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GE Vernova Inc. (GEV)
NYSE:GEV
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GE Vernova Inc.
(NYSE:GEV)
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Rating:66Neutral
Price Target:
$629.00
▲(<0.01% Upside)
GE Vernova Inc. demonstrates strong financial performance and a positive outlook from its earnings call, particularly in the gas power and electrification segments. However, high valuation metrics and cash flow challenges weigh on the overall score. Technical indicators suggest short-term bearish momentum, contributing to a moderate overall stock score.
Positive Factors
Revenue Growth
The significant year-over-year revenue growth and increased orders indicate strong demand for GEV's products, supporting long-term business expansion and market presence.
Balance Sheet Health
A strong equity position and zero debt enhance financial stability, providing GEV with flexibility for future investments and growth initiatives.
Electrification Segment Growth
The robust growth in the Electrification segment highlights GEV's competitive advantage in energy management, positioning it well in the growing renewable sector.
Negative Factors
Cash Flow Challenges
Negative free cash flow suggests operational cash generation issues, potentially limiting GEV's ability to fund new projects and sustain growth without external financing.
Wind Segment Losses
Continued losses in the Wind segment could strain resources and hinder profitability, requiring strategic adjustments to improve performance and competitiveness.
Tariff Impacts
Tariff impacts on margins could reduce profitability, necessitating cost management strategies to mitigate long-term financial pressure.
GE Vernova Inc. (GEV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$175.41B
Dividend Yield0.12%
Average Volume (3M)2.82M
Price to Earnings (P/E)154.2
Beta (1Y)1.52
Revenue Growth8.38%
EPS Growth-2.28%
CountryUS
Employees76,800
SectorGeneral
Sector StrengthN/A
IndustryRenewable Utilities
Share Statistics
EPS (TTM)1.73
Shares Outstanding272,223,940
10 Day Avg. Volume2,897,942
30 Day Avg. Volume2,824,990
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)9.48
Price to Sales (P/S)2.59
P/FCF Ratio53.21
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue3.80
Enterprise Value/Gross Profit21.26
Enterprise Value/Ebitda80.43
Forecast
1Y Price Target
$677.83Price Target Upside7.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
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 generates revenue through multiple streams, primarily by selling and leasing energy generation equipment such as wind turbines, gas turbines, and technology solutions for grid management. The company also earns income from maintenance and service contracts associated with its products, which provide ongoing support and enhancements to energy systems. Additionally, GEV has established partnerships with various utility companies and governments to develop large-scale renewable energy projects, resulting in significant project-based revenue. The growing demand for clean energy solutions and digital transformation in the energy sector further contributes to GEV's financial performance.
GE Vernova Inc. Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong growth in several segments, particularly in gas power and electrification, leading to enhanced revenue and margin expectations. However, challenges such as wind segment losses, tariff impacts, and European order weaknesses were noted. Despite these issues, the positive developments and strategic investments project a strong outlook.Q2-2025 Updates
Positive Updates
Strong Gas Power Orders
9 gigawatts of new gas equipment contracts signed, with backlog growing to 55 gigawatts. Expectation to reach 60 gigawatts by year-end.
Electrification Backlog Growth
Equipment backlog increased by $2 billion in Q2 2025, with significant contributions from Europe, North America, and Asia.
Positive Free Cash Flow
GE Vernova delivered positive free cash flow again in Q2, ending the quarter with almost $8 billion of cash.
Increased EBITDA Margin Expectations
Revised up EBITDA margin expectations for both Power and Electrification segments and increased free cash flow expectations for the year.
Strong Orders and Revenue Growth
Orders increased 4% year-over-year, with revenue up 12% and adjusted EBITDA increasing by over 25%.
Electrification Segment Margin Expansion
Significant EBITDA margin expansion in Electrification to 14.6%, driven by more profitable volume and favorable pricing.
Wind Segment Improvements
Despite losses, Onshore Wind saw double-digit revenue growth and investments to enhance fleet performance.
Negative Updates
Wind Segment Losses
Year-to-date losses of approximately $300 million in the Wind segment, with the expectation to approach breakeven in the second half of 2025.
European HVDC Order Weakness
Weaker European HVDC orders in 2025, with some projects canceled or delayed due to affordability challenges in the EU.
Tariff Impacts
Estimated tariffs impacting EBITDA margin by almost 1 point, with costs expected to be between $300 million and $400 million.
Restructuring Costs
Planned restructuring costs of approximately $250 million to $275 million over the next 12 months to achieve G&A savings.
Company Guidance
During GE Vernova's second quarter 2025 earnings call, the company provided updated guidance and key metrics reflecting strong performance and a positive outlook. The company has raised its full-year free cash flow guidance to a range of $3 billion to $3.5 billion, driven by higher down payments from increased orders and an updated adjusted EBITDA margin guidance of 8% to 9%. GE Vernova's equipment backlog grew to $50 billion, contributing to a total backlog of $129 billion. The Power segment is expected to see organic revenue growth between 6% and 7%, with an improved EBITDA margin of 14% to 15%. The Electrification segment is also showing robust growth, with a revised revenue growth expectation of approximately 20% and an increased EBITDA margin range of 13% to 15%. Meanwhile, the Wind segment, despite some challenges, is projected to improve, with EBITDA losses trending towards the lower end of the $200 million to $400 million range. The company highlighted significant investments in automation and robotics as part of its strategy to enhance operational efficiency and competitiveness, particularly in its Gas Power and Electrification businesses.GE Vernova Inc. Financial Statement Overview
Summary
GE Vernova Inc. shows a positive trajectory in revenue growth and profitability, with a strong balance sheet featuring zero debt and rising equity. However, cash flow challenges persist, requiring strategic focus on enhancing operational cash generation.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 | 36.61B | 34.94B | 33.24B | 29.65B |
| Gross Profit | 6.55B | 6.08B | 4.96B | 3.65B |
| EBITDA | 1.73B | 1.64B | 932.00M | -1.33B |
| Net Income | 1.16B | 1.55B | -438.00M | -2.74B |
Balance Sheet | ||||
| Total Assets | 53.08B | 51.48B | 46.12B | 44.47B |
| Cash, Cash Equivalents and Short-Term Investments | 7.89B | 8.21B | 1.55B | 2.07B |
| Total Debt | 1.06B | 1.06B | 1.18B | 1.17B |
| Total Liabilities | 43.13B | 40.89B | 37.74B | 32.86B |
| Stockholders Equity | 8.88B | 9.55B | 7.42B | 10.65B |
Cash Flow | ||||
| Free Cash Flow | 1.18B | 1.70B | 442.00M | -627.00M |
| Operating Cash Flow | 3.57B | 2.58B | 1.19B | -114.00M |
| Investing Cash Flow | -503.00M | -37.00M | -734.00M | -322.00M |
| Financing Cash Flow | -1.11B | 3.65B | -408.00M | 811.00M |
GE Vernova Inc. Technical Analysis
Neutral
628.97
Price Trends
621.43
Negative
551.06
Positive
446.69
Positive
Market Momentum
3.75
Positive
46.86
Neutral
50.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEV, the sentiment is Neutral. The current price of 628.97 is above the 20-day moving average (MA) of 615.21, above the 50-day MA of 621.43, and above the 200-day MA of 446.69, indicating a neutral trend. The MACD of 3.75 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GEV.
GE Vernova Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 152.04B | 25.73 | 11.65% | 2.97% | 18.80% | -6.73% | |
67 Neutral | 2.80B | 25.45 | 3.39% | ― | 33.19% | 486.74% | |
66 Neutral | $175.41B | 154.19 | 12.88% | 0.12% | 8.38% | -2.28% | |
65 Neutral | 105.95B | 35.39 | 22.38% | 0.47% | 13.41% | 27.49% | |
63 Neutral | 5.73B | 44.32 | 4.11% | 6.13% | -0.27% | -16.25% | |
48 Neutral | 6.18B | -4.62 | -1174.68% | 4.34% | 12.46% | -388.89% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
GEV
GE Vernova Inc.
607.52
358.15
143.62%
NEE
NextEra Energy
74.65
-7.34
-8.95%
CWEN
Clearway Energy
28.35
-0.39
-1.36%
BEPC
Brookfield Renewable
34.00
2.66
8.49%
RNW
ReNew Energy Global
7.66
1.37
21.78%
CEG
Constellation Energy Corporation
326.33
70.87
27.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.