GE Vernova (GEV) stock surged on Wednesday after the energy company released its Q1 2025 earnings report. GEV surprised analysts with its diluted earnings per share of 91 cents, which was well above their estimate of 45 cents. It also marked a strong profit for the company following its diluted EPS of -47 cents in Q1 2024.
GE Vernova’s revenue of $8.03 billion was another surprise for Wall Street, beating its estimate of $7.55 billion. It’s also an 11% increase year-over-year compared to $7.26 billion. This was fueled by 28% increase in Power orders to $6.2 billion, offsetting a 43% drop in Wind and 3% decrease in Electrification orders.
GE Vernova’s strong performance in Q1 2025 boosted its shares 9.06% today. That follows a 4.15% increase yesterday, and largely erases its 0.79% drop year-to-date.
GE Vernova 2025 Outlook
GE Vernova reaffirmed its 2025 guidance in its latest earnings report. The energy company expects revenue for the year to range from $36 billion to $37 billion, compared to analysts’ estimate of $36.76 billion. GE Vernova also expects high-single digits adjusted EBITDA margin and free cash flow of $2 billion to $2.5 billion.
GE Vernova also provided segment guidance in its Q1 report. The company’s forecast for Power is mid-single digit organic revenue growth with 13% to 14% segment EBITDA margin. It expects Wind revenue to drop in the mid-single digits while EBITDA losses range from $200 million to $400 million. Finally, Electrification revenue growth is predicted to be in the mid-to-high-teens with an EBITDA margin of 11% to 13%.
Is GEV Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for GE Vernova is Strong Buy based on 16 Buy and one Hold ratings over the last three months. With that comes an average price target of $424.38, representing a potential 30.15% upside for GEV stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
