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GE Vernova Inc. (GEV)
NYSE:GEV
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GE Vernova Inc.
(NYSE:GEV)
Rating:75Outperform
Price Target:
$549.00
▲(13.20%Upside)
Positive Factors
AI Investment
The scale investment in AI-related infrastructure continues to increase and is increasingly global, evidenced by a recent MOU of up to $14.2 billion.
Demand and Pricing
Strong demand suggests GEV will sell all available capacity each year through 2028+, potentially increasing Power EBITDA margins beyond the estimate of 16.9%.
Energy Transition
GEV offers investors exposure to the energy transition sector with a unique blend of scale and global reach across conventional and renewable generation.
Negative Factors
Market Valuation
The stock's current valuation is seen as a compelling entry point, trading at a premium justified by the company’s potential for significantly higher than average earnings growth over the next several years.
Policy Uncertainty
There is a slight lowering of estimates for Onshore Wind due to recent softness in order activity and potential headwinds from an uncertain policy environment.
Wind Market Challenges
Softness in wind continues and represents an immaterial piece of the valuation, with cautiousness on an inflection in onshore wind order activity.
GE Vernova Inc. (GEV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$132.19B
Dividend Yield0.1%
Average Volume (3M)3.00M
Price to Earnings (P/E)69.1
Beta (1Y)1.59
Revenue Growth5.99%
EPS GrowthN/A
CountryUS
Employees76,800
SectorGeneral
Sector StrengthN/A
IndustryRenewable Utilities
Share Statistics
EPS (TTM)1.07
Shares Outstanding272,934,750
10 Day Avg. Volume2,985,751
30 Day Avg. Volume3,001,400
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)12.76
Price to Sales (P/S)0.00
P/FCF Ratio32.64
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit15.66
Enterprise Value/Ebitda14.29
Forecast
1Y Price Target
$438.17Price Target Upside-9.66% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering16
GE Vernova Inc. Business Overview & Revenue Model
Company DescriptionGE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.
How the Company Makes MoneyGE Vernova Inc. generates revenue through the sale of its energy products and services across multiple sectors, including renewable energy, power generation, and energy management. Key revenue streams include the manufacture and sale of wind turbines, gas turbines, and other power generation equipment. Additionally, the company offers services such as installation, maintenance, and digital solutions that optimize energy operations. Strategic partnerships with governments, utility companies, and industrial clients further enhance its market presence and contribute to its earnings. By leveraging its technological expertise and industry experience, GE Vernova aims to capitalize on the global transition towards cleaner and more sustainable energy sources.
GE Vernova Inc. Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 48.74%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call indicates a strong start to 2025 with significant growth in orders, revenue, and free cash flow. The company is effectively expanding margins and maintaining robust demand in power and electrification segments. However, challenges arise from tariffs, inflation, and a sluggish wind market, particularly in offshore wind, which could impact future financials if not mitigated. Despite these challenges, the overall outlook remains positive with a focus on strategic actions to address cost pressures.Q1-2025 Updates
Positive Updates
Strong Equipment and Services Backlog Growth
Sequential equipment backlog grew by $2.4 billion and services backlog by $2 billion, totaling a $123 billion backlog, indicating strong long-term growth potential.
Significant Free Cash Flow Improvement
Generated $1 billion in free cash flow, an improvement of $1.6 billion year over year due to strong down payments and working capital management.
Robust Orders and Revenue Growth
Booked $10.2 billion of orders, an 8% increase year over year, with revenue increasing by 15% supported by higher equipment and services revenues across all segments.
Margin Expansion Across Segments
Adjusted EBITDA increased nearly 70% to $1.7 billion, with margin expanding 170 basis points. Notably, electrification segment expanded margin by 680 basis points.
Positive Outlook for Power Segment
Power segment orders grew 28%, led by equipment and services strength, with a significant EBITDA margin expansion of 70 basis points to 11.5%.
Electrification Segment Demand and Growth
Orders remained strong at approximately $3.4 billion, driven by grid equipment demand, contributing to an 18% revenue increase.
Shareholder Returns and Strong Balance Sheet
Returned $1.5 billion of capital to shareholders, repurchasing approximately 5 million shares, ending with a healthy cash balance of $8.1 billion.
Negative Updates
Tariffs and Resulting Inflation Impact
Projected cost increases due to tariffs and inflation, expecting costs to rise by $300 to $400 million in 2025, presenting challenges that require mitigation.
Onshore Wind Market Challenges
Wind orders decreased by 43% due to US policy uncertainty and permitting delays, with ongoing challenges in the wind market.
Offshore Wind Losses
Sequential improvement in offshore wind losses, but still impacted by a $70 million one-time termination charge and ongoing challenges in executing backlog.
Company Guidance
In the first quarter of 2025, GE Vernova reaffirmed its financial guidance amid a dynamic market environment, projecting revenue between $36 billion and $37 billion and adjusted EBITDA margin expansion to high single digits for the year. The company anticipates free cash flow of $2 billion to $2.5 billion, despite expecting $300 to $400 million in cost pressures from tariffs and inflation. Mitigation strategies include pricing actions and accelerating G&A cost structure transformation. Notably, the equipment backlog grew by $2.4 billion, and the services backlog increased by $2 billion, leading to a total backlog of $123 billion. The company expects to maintain a robust order pipeline with over 60 gigawatts between backlog and reservation agreements by the end of 2025.GE Vernova Inc. Financial Statement Overview
Summary
GE Vernova Inc. demonstrates resilience with improving revenue and profitability metrics, reflecting a positive turnaround. The balance sheet is strong, with zero debt and rising equity, providing a stable foundation for growth. However, cash flow challenges remain, requiring strategic focus on enhancing cash generation from operations to ensure long-term financial health and support expansion in the renewable energy sector.Income Statement
GE Vernova Inc. shows a positive trajectory in revenue growth with a 5.10% increase from 2023 to 2024. The company improved its net income from a loss in 2023 to a profit in 2024, indicating a turnaround. Gross profit margin improved from 14.94% in 2023 to 17.41% in 2024, reflecting better cost management. However, the EBIT margin remains low at 1.35% in 2024, suggesting room for improvement in operational efficiency.75
Positive
Balance Sheet
GE Vernova Inc. has a strong equity position with an increasing stockholders' equity from 2023 to 2024. The equity ratio improved to 18.54% in 2024, indicating a solid capital structure. With no total debt in 2024, the company has eliminated its debt burden, enhancing financial stability. Return on Equity (ROE) improved significantly to 16.26% in 2024 from negative figures, showcasing strong profitability for shareholders.80
Positive
Cash Flow
The cash flow statement reveals challenges, as free cash flow turned negative in 2024. Free cash flow growth rate is negative, indicating cash constraints despite the improvement in net income. The operating cash flow to net income ratio was zero in 2024, suggesting reliance on non-operational sources for cash. The company needs to enhance its operational cash generation to support sustainable growth.65
Positive
| Breakdown | |||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 35.72B | 34.94B | 33.24B | 29.65B | Gross Profit |
| 6.44B | 6.08B | 4.96B | 3.65B | EBIT |
| 931.00M | 471.00M | -923.00M | -1.74B | EBITDA |
| 1.93B | 1.64B | 932.00M | -1.33B | Net Income Common Stockholders |
| 1.94B | 1.55B | -438.00M | -2.74B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 8.11B | 8.21B | 1.55B | 2.07B | Total Assets |
| 51.56B | 51.48B | 46.12B | 44.47B | Total Debt |
| 0.00 | 1.04B | 1.18B | 1.17B | Net Debt |
| -8.11B | -7.16B | -367.00M | -899.00M | Total Liabilities |
| 41.89B | 40.89B | 37.74B | 32.86B | Stockholders Equity |
| 8.61B | 9.55B | 7.42B | 10.65B |
| Cash Flow | Free Cash Flow | ||
| 3.34B | 1.70B | 442.00M | -627.00M | Operating Cash Flow |
| 4.19B | 2.58B | 1.19B | -114.00M | Investing Cash Flow |
| 155.00M | -37.00M | -734.00M | -322.00M | Financing Cash Flow |
| 461.00M | 3.65B | -408.00M | 811.00M |
GE Vernova Inc. Technical Analysis
Positive
485.00
Price Trends
386.10
Positive
367.70
Positive
327.52
Positive
Market Momentum
28.68
Positive
72.14
Negative
65.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEV, the sentiment is Positive. The current price of 485 is above the 20-day moving average (MA) of 457.31, above the 50-day MA of 386.10, and above the 200-day MA of 327.52, indicating a bullish trend. The MACD of 28.68 indicates Positive momentum. The RSI at 72.14 is Negative, neither overbought nor oversold. The STOCH value of 65.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEV.
GE Vernova Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $132.19B | 69.12 | 22.02% | 0.10% | 5.99% | ― | |
75 Outperform | $90.85B | 30.56 | 24.71% | 0.49% | 11.36% | 26.54% | |
72 Outperform | $6.10B | 38.12 | 4.70% | 5.51% | -1.34% | 21.62% | |
65 Neutral | $2.50B | 99.71 | 2.00% | ― | -1.77% | -41.65% | |
58 Neutral | $4.97B | 19.83 | -16.90% | 5.27% | 13.61% | -24.47% | |
56 Neutral | $5.31B | 32.67 | -4.65% | 4.92% | 1.01% | -110.78% | |
42 Neutral | $9.77B | ― | -32.34% | ― | 62.41% | -85.81% |
* General Sector Average
Performance Comparison
GEV
GE Vernova Inc.
485.00
318.61
191.48%
CWEN
Clearway Energy
30.51
4.74
18.39%
BEPC
Brookfield Renewable
29.61
-0.44
-1.46%
SMR
NuScale Power
34.36
25.68
295.85%
RNW
ReNew Energy Global
6.90
0.40
6.15%
CEG
Constellation Energy Corporation
298.80
85.60
40.15%
GE Vernova Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
GE Vernova Inc. Holds Annual Stockholders Meeting
Neutral
May 16, 2025
GE Vernova Inc. held its annual meeting of stockholders on May 14, 2025, where key decisions were made regarding the company’s governance and executive compensation. During the meeting, stockholders elected three Class I directors to serve until 2028, approved executive compensation, decided on annual advisory votes for executive compensation, and ratified Deloitte & Touche LLP as the independent auditor for the fiscal year ending December 31, 2025. These decisions reflect the company’s commitment to maintaining consistent governance practices and ensuring transparent financial oversight.
The most recent analyst rating on (GEV) stock is a Buy with a $500.00 price target. To see the full list of analyst forecasts on GE Vernova Inc. stock, see the GEV Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.