GE Vernova Q4 revenue beats on Power and Electrification strength

Overview

• Energy solutions provider's Q4 revenue rose 4%, beating analyst expectations

• Net income for Q4 was $3.7 bln, including a $2.9 bln tax benefit

• Company increased 2026 revenue guidance to $44-$45 bln, up from $41-$42 bln

Outlook

• GE Vernova raises 2026 revenue guidance to $44-$45 bln from $41-$42 bln

• Company expects 2026 adjusted EBITDA margin of 11%-13%

• GE Vernova projects 2028 revenue of $56 bln, up from $52 bln

Result Drivers

• ORDER GROWTH - Orders increased by 65% organically, driven by growth in all segments, particularly in Power and Electrification

• BACKLOG EXPANSION - Backlog grew by $15.0B sequentially, with significant contributions from equipment and services at Power and Electrification

• EQUIPMENT MARGIN IMPROVEMENT - Equipment margin in backlog expanded by six points year-over-year due to favorable pricing and disciplined underwriting

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for GE Vernova Inc is $769.00, about 11% above its January 27 closing price of $692.70

• The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 54 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.