.
NOTE 3**.** ASSETS AND LIABILITIES HELD FOR SALE**.** During the third quarter of 2025, we signed a binding agreement to sell the
Proficy manufacturing software business (Proficy) within our Electrification Software business. The transaction is subject to information and
consultation with employee representatives and other customary closing conditions, including certain regulatory approvals. We expect the
transaction to close in the first half of 2026.
Additionally, during the third quarter of 2025, we signed a binding agreement to sell the issued and outstanding membership interests of
Linden VFT LLC, a merchant transmission facility owned by our Gas Power business. The transaction is subject to regulatory approvals
and customary closing conditions, and we expect to complete the sale in the near term.
The major components of assets and liabilities held for sale in the Company’s Consolidated and Combined Statement of Financial Position
are summarized as follows:
| ASSETS AND LIABILITIES HELD FOR SALE | September 30, 2025 |
| Property, plant, and equipment - net | $137 |
| Goodwill | 299 |
| Other assets | 72 |
| Assets held for sale | $508 |
| Other liabilities | $80 |
| Liabilities held for sale | $80 |
NOTE 4**.** CURRENT AND LONG-TERM RECEIVABLES
| CURRENT RECEIVABLES – NET | September 30, 2025 | December 31, 2024 |
| Customer receivables | $5,661 | $6,312 |
| Non-income based tax receivables | 690 | 814 |
| Supplier advances and other receivables | 1,466 | 1,514 |
| Other receivables | $2,156 | $2,328 |
| Allowance for credit losses | (443) | (464) |
| Total current receivables – net | $7,374 | $8,177 |
2025 3Q FORM 10-Q 13
Activity in the allowance for credit losses related to current receivables for the nine months ended September 30, 2025 and 2024 consists
of the following:
| ALLOWANCE FOR CREDIT LOSSES | 2025 | 2024 |
| Balance as of January 1 | $464 | $515 |
| Net additions (releases) charged to costs and expenses | (1) | 34 |
| Write-offs, net | (27) | (15) |
| Foreign exchange and other | 6 | (33) |
| Balance as of September 30 | $443 | $501 |
Sales of customer receivables. From time to time, the Company sells current or long-term receivables to third parties in response to
customer-sponsored requests or programs, to facilitate sales, or for risk mitigation purposes. The Company sold current customer
receivables to third parties and subsequently collected $971 million and $1,073 million in the nine months ended September 30, 2025 and
2024, respectively. Transactions under these arrangements are accounted for as sales, and the sold receivables are removed from the
Company's balance sheet. The Company maintains no continuing involvement with respect to the receivables being transferred.
| LONG-TERM RECEIVABLES | September 30, 2025 | December 31, 2024 |
| Long-term customer receivables | $307 | $282 |
| Supplier advances | 335 | 285 |
| Non-income based tax receivables | 84 | 74 |
| Other receivables | 523 | 247 |
| Allowance for credit losses | (120) | (142) |
| Total long-term receivables – net | $1,129 | $745 |
NOTE 5**.** INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS
| September 30, 2025 | December 31, 2024 | |
| Raw materials and work in process | $6,157 | $5,328 |
| Finished goods | 3,064 | 2,490 |
| Deferred inventory costs(a) | 812 | 769 |
| Inventories, including deferred inventory costs | $10,032 | $8,587 |
(a) Represents cost deferral for shipped goods (such as components for wind turbine assemblies in our Wind segment) and labor and
overhead costs on time and material service contracts (primarily originating in our Power segment) and other costs where the criteria for
revenue recognition have not yet been met.
NOTE 6**.** PROPERTY, PLANT, AND EQUIPMENT
| September 30, 2025 | December 31, 2024 | |
| Original cost | $12,938 | $12,207 |
| Less: Accumulated depreciation and amortization | (8,142) | (7,729) |
| Right-of-use operating lease assets | 758 | 671 |
| Property, plant, and equipment – net | $5,555 | $5,150 |
Depreciation and amortization related to property, plant, and equipment was $152 million and $336 million in the three months ended and
$446 million and $715 million in the nine months ended September 30, 2025 and 2024, respectively.
In the third quarter of 2024, we recognized a non-cash pre-tax impairment charge of $108 million related to property, plant, and equipment
due to restructuring at our Hydro Power business, which is included in depreciation and amortization. This charge was recorded in Cost of
sales in our Consolidated and Combined Statement of Income (Loss). See Note 22 for further information.
NOTE 7**.** LEASES**.** Our operating lease liabilities, included in All other current liabilities and All other liabilities in our Consolidated and
Combined Statement of Financial Position, were $801 million and $725 million as of September 30, 2025 and December 31, 2024,
respectively. Expense related to our operating lease portfolio, primarily from our long-term fixed leases, was $59 million and $58 million for
three months ended and $175 million and $193 million for the nine months ended September 30, 2025 and 2024, respectively. Our finance
lease liabilities, included in All other current liabilities and All other liabilities in our Consolidated and Combined Statement of Financial
Position, were $279 million and $266 million as of September 30, 2025 and December 31, 2024, respectively.
2025 3Q FORM 10-Q 14
NOTE 8**.** GOODWILL AND OTHER INTANGIBLE ASSETS
| GOODWILL | Power | Wind | Electrification | Total |
| Balance as of January 1, 2025 | $310 | $3,035 | $918 | $4,263 |
| Acquisitions | 15 | — | 71 | 86 |
| Currency exchange and other(a) | 3 | 271 | (296) | (22) |
| Balance as of September 30, 2025 | $328 | $3,306 | $693 | $4,327 |
(a) During the third quarter of 2025, we signed a binding agreement to sell the Proficy business, which resulted in $299 million of goodwill
being reclassified to Assets held for sale on the Consolidated and Combined Statement of Financial Position. See Note 3 for further
information.
We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or
circumstances between annual impairment testing dates. In the third quarter of 2025, we did not identify any reporting units that required an
interim impairment test.
Intangible assets. All intangible assets are subject to amortization. Intangible assets decreased $66 million during the nine months ended
September 30, 2025, primarily as a result of amortization, partially offset by acquisitions. Amortization expense was $61 million and $63
million for the three months ended and $177 million and $188 million for the nine months ended September 30, 2025 and 2024,
respectively.
NOTE 9**.** CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME
Contract assets reflect revenue recognized on contracts in excess of billings based on contractual terms. Contract liabilities primarily
represent cash received from customers under ordinary commercial payment terms in advance of delivery of equipment orders or servicing
of customers’ installed base.
Contract and other deferred assets increased $795 million in the nine months ended September 30, 2025 primarily due to the timing of
revenue recognition ahead of billing milestones on equipment and other service agreements. Contract liabilities and deferred income
increased $2,560 million in the nine months ended September 30, 2025 primarily due to new collections received in excess of revenue
recognition at Power and Electrification, partially offset by revenue recognition in excess of collections at Wind. Net contractual service
agreements increased primarily due to revenues recognized of $3,824 million, partially offset by billings of $3,781 million and net
unfavorable changes in estimated profitability of $36 million.
Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $9,754 million and $7,761
million for the nine months ended September 30, 2025 and 2024, respectively.
| CONTRACT AND OTHER DEFERRED ASSETS | ||||
| September 30, 2025 | Power | Wind | Electrification | Total |
| Contractual service agreement assets | $5,535 | $— | $— | $5,535 |
| Equipment and other service agreement assets | 1,712 | 842 | 1,396 | 3,950 |
| Current contract assets | $7,247 | $842 | $1,396 | $9,485 |
| Non-current contract and other deferred assets(a) | 474 | 2 | 11 | 486 |
| Total contract and other deferred assets | $7,720 | $844 | $1,406 | $9,971 |
| December 31, 2024 | Power | Wind | Electrification | Total |
| Contractual service agreement assets | $5,321 | $— | $— | $5,321 |
| Equipment and other service agreement assets | 1,622 | 538 | 1,139 | 3,300 |
| Current contract assets | $6,944 | $538 | $1,139 | $8,621 |
| Non-current contract and other deferred assets(a) | 536 | 8 | 11 | 555 |
| Total contract and other deferred assets | $7,479 | $546 | $1,150 | $9,176 |
(a) Primarily represents amounts due from customers at Gas Power for the sale of services upgrades, which we collect through incremental
fixed or usage-based fees from servicing the equipment under contractual service agreements.
| CONTRACT LIABILITIES AND DEFERRED INCOME | ||||
| September 30, 2025 | Power | Wind | Electrification | Total |
| Contractual service agreement liabilities | $1,989 | $— | $— | $1,989 |
| Equipment and other service agreement liabilities | 10,617 | 2,042 | 5,204 | 17,865 |
| Current deferred income | 21 | 227 | 49 | 298 |
| Contract liabilities and current deferred income | $12,627 | $2,269 | $5,254 | $20,151 |
| Non-current deferred income | 18 | 121 | 14 | 153 |
| Total contract liabilities and deferred income | $12,645 | $2,390 | $5,268 | $20,304 |
2025 3Q FORM 10-Q 15
| December 31, 2024 | Power | Wind | Electrification | Total |
| Contractual service agreement liabilities | $1,789 | $— | $— | $1,789 |
| Equipment and other service agreement liabilities | 7,879 | 3,684 | 3,946 | 15,511 |
| Current deferred income | 6 | 193 | 88 | 287 |
| Contract liabilities and current deferred income | $9,674 | $3,877 | $4,034 | $17,587 |
| Non-current deferred income | 29 | 112 | 16 | 157 |
| Total contract liabilities and deferred income | $9,703 | $3,989 | $4,050 | $17,744 |
Remaining Performance Obligation (RPO). As of September 30, 2025, the aggregate amount of the contracted revenues allocated to our
unsatisfied (or partially unsatisfied) performance obligations were $135,269 million. We expect to recognize revenue as we satisfy our
remaining performance obligations as follows:
(1)Equipment-related RPO of $54,092 million of which 41%, 71%, and 97% is expected to be recognized within 1, 2, and 5 years,
respectively, and the remaining thereafter.
(2)Services-related RPO of $81,177 million of which 17%, 53%, 78%, and 91% is expected to be recognized within 1, 5, 10, and 15
years, respectively, and the remaining thereafter.
Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related RPO.
NOTE 10**.** CURRENT AND ALL OTHER ASSETS**.** All other current assets primarily include investment securities, prepaid taxes and
deferred charges and derivative instruments (see Note 19). All other current assets increased $370 million for the nine months ended
September 30, 2025 primarily due to an increase in investment securities as a result of the reclassification of China XD Electric Co., Ltd
from equity method investments (see Note 11). The fair value of our investment in China XD Electric Co., Ltd was $340 million as of
September 30, 2025, which is considered to be Level 1. All other assets primarily include pension surplus, long-term receivables (see Note
4), taxes receivable, and prepaid taxes and deferred charges. All other assets increased $643 million in the nine months ended September
30, 2025 primarily due to increases in long-term receivables and pension surplus.
NOTE 11**.** EQUITY METHOD INVESTMENTS
| Equity method investment balance | Equity method income (loss) | |||||||
| Three months ended September 30 | Nine months ended September 30 | |||||||
| September 30, 2025 | December 31, 2024 | 2025 | 2024 | 2025 | 2024 | |||
| Power(a) | $925 | $919 | $19 | $(11) | $25 | $29 | ||
| Wind | 32 | 49 | — | — | — | 1 | ||
| Electrification(b) | 463 | 743 | 57 | 36 | 161 | 78 | ||
| Corporate(c) | 495 | 438 | 2 | (26) | 19 | (64) | ||
| Total | $1,916 | $2,149 | $78 | $(1) | $205 | $44 |
(a) Includes Aero Alliance, our joint venture with Baker Hughes Company, that supports our customers through the fulfillment of
aeroderivative engines, spare parts, repairs, and maintenance services. Purchases of parts and services from the joint venture were
$206 million and $131 million in the three months ended and $498 million and $494 million in the nine months ended September 30,
2025 and 2024, respectively. The Company owed Aero Alliance $91 million and $24 million as of September 30, 2025 and December
31, 2024, respectively. These amounts have been recorded in Accounts payable and equipment project payables on the Consolidated
and Combined Statement of Financial Position.
(b) In the first quarter of 2025, we sold a portion of our shares in China XD Electric Co., Ltd., which is publicly traded on the Shanghai Stock
Exchange, decreasing our ownership percentage in the investee by approximately 2%. In the third quarter of 2025, we sold a further
portion of our shares, decreasing our ownership percentage by approximately 3%. As a result, the investment was reclassified to All
other current assets on the Consolidated and Combined Statement of Financial Position. See Notes 10 and 18 for further information.
(c) In connection with GE retaining certain renewable energy U.S. tax equity investments as part of the Spin-Off, the Company recognized
a $136 million benefit related to deferred intercompany profit from historical equipment sales to the related investees, recorded in Cost
of equipment in the second quarter of 2024.
NOTE 12**.** ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES
| September 30, 2025 | December 31, 2024 | |
| Trade payables | $5,887 | $4,966 |
| Supply chain finance programs | 2,172 | 2,051 |
| Equipment project payables | 1,210 | 1,211 |
| Non-income based tax payables | 272 | 375 |
| Accounts payable and equipment project payables | $9,541 | $8,602 |
We facilitate voluntary supply chain finance programs with third parties, which provide participating suppliers the opportunity to sell their GE
Vernova receivables to third parties at the sole discretion of both the suppliers and the third parties. Total supplier invoices paid through
these third-party programs were $3,166 million and $2,642 million for the nine months ended September 30, 2025 and 2024, respectively.
NOTE 13**.** POSTRETIREMENT BENEFIT PLANS**.** GE Vernova sponsored plans, including those allocated to GE Vernova in
connection with the Spin-Off, are presented in three categories: principal pension plans, other pension plans, and principal retiree benefit
plans. See Note 13 in the Notes in our audited consolidated and combined financial statements in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2024 for further information.
2025 3Q FORM 10-Q 16
The components of benefit plans cost (income) other than the service cost are included in the caption Non-operating benefit income in our
Consolidated and Combined Statement of Income (Loss).
| 2025 | 2024 | ||||||
| Three months ended September 30 | Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | |
| Service cost – operating | $6 | $7 | $1 | $6 | $8 | $1 | |
| Interest cost | 140 | 58 | 10 | 137 | 57 | 9 | |
| Expected return on plan assets | (178) | (82) | — | (186) | (84) | — | |
| Amortization of net loss (gain) | (50) | 10 | (10) | (46) | 8 | (11) | |
| Amortization of prior service cost (credit) | — | (2) | (14) | 2 | (2) | (15) | |
| Curtailment/settlement loss (gain) | — | — | (1) | — | — | — | |
| Non-operating benefit costs (income) | $(88) | $(16) | $(14) | $(93) | $(21) | $(16) | |
| Net periodic expense (income) | $(82) | $(8) | $(13) | $(87) | $(13) | $(15) |
| 2025 | 2024 | ||||||
| Nine months ended September 30 | Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | |
| Service cost – operating | $17 | $21 | $4 | $20 | $24 | $4 | |
| Interest cost | 420 | 169 | 29 | 411 | 170 | 28 | |
| Expected return on plan assets | (535) | (237) | — | (557) | (250) | — | |
| Amortization of net loss (gain) | (149) | 30 | (29) | (138) | 24 | (32) | |
| Amortization of prior service cost (credit) | — | (6) | (41) | 5 | (5) | (45) | |
| Curtailment/settlement loss (gain) | — | 1 | (1) | — | (11) | — | |
| Non-operating benefit costs (income) | $(263) | $(44) | $(41) | $(279) | $(71) | $(49) | |
| Net periodic expense (income) | $(246) | $(22) | $(37) | $(260) | $(47) | $(44) |
Defined Contribution Plan. GE Vernova sponsors a defined contribution plan for its eligible U.S. employees that is similar to the
corresponding GE-sponsored defined contribution plan that was in effect prior to the Spin-Off. Expenses associated with their participation
in GE Vernova's plan beginning on April 2, 2024 and in GE's plan through April 1, 2024 represent the employer contributions for GE
Vernova employees and were $33 million and $29 million for the three months ended and $119 million and $110 million for the nine months
ended September 30, 2025 and 2024, respectively.
NOTE 14**.** CURRENT AND ALL OTHER LIABILITIES**.** All other current liabilities primarily include liabilities related to employee
compensation and benefits, equipment projects and other commercial liabilities, product warranties (see Note 21), liabilities related to
business disposition activities, and restructuring liabilities (see Note 22). All other current liabilities increased $3 million in the nine months
ended September 30, 2025. All other liabilities primarily include liabilities related to uncertain and other income taxes, product warranties
(see Note 21), legal liabilities (see Note 21), asset retirement obligations (see Note 21), operating lease liabilities (see Note 7), equipment
projects and other commercial liabilities, and indemnifications in connection with the Spin-Off (see Note 21). All other liabilities increased
$266 million in the nine months ended September 30, 2025 primarily due to an increase in product warranties and operating lease
liabilities.
NOTE 15**.** INCOME TAXES**.** The Company’s income tax provision through March 31, 2024 was prepared based on a separate return
basis. Following the Spin-off, the Company's income tax provision is prepared on a stand-alone basis.
Our effective tax rate was 39.2% and 29.8% for the three and nine months ended September 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 and the
finalization of the Company's pre-Spin-Off tax attributes that increased the Company's current provision for income taxes, partially offset by
an income tax benefit from stock-based compensation.
We recorded an income tax benefit on a pre-tax loss with an effective tax rate of 18.9% for the three months ended September 30, 2024.
The effective tax rate was lower than the U.S. statutory rate of 21% primarily due to a portion of the pre-tax loss providing no tax benefit in
certain jurisdictions.
We recorded an income tax expense on pre-tax income with an effective tax rate of 22.4% for the nine months ended September 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 lower effective tax rate on a foreign pre-tax gain from the sale of a portion of Steam Power nuclear activities to
Electricité de France S.A. (EDF) which was completed in the second quarter of 2024.
The Organization for Economic Co-operation and Development has proposed a global minimum tax of 15% of reported profits (Pillar Two)
and many countries have incorporated Pillar Two model rule concepts into their domestic laws. Although the model rules provide a
framework for applying the minimum tax, countries may enact Pillar Two slightly differently than the model rules and on different timelines
and may adjust domestic tax incentives in response to Pillar Two. We incurred insignificant tax expenses in connection with Pillar Two in
the nine months ended September 30, 2025.
2025 3Q FORM 10-Q 17
Based on our assessment of the realizability of our deferred tax assets as of September 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 fourth quarter 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.
On July 4, 2025, the United States enacted House Resolution 1 of the 119th Congress (the Act). The Act did not have a significant impact
on our provision for income taxes for the three months ended September 30, 2025, and we do not anticipate a significant impact on our
effective tax rate for the full year 2025.
NOTE 16**.** ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) AND COMMON STOCK
| Currency translation adjustment | Benefit plans | Cash flow hedges | Total AOCI | |
| Balance as of July 1, 2025 | $(1,296) | $(217) | $68 | $(1,445) |
| AOCI before reclasses – net of taxes of $5, $(3), and $— | 31 | 21 | 23 | 75 |
| Reclasses from AOCI – net of taxes of $—, $(1), and $— | — | (72) | 4 | (68) |
| Less: AOCI attributable to noncontrolling interests | — | — | — | — |
| Balance as of September 30, 2025 | $(1,266) | $(268) | $95 | $(1,438) |
| Balance as of July 1, 2024 | $(1,441) | $333 | $77 | $(1,031) |
| Transfer or allocation of benefit plans – net of taxes of $—, $—, and $— | — | — | — | — |
| AOCI before reclasses – net of taxes of $—, $4, and $— | 99 | (12) | (18) | 69 |
| Reclasses from AOCI – net of taxes of $—, $—, and $— | — | (66) | (2) | (68) |
| Less: AOCI attributable to noncontrolling interests | — | — | — | — |
| Balance as of September 30, 2024 | $(1,342) | $254 | $57 | $(1,031) |
| Balance as of January 1, 2025 | $(1,734) | $(58) | $33 | $(1,759) |
| AOCI before reclasses – net of taxes of $3, $9, and $— | 471 | 6 | 39 | 516 |
| Reclasses from AOCI – net of taxes of $—, $(3), and $— | — | (214) | 22 | (192) |
| Less: AOCI attributable to noncontrolling interests | 3 | 1 | — | 4 |
| Balance as of September 30, 2025 | $(1,266) | $(268) | $95 | $(1,438) |
| Balance as of January 1, 2024 | $(1,335) | $674 | $26 | $(635) |
| Transfer or allocation of benefit plans – net of taxes of $—, $(207), and $— | — | (207) | — | (207) |
| AOCI before reclasses – net of taxes of $33, $14, and $— (a) | 105 | (4) | 10 | 111 |
| Reclasses from AOCI – net of taxes of $—, $(2), and $— (b) | (111) | (207) | 20 | (298) |
| Less: AOCI attributable to noncontrolling interests | — | 1 | — | 2 |
| Balance as of September 30, 2024 | $(1,342) | $254 | $57 | $(1,031) |
(a) Currency translation adjustment includes $39 million of AOCI allocated to GE Vernova in connection with the Spin-Off.
(b) The total reclassification of AOCI included $111 million of currency translation adjustment related to the sale of a portion of Steam Power
nuclear activities to EDF. See Notes 15 and 18 for further information.
Common Stock. On April 2, 2024, the Company began trading as an independent, publicly traded company under the stock symbol “GEV”
on the New York Stock Exchange. On April 2, 2024, there were 274,085,523 shares of GE Vernova common stock outstanding. On
September 30, 2025, there were 271,320,459 shares of GE Vernova common stock outstanding. On December 10, 2024, we announced
that the Board of Directors had authorized up to $6 billion of common stock repurchases. In connection with this authorization, we
repurchased 1.1 million and 6.3 million shares for $658 million and $2,241 million during the three and nine months ended September 30,
2025, respectively, excluding commission fees and excise taxes.
NOTE 17**.** EARNINGS PER SHARE INFORMATION**.** On April 2, 2024, there were approximately 274 million shares of GE Vernova
common stock outstanding. The computation of basic and diluted earnings (loss) per common share for all periods through April 1, 2024
was calculated using 274 million common shares and is net of Net loss (income) attributable to noncontrolling interests. For periods prior to
the Spin-Off, there were no dilutive equity instruments as there were no equity awards of GE Vernova outstanding prior to the Spin-Off. The
dilutive effect of outstanding stock options, restricted stock units, and performance share units is reflected in the denominator for diluted
earnings per share using the treasury stock method.
2025 3Q FORM 10-Q 18
| Three months ended September 30 | Nine months ended September 30 | ||||
| (In millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |
| Numerator: | |||||
| Net income (loss) | $453 | $(99) | $1,209 | $1,075 | |
| Net loss (income) attributable to noncontrolling interests | (1) | 3 | 11 | (7) | |
| Net income (loss) attributable to GE Vernova | $452 | $(96) | $1,220 | $1,068 | |
| Denominator: | |||||
| Basic weighted-average shares outstanding | 272 | 275 | 273 | 274 | |
| Dilutive effect of common stock equivalents | 3 | — | 4 | 3 | |
| Diluted weighted-average shares outstanding | 275 | 275 | 277 | 277 | |
| Basic earnings (loss) per share | $1.66 | $(0.35) | $4.47 | $3.90 | |
| Diluted earnings (loss) per share | $1.64 | $(0.35) | $4.41 | $3.85 | |
| Antidilutive securities(a) | 1 | 6 | 1 | 1 |
(a) Diluted earnings (loss) per share excludes certain shares issuable under share-based compensation plans because the effect would
have been antidilutive.
NOTE 18**.** OTHER INCOME (EXPENSE) – NET
| Three months ended September 30 | Nine months ended September 30 | ||||
| 2025 | 2024 | 2025 | 2024 | ||
| Equity method investment income (loss) (Note 11) | $78 | $(1) | $205 | $44 | |
| Net interest and investment income (loss)(a) | 91 | 21 | 125 | 48 | |
| Gains (losses) on purchases and sales of business interests(b) | 44 | 7 | 66 | 859 | |
| Derivative instruments (Note 19) | (17) | 7 | (8) | (6) | |
| Licensing income | 11 | 20 | 18 | 34 | |
| Other – net | 14 | 17 | 50 | 48 | |
| Total other income (expense) – net | $221 | $71 | $455 | $1,025 |
(a)Includes financial interest related to our normal business operations primarily with customers. Includes a pre-tax unrealized gain of $73
million related to our interest in China XD Electric Co., Ltd in the three and nine months ended September 30, 2025. See Notes 10 and
11 for further information.
(b)Included a pre-tax gain of $853 million related to the sale of a portion of Steam Power nuclear activities to EDF in the nine months
ended September 30, 2024. See Notes 15 and 16 for further information.
NOTE 19**.** FINANCIAL INSTRUMENTS
Loans and Other Receivables**.** The Company’s financial assets not carried at fair value primarily consist of loan receivables and
noncurrent customer and other receivables. The net carrying amount was $327 million and $318 million as of September 30, 2025 and
December 31, 2024, respectively. The estimated fair value was $319 million and $315 million as of September 30, 2025 and December 31,
2024, respectively. All of these assets are considered to be Level 3.
Derivatives and Hedging. Our primary objective in executing and holding derivatives is to reduce the earnings and cash flow volatility
associated with fluctuations in foreign currency exchange rates and commodity prices over the terms of our customer contracts. These
hedge contracts reduce, but do not entirely eliminate, the impact of foreign currency exchange rate and commodity price movements. The
Company does not enter into or hold derivative instruments for speculative trading purposes.
We use foreign currency contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets, and liabilities.
These contracts are generally one to 11 months in duration but with maximum remaining maturities of up to 14 years as of September 30,
Cash Flow Hedges. The total amount in AOCI related to cash flow hedges was a net $95 million gain and a net $33 million gain as of
September 30, 2025 and December 31, 2024, respectively, of which a net $46 million gain and a net $22 million gain, respectively, related
to our share of AOCI recognized at our non-consolidated joint ventures. We expect to reclassify $8 million of pre-tax net losses associated
with designated cash flow hedges to earnings in the next 12 months, contemporaneously with the earnings effects of the related forecasted
transactions. The Company reclassified net gains (losses) from AOCI into earnings of $(4) million and $2 million for the three months ended
and $(22) million and $(20) million for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the
maximum length of time over which we are hedging forecasted transactions was approximately 10 years.
Net Investment Hedges. We enter into foreign exchange forwards designated as the hedging instruments in net investment hedging
relationships in order to mitigate the foreign currency risk attributable to the translation of the Company’s net investment in certain non
USD-functional subsidiaries and equity method investees. The total amount in AOCI related to net investment hedges was a net gain of
$31 million and $33 million as of September 30, 2025 and December 31, 2024, respectively.
2025 3Q FORM 10-Q 19
The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated:
GROSS FAIR VALUE OF OUTSTANDING DERIVATIVE INSTRUMENTS
| September 30, 2025 | Gross Notional | All other current assets | All other assets | All other current liabilities | All other liabilities |
| Foreign currency exchange contracts accounted for as hedges | $6,718 | $89 | $122 | $35 | $56 |
| Foreign currency exchange contracts | 33,745 | 400 | 174 | 351 | 170 |
| Commodity and other contracts | 395 | 30 | 21 | 5 | 5 |
| Derivatives not accounted for as hedges | $34,140 | $429 | $195 | $356 | $175 |
| Total gross derivatives | $40,858 | $518 | $317 | $391 | $230 |
| Netting adjustment(a) | (291) | (152) | (289) | (152) | |
| Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | $227 | $165 | $102 | $78 |
(a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts
include fair value adjustments related to our own and counterparty non-performance risk.
| December 31, 2024 | Gross Notional | All other current assets | All other assets | All other current liabilities | All other liabilities |
| Foreign currency exchange contracts accounted for as hedges | $5,789 | $61 | $144 | $58 | $65 |
| Foreign currency exchange contracts | 34,244 | 479 | 159 | 483 | 144 |
| Commodity and other contracts | 436 | 12 | 20 | 12 | 2 |
| Derivatives not accounted for as hedges | $34,681 | $491 | $179 | $495 | $146 |
| Total gross derivatives | $40,469 | $552 | $323 | $552 | $211 |
| Netting adjustment(a) | (383) | (166) | (381) | (166) | |
| Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | $168 | $158 | $171 | $46 |
(a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts
include fair value adjustments related to our own and counterparty non-performance risk.
PRE-TAX GAINS (LOSSES) RECOGNIZED IN AOCI RELATED TO CASH FLOW AND NET INVESTMENT HEDGES
| Three months ended September 30 | Nine months ended September 30 | ||||
| 2025 | 2024 | 2025 | 2024 | ||
| Cash flow hedges | $2 | $(17) | $16 | $19 | |
| Net investment hedges | 1 | (6) | (2) | (2) |
The tables below show the effect of our derivative financial instruments in the Consolidated and Combined Statement of Income (Loss):
| Three months ended September 30, 2025 | Sales of equipment and services | Cost of equipment and services | Selling, general, and administrative expenses | Other income (expense) – net |
| Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) | $9,969 | $8,071 | $1,221 | $221 |
| Effects of cash flow hedges | $15 | $18 | $— | $— |
| Foreign currency exchange contracts | 3 | (1) | 4 | (17) |
| Commodity and other contracts | — | (5) | (9) | — |
| Effect of derivatives not designated as hedges | $3 | $(6) | $(5) | $(17) |
| Three months ended September 30, 2024 | ||||
| Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) | $8,913 | $7,804 | $1,226 | $71 |
| Effects of cash flow hedges | $2 | $— | $— | $— |
| Foreign currency exchange contracts | 6 | (16) | (48) | 6 |
| Commodity and other contracts | — | (1) | (6) | — |
| Effect of derivatives not designated as hedges | $6 | $(17) | $(55) | $6 |
2025 3Q FORM 10-Q 20
| Nine months ended September 30, 2025 | Sales of equipment and services | Cost of equipment and services | Selling, general, and administrative expenses | Other income (expense) – net |
| Total amount of income (expense) in the Consolidated and Combined Statement of Income (Loss) | $27,112 | $21,899 | $3,594 | $455 |
| Effects of cash flow hedges | $(4) | $18 | $— | $— |
| Foreign currency exchange contracts | 6 | (50) | (65) | (8) |
| Commodity and other contracts | — | (11) | (13) | — |
| Effect of derivatives not designated as hedges | $6 | $(60) | $(78) | $(8) |
| Nine months ended September 30, 2024 | ||||
| Total amount of income (expense) in the Consolidated and Combined Statement of Income (Loss) | $24,376 | $20,415 | $3,366 | $1,025 |
| Effects of cash flow hedges | $(5) | $14 | $— | $— |
| Foreign currency exchange contracts | — | 1 | (92) | (7) |
| Commodity and other contracts | — | (7) | (21) | — |
| Effect of derivatives not designated as hedges | $— | $(6) | $(113) | $(7) |
The amount excluded for cash flow hedges was a gain (loss) of $10 million and $1 million for the three months ended and $30 million and
$12 million for the nine months ended September 30, 2025 and 2024, respectively. These amounts are recognized in Sales of equipment,
Sales of services, Cost of equipment, and Cost of services in our Consolidated and Combined Statement of Income (Loss).
NOTE 20**.** VARIABLE INTEREST ENTITIES (VIEs)****. In our Consolidated and Combined Statement of Financial Position, we have
assets of $68 million and $111 million and liabilities of $115 million and $134 million as of September 30, 2025 and December 31, 2024,
respectively, from consolidated VIEs. These entities were created to manage our insurance exposure through an insurance captive and to
help our customers facilitate or finance the purchase of GE Vernova equipment and services, and have no features that could expose us to
losses that would significantly exceed the difference between the consolidated assets and liabilities.
Our investments in unconsolidated VIEs were $130 million and $90 million as of September 30, 2025 and December 31, 2024, respectively.
Of these investments, $71 million and $37 million as of September 30, 2025 and December 31, 2024, respectively, were owned by our
Financial Services business. Our maximum exposure to loss in respect of unconsolidated VIEs is increased by our commitments to make
additional investments in these entities described in Note 21.
NOTE 21**.** COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES
Commitments**.** We had total investment commitments of $16 million and unfunded lending commitments of $65 million at September 30,
- The commitments primarily consist of obligations to make investments or provide funding by our Gas Power and Financial Services
businesses. See Note 20 for further information.
Guarantees**.** As of September 30, 2025, we were committed under the following guarantee arrangements:
Credit support. We have provided $565 million of credit support on behalf of certain customers or associated companies, predominantly
joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees, and a line of credit to
support our consolidated subsidiaries. The liability for such credit support was $6 million.
Indemnification agreements. We have $1,010 million of indemnification commitments, including obligations arising from the Spin-Off, our
commercial contracts, and agreements governing the sale of business assets, for which we recorded a liability of $674 million. The liability
is primarily associated with cash and deposits, of which $325 million relates to cash transferred to the Company from GE as part of the
Spin-Off that is restricted in connection with certain legal matters related to legacy GE operations. The liability reflects the use of these
funds to settle any associated obligations and the return of any remaining cash to GE in a future reporting period once resolved. In addition,
the liability includes $219 million of indemnifications in connection with agreements entered into with GE related to the Spin-Off, including
the Tax Matters Agreement.
Product Warranties**.** We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates
are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts
provided. The liability for product warranties was $1,486 million and $1,370 million as of September 30, 2025 and December 31, 2024,
respectively.
Credit Facilities. We have $6,000 million of credit facilities consisting of (i) a five-year unsecured revolving credit facility in an aggregate
committed amount of $3,000 million and (ii) a standby letter of credit and bank guarantee facility in an aggregate committed amount of
$3,000 million. For further information, see Note 22 in the Notes to our consolidated and combined financial statements in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2024. Fees related to the unused portion of the facilities were insignificant in
both the three and nine months ended September 30, 2025.
Legal Matters**.** In the normal course of our business, we are involved from time to time in various arbitrations, class actions, litigation,
investigations, and other legal, regulatory, or governmental actions. See Note 22 in the Notes to our consolidated and combined financial
statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 for further information.
2025 3Q FORM 10-Q 21
Environmental and Asset Retirement Obligations. Our operations involve the use, disposal, and cleanup of substances regulated under
environmental protection laws and nuclear decommissioning regulations. We have obligations for ongoing and future environmental
remediation activities and may incur additional liabilities in connection with previously remediated sites. Additionally, like many other
industrial companies, we and our subsidiaries are defendants in various lawsuits related to alleged worker exposure to asbestos or other
hazardous materials. Liabilities for environmental remediation, nuclear decommissioning, and worker exposure claims exclude possible
insurance recoveries.
It is reasonably possible that our exposure will exceed amounts accrued. However, due to uncertainties about the status of laws,
regulations, technology, and information related to individual sites and lawsuits, such amounts are not reasonably estimable. Our reserves
related to environmental remediation and worker exposure claims recorded in All other liabilities were $133 million and $138 million as of
September 30, 2025 and December 31, 2024, respectively.
We record asset retirement obligations associated with the retirement of tangible long-lived assets as a liability in the period in which the
obligation is incurred and its fair value can be reasonably estimated. These obligations primarily represent nuclear decommissioning, legal
obligations to return leased premises to their initial state, or dismantle and repair specific alterations for certain leased sites. The liability is
measured at the present value of the obligation when incurred and is adjusted in subsequent periods. Corresponding asset retirement costs
are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset’s useful life. Our asset
retirement obligations were $548 million and $622 million as of September 30, 2025 and December 31, 2024, respectively, and are
recorded in All other current liabilities and All other liabilities in our Consolidated and Combined Statement of Financial Position. Of these
amounts, $466 million and $546 million were related to nuclear decommissioning obligations. The decrease in the liability balance was
primarily due to a settlement of a nuclear decommissioning obligation during the first quarter of 2025.
NOTE 22**.** RESTRUCTURING CHARGES AND SEPARATION COSTS
Restructuring and Other Charges. The Company has undertaken or committed to various restructuring initiatives, including workforce
reductions and the consolidation of manufacturing and service facilities. Restructuring and other charges primarily include employee-related
termination benefits associated with workforce reductions, facility exit costs, asset write-downs, and cease-use costs. We expect the
majority of costs to be incurred within two years of the commitment of a restructuring initiative.
This table is inclusive of all restructuring charges and the charges are shown below for the business where they originated. Separately, in
our reported segment results, major restructuring programs are excluded from measurement of segment operating performance for internal
and external purposes; those excluded amounts are reported in Restructuring and other charges. See Note 23 for further information.
| RESTRUCTURING AND OTHER CHARGES | Three months ended September 30 | Nine months ended September 30 | |||
| 2025 | 2024 | 2025 | 2024 | ||
| Workforce reductions | $74 | $48 | $144 | $159 | |
| Plant closures and associated costs and other asset write-downs | 5 | 160 | 37 | 251 | |
| Acquisition/disposition net charges and other | 8 | (1) | 17 | 7 | |
| Total restructuring and other charges | $86 | $207 | $197 | $417 | |
| Cost of equipment and services | $14 | $148 | $92 | $268 | |
| Selling, general, and administrative expenses | 72 | 59 | 105 | 149 | |
| Total restructuring and other charges | $86 | $207 | $197 | $417 | |
| Power | $34 | $192 | $58 | $289 | |
| Wind | — | 15 | 52 | 117 | |
| Electrification | 22 | — | 49 | 17 | |
| Other | 28 | — | 38 | (6) | |
| Total restructuring and other charges(a) | $86 | $207 | $197 | $417 |
(a) Includes $14 million and $144 million for the three months ended and $56 million and $237 million for the nine months ended
September 30, 2025 and 2024, respectively, primarily of non-cash impairment, accelerated depreciation, and other charges not
reflected in the liability table below.
Liabilities associated with restructuring activities were primarily related to workforce reductions and were recorded in All other current
liabilities, All other liabilities, and Non-current compensation and benefits.
| RESTRUCTURING LIABILITIES | 2025 | 2024 |
| Balance as of January 1 | $308 | $276 |
| Additions | 141 | 180 |
| Payments | (126) | (198) |
| Foreign exchange and other | (21) | 108 |
| Balance as of September 30 | $302 | $366 |
Total restructuring and other charges incurred for the three and nine months ended September 30, 2025 and 2024 primarily relate to
programs to simplify the organizational structure of, reduce operating costs in, and to right-size the businesses. On July 21, 2025, we
approved a restructuring plan (the Plan) accelerating previously announced enterprise transformation activities to reduce general and
administrative costs. We anticipate that the Plan will be substantially complete by mid-2026, subject to local law requirements, including
mandatory information and consultation with employee representatives in applicable locations. We expect to incur approximately
$250 million to $275 million in costs in connection with the Plan, primarily consisting of termination benefits associated with a reduction in
2025 3Q FORM 10-Q 22
the workforce, with approximately $200 million to $225 million of the costs resulting in future cash expenditures. We estimate the savings
on the Plan to be approximately $250 million, with savings beginning in 2026.
The estimates of the costs that we expect to incur in connection with the Plan, and the timing thereof, are subject to a number of
assumptions, including local law requirements in various jurisdictions, and actual amounts may differ from the estimates discussed above.
In addition, we may incur other costs or cash expenditures not currently contemplated due to unanticipated events that may occur, including
in connection with the implementation of the Plan. In the third quarter of 2025, we incurred $81 million of costs related to the Plan.
In the third quarter of 2024, in order to transform and optimize our global footprint, we announced the restructuring of our Hydro Power
business, as a result we recognized $146 million of charges, which primarily relates to a non-cash pre-tax impairment charge of property,
plant and equipment. See Note 6 for further information.
Separation Costs. In connection with the Spin-Off, the Company recognized separation costs (benefits) of $43 million and $27 million for
the three months ended and $122 million and $(64) million for nine months ended September 30, 2025 and 2024, respectively, in our
Consolidated and Combined Statement of Income (Loss). Separation costs include system implementations, advisory fees, one-time stock
option grant, and other one-time costs, which are primarily recorded in Selling, general, and administrative costs. In addition, in the second
quarter of 2024, in connection with GE retaining certain renewable energy U.S. tax equity investments as part of the Spin-Off, the Company
recognized a $136 million benefit related to deferred intercompany profit from historical equipment sales to the related investees, recorded
in Cost of equipment. See Note 11 for further information.
NOTE 23**.** SEGMENT INFORMATION**.** Operating segments include components of an enterprise about which separate financial
information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker (CODM) for the purpose of assessing
performance and allocating resources. The Company’s CODM is its Chief Executive Officer (CEO). Our operating activities are managed
through three segments: Power, Wind, and Electrification. These segments have been identified based on the nature of the products and
services sold and how the Company manages its operations.
The performance of these segments is principally measured based on revenues and segment EBITDA. Segment EBITDA is determined
based on the performance measures used by our CEO to assess the performance of each business in a given period. In connection with
that assessment, the CEO may exclude matters, such as charges for impairments, significant higher-cost restructuring programs,
manufacturing footprint rationalization and other similar expenses, acquisition costs and other related charges, certain gains and losses
from acquisitions or dispositions, and certain other non-operational items.
Consistent accounting policies have been applied by all segments for all reporting periods. See Note 1 for a description of our reportable
segments.
| Three months ended September 30 | Nine months ended September 30 | ||||
| TOTAL SEGMENT REVENUES BY BUSINESS UNIT | 2025 | 2024 | 2025 | 2024 | |
| Gas Power | $3,923 | $3,466 | $11,386 | $9,966 | |
| Nuclear Power | 251 | 167 | 640 | 618 | |
| Hydro Power | 223 | 181 | 581 | 544 | |
| Steam Power | 442 | 393 | 1,413 | 1,569 | |
| Power | $4,838 | $4,206 | $14,019 | $12,696 | |
| Onshore Wind | $2,402 | $2,355 | $5,947 | $4,974 | |
| Offshore Wind | 195 | 388 | 624 | 1,183 | |
| LM Wind Power | 51 | 148 | 171 | 436 | |
| Wind | $2,647 | $2,891 | $6,742 | $6,592 | |
| Grid Solutions | $1,747 | $1,270 | $4,591 | $3,521 | |
| Power Conversion & Storage | 621 | 440 | 1,413 | 1,202 | |
| Electrification Software | 234 | 218 | 678 | 646 | |
| Electrification | $2,601 | $1,928 | $6,682 | $5,369 | |
| Total segment revenues | $10,087 | $9,025 | $27,443 | $24,657 |
2025 3Q FORM 10-Q 23
| SEGMENT EBITDA | ||||
| Three months ended September 30, 2025 | Power | Wind | Electrification | Total |
| Equipment revenues | $1,668 | $2,194 | $2,019 | $5,880 |
| Services revenues | 3,088 | 444 | 545 | 4,078 |
| Intersegment revenues | 83 | 10 | 37 | 130 |
| Segment revenues | 4,838 | 2,647 | 2,601 | 10,087 |
| Other revenues and elimination of intersegment revenues | (119) | |||
| Total revenues | 9,969 | |||
| Less:(a) | ||||
| Cost of revenues(b) | 3,663 | 2,532 | 1,824 | |
| Selling, general, and administrative expenses(b) | 436 | 118 | 336 | |
| Research and development expenses(b) | 139 | 43 | 115 | |
| Other segment items(c) | (45) | 16 | (67) | |
| Segment EBITDA | $645 | $(61) | $393 | $977 |
| Nine months ended September 30, 2025 | Power | Wind | Electrification | Total |
| Equipment revenues | $4,549 | $5,386 | $5,037 | $14,971 |
| Services revenues | 9,267 | 1,329 | 1,515 | 12,111 |
| Intersegment revenues | 203 | 28 | 130 | 361 |
| Segment revenues | 14,019 | 6,742 | 6,682 | 27,443 |
| Other revenues and elimination of intersegment revenues | (330) | |||
| Total revenues | 27,112 | |||
| Less:(a) | ||||
| Cost of revenues(b) | 10,482 | 6,598 | 4,626 | |
| Selling, general, and administrative expenses(b) | 1,339 | 393 | 1,000 | |
| Research and development expenses(b) | 371 | 117 | 308 | |
| Other segment items(c) | (104) | 8 | (181) | |
| Segment EBITDA | $1,931 | $(373) | $929 | $2,487 |
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
Intersegment expenses are included within the amounts shown.
(b) Excludes depreciation and amortization expenses.
(c) Primarily includes equity method investment income and other interest and investment income.
| Three months ended September 30, 2024 | Power | Wind | Electrification | Total |
| Equipment revenues | $1,378 | $2,488 | $1,419 | $5,286 |
| Services revenues | 2,773 | 391 | 457 | 3,621 |
| Intersegment revenues | 55 | 12 | 52 | 120 |
| Segment revenues | 4,206 | 2,891 | 1,928 | 9,025 |
| Other revenues and elimination of intersegment revenues | (112) | |||
| Total revenues | 8,913 | |||
| Less:(a) | ||||
| Cost of revenues(b) | 3,186 | 2,998 | 1,362 | |
| Selling, general, and administrative expenses(b) | 479 | 138 | 328 | |
| Research and development expenses(b) | 91 | 59 | 84 | |
| Other segment items(c) | (50) | 13 | (47) | |
| Segment EBITDA | $499 | $(317) | $201 | $383 |
| Nine months ended September 30, 2024 | Power | Wind | Electrification | Total |
| Equipment revenues | $3,847 | $5,375 | $3,868 | $13,090 |
| Services revenues | 8,725 | 1,191 | 1,335 | 11,251 |
| Intersegment revenues | 125 | 26 | 166 | 317 |
| Segment revenues | 12,696 | 6,592 | 5,369 | 24,657 |
| Other revenues and elimination of intersegment revenues | (281) | |||
| Total revenues | 24,376 | |||
| Less:(a) | ||||
| Cost of revenues(b) | 9,638 | 6,583 | 3,820 | |
| Selling, general, and administrative expenses(b) | 1,486 | 430 | 973 | |
| Research and development expenses(b) | 257 | 180 | 259 | |
| Other segment items(c) | (142) | 6 | (79) | |
| Segment EBITDA | $1,457 | $(607) | $396 | $1,247 |
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
Intersegment expenses are included within the amounts shown.
(b) Excludes depreciation and amortization expenses.
(c) Primarily includes equity method investment income and other interest and investment income.
2025 3Q FORM 10-Q 24
| RECONCILIATION OF SEGMENT EBITDA TO NET INCOME (LOSS) | |||||
| Three months ended September 30 | Nine months ended September 30 | ||||
| 2025 | 2024 | 2025 | 2024 | ||
| Segment EBITDA | $977 | $383 | $2,487 | $1,247 | |
| Corporate and other(a) | (166) | (140) | (448) | (290) | |
| Restructuring and other charges | (83) | (209) | (192) | (419) | |
| Gains (losses) on purchases and sales of business interests(b) | 113 | — | 131 | 842 | |
| Separation (costs) benefits(c) | (43) | (27) | (122) | 64 | |
| Arbitration refund(d) | — | — | — | 254 | |
| Non-operating benefit income | 115 | 130 | 340 | 399 | |
| Depreciation and amortization(e) | (212) | (289) | (617) | (734) | |
| Interest and other financial charges – net(f) | 44 | 35 | 141 | 93 | |
| Benefit (provision) for income taxes | (292) | 17 | (510) | (380) | |
| Net income (loss) | $453 | $(99) | $1,209 | $1,075 |
(a) Includes interest expense (income) of zero and $(1) million and benefit (provision) for income taxes of zero and $6 million for the three
months ended September 30, 2025 and 2024, respectively, as well as interest expense (income) of $(1) million and $11 million and
benefit (provision) for income taxes of $(4) million and $70 million for the nine months ended September 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.
(b) Includes unrealized (gains) losses related to our interest in China XD Electric Co., Ltd, recorded in Net interest and investment income
(loss) which is part of Other income (expense) - net. See Note 18 for further information.
(c) 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.
(d) 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 in the second quarter of 2024.
(e) 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.
(f) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business
operations primarily with customers.
| ASSETS BY SEGMENT | September 30, 2025 | December 31, 2024 |
| Power | $24,956 | $24,161 |
| Wind | 10,894 | 9,970 |
| Electrification | 8,426 | 7,402 |
| Other(a) | 10,122 | 9,952 |
| Total assets | $54,398 | $51,485 |
(a)We classify deferred tax assets as "Other" for purposes of this disclosure.
| PROPERTY, PLANT, AND EQUIPMENT ADDITIONS | Three months ended September 30 | Nine months ended September 30 | |||
| 2025 | 2024 | 2025 | 2024 | ||
| Power | $107 | $67 | $260 | $166 | |
| Wind | 61 | 45 | 157 | 210 | |
| Electrification | 41 | 38 | 110 | 74 | |
| Other | 33 | 8 | 68 | 79 | |
| Total | $243 | $158 | $595 | $530 |
| DEPRECIATION AND AMORTIZATION | Three months ended September 30 | Nine months ended September 30 | |||
| 2025 | 2024 | 2025 | 2024 | ||
| Power | $116 | $133 | $347 | $372 | |
| Wind | 56 | 127 | 161 | 259 | |
| Electrification | 25 | 22 | 68 | 66 | |
| Other | 16 | 117 | 47 | 206 | |
| Total | $213 | $399 | $623 | $903 |
2025 3Q FORM 10-Q 25
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