GE Vernova: At the Heart of the Global Power Transformation

As the energy landscape evolves, GE Vernova has positioned itself as a key player at the intersection of traditional gas power, nuclear energy, and grid modernization. Spun off from General Electric, the company now operates as an independent force focused on powering a growing global economy with gas turbines, electrification infrastructure, and advanced technologies like small modular nuclear reactors and grid software solutions.

In 2025, GE Vernova’s operational and financial performance reflects both the promise and complexity of its diverse portfolio.

Inside GE Vernova’s Multi-Front Energy Push

GE Vernova’s diversified energy platform is seeing strong momentum across gas turbines, services, electrification, nuclear, and wind. In the power segment, gas turbine demand continues to grow rapidly, supported by the AI-driven expansion of data centers from hyperscalers like Oracle and Chevron.

The company reported a 29GW gas turbine backlog and 25GW in slot reservations as of Q2 2025, with management targeting 20GW in annual production by 2026 and expecting backlog to exceed 60GW by year-end.

Complementing this, services have become a cornerstone of recurring revenue contributing over double the equipment revenue thanks to long-term maintenance contracts that now represent over 60% of the total backlog.

Meanwhile, the electrification segment is growing with demand for grid-stabilizing technologies such as synchronous condensers, as utilities adapt to higher renewable loads.

This area could scale into a $5B annual opportunity, supported by digital innovations like GridOS and the acquisition of AI startup Alteia.

In nuclear, GE Vernova’s BWRX-300 small modular reactors are under construction in Ontario with U.S. regulatory momentum, while the wind segment faces short-term softness amid policy uncertainty.

However, the recently passed One Big Beautiful Bill Act, phasing out tax credits by 2027, could temporarily boost wind project acceleration, especially as legacy grid infrastructure is upgraded to support higher renewable penetration.

The Financial Engine Behind GEV

GE Vernova has raised its free cash flow guidance to $3–3.5 billion for FY25, driven by operational efficiency, strong backlog execution, and a focus on services. Management is pursuing $600 million in annual G&A cost reductions, and executing a $250–275 million restructuring program.

Tariff policy presents a risk, with an expected $300–400 million impact to EBITDA this year. Management is mitigating this through price adjustments and supply chain optimization.

The company has also repurchased $1.6 billion in shares year-to-date, reflecting its confidence in long-term fundamentals.

Technical Analysis

• Longer-term uptrend still remains firmly intact with both 100d and 200d MA still heading upwards

• Price has recently tested the psychological resistance around 700, where selling pressure has returned

• Short-term trend based on 20d MA has also started to stabilise and move sideways

• As long as price is holding above support level around 570, longer-term uptrend still remains intact

• There is a 1GT Bearish signal currently, looking for more confirmation once price has broken above the resistance with a new 1GT Bullish signal

Final Thoughts

As demand for power capacity accelerates globally, GE Vernova is strategically positioned across multiple fronts, gas, grid, nuclear, and digital. Addressing the world’s evolving energy challenges. While execution and policy risk remain, the company’s diversified approach and long-term contracts provide a solid foundation for continued growth.

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Sources:
1. Why Has GE Vernova Stock Moved 68%? Available at: https://www.forbes.com/sites/greatspeculations/2025/07/21/why-has-ge-vernova-stock-moved-68/
2. GE Vernova: Taking a Closer Look at 2028 Power Segment Earnings Power. Available at: https://www.morningstar.com/stocks/ge-vernova-taking-closer-look-2028-power-segment-earnings-power

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