GE Vernova

Overview

GE Vernova is a purpose-built global energy company formed from the April 2024 spin-off of General Electric's energy businesses, combining the former GE Power, GE Renewable Energy, GE Digital, and GE Energy Financial Services units. It designs, manufactures, and services the technologies that generate, transfer, orchestrate, convert, and store electricity. Its installed base produces approximately 25% of the world's electricity, and it employs about 75,000 people.

The company is led by CEO Scott Strazik and CFO Ken Parks. The name signals the mission: GE for the legacy and engineering, Ver from verde for sustainability, and Nova, Latin for new. GE Vernova trades on the NYSE and is headquartered in Cambridge, Massachusetts, with operations in more than 100 countries.

Business segments

Financial performance

GE Vernova's first full year as a public company, FY2024, produced revenue of $34.9 billion, up 5% reported and 7% organically, with total orders of $44.1 billion. Net income reached $1.6 billion at a 4.5% margin, a $2.0 billion improvement on the prior year. Adjusted EBITDA was $2.0 billion at a 5.8% margin, and free cash flow came in at $1.7 billion. The company ended the year with $8.2 billion in cash, up from $4.2 billion at the spin-off in April 2024.

FY2025 accelerated across the board. Revenue grew 9% to $38.1 billion, orders rose 34% to $59 billion, and free cash flow more than doubled to $3.7 billion, lifting total backlog to $150 billion. GAAP net income reached $4.9 billion, a 12.8% margin, though that figure was flattered by a one-time $2.9 billion tax benefit. The cleaner measure of operating profitability, adjusted EBITDA, was $3.2 billion at an 8.4% margin, up roughly 260 basis points year over year.

Services make up over 55% of backlog, which gives long-term cash flow visibility. The company started a quarterly dividend of $0.25 per share in late 2024, doubled it to $0.50 in December 2025, and raised its share repurchase authorization to $10 billion. In FY2025 it returned approximately $3.6 billion to shareholders.

Strategy & outlook

Strategy centers on what management calls the energy trilemma: balancing reliability, affordability, and sustainability. The company is investing heavily in capacity across Power and Electrification to meet what it describes as a multi-year investment supercycle driven by grid modernization, data center build-outs, and the broader energy transition.

Planned cumulative capital expenditure and R&D investment of $9 billion through 2028 includes a roughly 20% step-up in R&D spending that began in 2025. Investment areas include gas turbine production capacity, HVDC and grid equipment manufacturing, small modular reactor development, and the GE Vernova Advanced Research Center in Niskayuna, New York, which is receiving over $105 million in expansion funding for carbon capture, alternative fuels, AI and robotics, and advanced grid technologies.

After a strong first quarter, GE Vernova raised its 2026 guidance in April 2026 to revenue of $44.5 billion to $45.5 billion, adjusted EBITDA margins of 12% to 14%, and free cash flow of $6.5 billion to $7.5 billion. Longer term, management targets $56 billion of revenue at 20% adjusted EBITDA margins by 2028, raised to include Prolec GE, with at least $24 billion of cumulative free cash flow across 2025 through 2028. Capital allocation priorities are organic growth investment, returning at least a third of cash generation to shareholders, and targeted bolt-on M&A.

Key considerations

Wind remains a drag on overall profitability. Offshore wind met blade manufacturing problems, project delays, and contract losses, and GE Vernova is winding it down, taking no new offshore commitments and completing only contracted projects. Onshore has stabilized, and the timing of a broader order inflection is still uncertain.

The financial trajectory is sensitive to the pace of global grid investment, regulatory conditions around permitting and energy policy, supply chain constraints in critical components, and macroeconomic conditions shaping capital expenditure decisions by utilities and industrial customers.

The valuation reflects expectations for sustained multi-year growth. As of early July 2026 the stock traded near $1,119 for a market capitalization of roughly $299 billion and a trailing price-to-earnings ratio of about 32 times, though that multiple is distorted by one-time tax and acquisition gains in recent earnings, and a forward multiple would be higher. The 52-week range of roughly $506 to $1,182 shows how far the stock has re-rated since the April 2024 spin-off.

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