GE Vernova Sees Stronger Outlook, Price Target Boosted by Jefferies

GE Vernova Inc. (GEV) raised its FY2028 EBITDA estimate by 5% after Jefferies updated its financial model. The company beat Q2 2025 expectations with EPS of $1.86 and revenue of $9.11 billion, up 11% YoY and 12% organically. GEV raised its full-year guidance and boosted its EBITDA margin forecast to 8-9% and increased free cash flow guidance to $3.0-$3.5 billion.

GE Vernova Inc. (GEV) has raised its estimated EBITDA for fiscal year 2028 by 5% after Jefferies updated its financial model. The company reported strong second-quarter (Q2) 2025 results, with earnings per share (EPS) of $1.86 and revenue of $9.11 billion, up 11% year-over-year (YoY) and 12% organically [1]. GEV also increased its full-year guidance, boosting its EBITDA margin forecast to 8-9% and its free cash flow (FCF) guidance to $3.0-$3.5 billion.

The company's strong performance is driven by robust demand for energy infrastructure, which has significantly contributed to its large backlog. GE Vernova's Q2 2025 results indicate a 4% YoY growth in orders, rising from $21.5 billion to $22.5 billion, and an increase in its backlog by 13% to nearly $130 billion [2].

However, despite its strong financial performance, GE Vernova's shares are considered overpriced due to its high valuation. The company's power division remains its largest source of revenue and backlog, contributing significantly to its financial performance. The wind division, however, continues to operate at a loss, with revenue expected to decline by mid-teens and EBITDA margin at high negative single digits. The electrification division, while showing promise with a doubled EBITDA margin, still has a relatively weak backlog and expects continued revenue growth [2].

GE Vernova's 2025 guidance has been increased based on its strong financials, with the company guiding for $36.5 billion in revenue and $3.25 billion in FCF. However, the company continues to trade at a high valuation, with its power division's adjusted EBITDA potentially reaching $3.8 billion if it can match orders to fulfillment. The wind division's EBITDA losses and the electrification division's weak backlog pose challenges to the company's overall financial performance [2].

In conclusion, while GE Vernova's strong Q2 results indicate robust demand for its energy infrastructure products, the company's shares are considered overpriced due to its high valuation. Investors should closely monitor the company's performance and guidance, particularly in the wind and electrification divisions, to assess its long-term potential.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-ge-vernova-inc-nysegev-shares-purchased-by-resona-asset-management-co-ltd-2025-08-13/
[2] https://seekingalpha.com/article/4813723-ge-vernova-an-important-overpriced-company