Remaining Performance Obligations (RPO) increased to $119.0 billion, driven by a $7.1 billion increase in Electrification. This reflects strong demand for the company's grid solutions and power conversion technologies, indicating a positive outlook for future revenue generation in this segment.

The company has simplified its segment management structure and product offerings, focusing on fewer and more reliable workhorse products. This shift is expected to improve cost and quality, and workhorse products account for approximately 70% of equipment RPO.

The company completed the sale of part of its nuclear activities within the Steam Power business to EDF, generating net cash proceeds of $0.6 billion and a pre-tax gain of $1.0 billion. This strategic move allows the company to focus on higher-growth areas while monetizing existing assets.

The company has proactively implemented lean initiatives to sustain cost productivity, collaborating closely with suppliers and adjusting product and service pricing in line with market demand, inflation, and industry dynamics. This focus on cost control is crucial for maintaining competitiveness and profitability.

The company continues to experience pressure related to product and project costs and execution timelines in Offshore Wind. Management is committed to driving quality improvements, installation efficiencies, and cost productivity, indicating a proactive approach to addressing these challenges.

The company maintains a strong focus on underwriting discipline and risk management to secure deals that meet financial hurdles and ensure confident delivery for customers. This highlights management's commitment to responsible growth and profitability.

The company acknowledges that it provides complex and specialized products, solutions, and services, and that actual or perceived quality issues or safety failures could have a material adverse effect on its business. This risk is particularly pronounced in connection with the introduction of new technology.

The company faces supply chain shortages, inflationary pressures, shortages of skilled labor, transportation and logistics challenges, and manufacturing disruptions that impact revenues, profitability, cash flow, and timeliness in fulfilling customer orders. These challenges are expected to persist.

The company relies on a single supplier or a small number of suppliers for certain materials and components, including some semiconductor chips, cobalt, certain steel, hafnium, and other rare earth metals. Disruption to these suppliers could adversely affect the company's ability to manufacture products or provide services.

The company faces growing competition from emerging threats due to increasing demand exceeding available capacity for products and services that supply the electrical power industry. The ability to reduce cycle times and ensure available capacity is expected to allow the company to remain competitive.

GE Vernova's businesses' ability to supply the electric power industry with a broad array of advanced technologies for an intelligent, sustainable power system that help customers accelerate the energy transition is a key differentiator among various of our competitors.

The company competes based on product performance, quality, branding, service and/or price across the industries and geographies served. Various companies compete with the company across single or multiple products and services.

The company is using Lean to improve its cost structure and productivity levels across its business and corporate functions. Proactively implemented lean initiatives to sustain cost productivity, collaborated closely with suppliers, and adjusted product and service pricing in line with market demand, inflation, and industry dynamics.

The company is continuing its restructuring program to reduce its operating costs and are seeing the benefits both operationally and financially. This program includes simplifying segment management structure and portfolio of product offerings.

The company manages supply chain challenges through long-term agreements with suppliers, developing relationships with alternative suppliers, driving productivity initiatives in manufacturing operations, providing training to employees, developing alternate transportation routes, modes, and providers, and sharing rising costs with customers.

GE Vernova's R&D efforts focus on driving the energy transition. The company expects to invest approximately $5 billion of cumulative R&D from 2025 through 2028 across its businesses, with approximately half of this R&D focused on continuously industrializing existing products and supporting the installed base.

The company has a substantial portfolio of intellectual property (IP) assets, registered and unregistered, that protect both its investments in R&D across its businesses as well as its products and services. Patents are an important part of the IP strategy.

Advanced Research partners with the company's businesses on programs to create the technology breakthroughs that will feed future product roadmaps. They are guided by customers' demands for sustainable, affordable, resilient, and secure energy.

The company is committed to return at least 1/3 of its free cash flow to stockholders. The Board initiated a quarterly cash dividend and a share repurchase authorization of up to $6 billion.

Capital allocation is focused on generating cash flow to enable attractive stockholder returns. This includes allocating capital as a whole and within the various businesses.

GE Vernova's R&D efforts focus on driving the energy transition. The company is engineering the technologies, forging the partnerships, and delivering innovations to electrify and decarbonize the world.

The company's integration of sustainability into its core business strategy and culture reflects its strategic imperative to electrify and decarbonize the world and to play a crucial role in the energy transition. The sustainability framework is guided by a commitment to help the energy sector address the energy trilemma of reliability, affordability, and sustainability.

The company's sustainability framework is built on four pillars: Electrify, Decarbonize, Conserve, and Thrive. These pillars guide the company's efforts to create a more sustainable electric power system.

The company is working to reduce both its direct and indirect greenhouse gas emissions and has set a goal to achieve carbon neutrality for its Scope 1 and Scope 2 emissions by 2030. The company also supports the transition to a more circular economy.

The global shift towards a variety of energy sources, evolving and increased environmental regulations and requirements, and climate change effects, present both challenges and opportunities that may impact the company's business.

Demand for certain of the company's products, solutions, and services, particularly in its Power segment, depend on oil and gas regulatory policy, prices and global and regional supply and demand, and technological innovations and efficiencies, which are subject to factors beyond the company's control and may adversely affect its operating results.

The company's business is exposed to risks associated with the volatile global economic environment and geopolitical conditions. Adverse changes in economic or geopolitical conditions, particularly in locations where our customers, suppliers, or operations are located, as well as concerns about a range of other external factors including global trade and global supply chain, developments in energy prices, inflation, interest rates, changes in government monetary or fiscal policies, import or export restrictions, tariffs, labor market challenges, currency exchange rate volatility, could have a material adverse effect on our business, results of operations, cash flows, and financial condition and may adversely impact the demand for our products, solutions, and services.