GE Vernova Hits All-time High After Q4 Profit More Than Doubles, Retail’s Still Mixed
Synopsis
The company’s fourth-quarter electrification orders more than doubled to $4.78 billion, banking on higher demand for grid equipment and services.
GE Vernova’s (GEV) shares rose 1.9% on Wednesday and hit a fresh all-time high after the power equipment maker’s fourth-quarter profit more than doubled.
The company reported a net income of $484 million, or $1.73 per share for the quarter ended Dec. 31, compared to $197 million, or $0.72 per share, last year.
“In the fourth quarter, we achieved record orders and revenue and expanded margins in each segment,” said GE Vernova Chief Financial Officer Ken Parks in a statement.
Its total revenue for the quarter rose 5% to $10.56 billion but missed average analysts’ estimate of $10.70 billion.
GE Vernova, which emerged following a three-way split of General Electric, said its fourth-quarter orders rose 20.2% to $6.55 billion, banking on firm orders for gas power equipment.
Its fourth-quarter electrification orders more than doubled to $4.78 billion, banking on higher demand for grid equipment and services.
The company reported fourth-quarter adjusted core earnings of $1.08 billion, compared with the Wall Street estimate of $1.09 billion.
Its free cash flow during the fourth quarter fell to $572 million from $1.65 billion.
GE Vernova’s fourth-quarter orders in the wind segment fell 41% to $2.03 billion.
The company forecasted a low single-digit percentage point increase in first-quarter revenue at its power segment.
GE Vernova also projected wind segment revenue to grow by mid-single digit percentage points during the first quarter.
Retail sentiment on Stocktwits remained in the ‘bearish’ (44/100)’ territory, albeit with a slightly higher score. Retail chatter soared to ‘extremely high.’
User comments were mixed; some saw further upside and some remained skeptical.
According to the U.S. Energy Information Administration (EIA), U.S. power demand is expected to hit a record high, driven by artificial intelligence data centers, which will benefit companies such as GE Vernova.
However, U.S. President Donald Trump passed an executive order banning new federal offshore wind leasing.
Over the past year, GEV has more than tripled in value.
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