GE Vernova Shares Soar 7.26% on Strong Q1 Earnings

GE Vernova (GEV) shares surged 7.26% today, marking the third consecutive day of gains, with a cumulative increase of 15.14% over the past three days. The stock price reached its highest level since February 2025, with an intraday gain of 9.10%.

GE Vernova reported a significant milestone in the first quarter of 2025 with positive free cash flow. The company's revenue grew by 15%, driven by robust equipment and services sales across all segments. Adjusted EBITDA increased by nearly 70% to approximately $460 million, with a margin expansion of 170 basis points. The Power segment, in particular, showed substantial growth with orders increasing by 28% and revenue rising, contributing to the stock price appreciation.

Orders for the quarter totaled $10.2 billion, an 8% year-over-year increase, with a significant backlog of $123 billion. The Electrification segment experienced a 10% sequential backlog growth, driven by strong demand for grid equipment. These figures indicate a robust demand for GE Vernova's products and services, further bolstering investor confidence.

Analysts have maintained a positive outlook on GE Vernova, with Barclays keeping a Buy rating and setting a price target of $427.00. Baird increased its price target to $405 from $387, citing confidence in the company's future performance. The average price target among analysts stands at $399.83, implying significant upside potential.

Despite these positive developments, GE Vernova anticipates cost increases of $300 million to $400 million in 2025 due to tariffs and inflation. Additionally, the Wind segment faced a 43% decrease in orders due to U.S. policy uncertainty and permitting delays. These challenges, however, have not deterred investors, who remain optimistic about the company's long-term prospects.

GE Vernova's strategic initiatives and investments are positioning the company for future growth. The company announced a $600 million investment in U.S. manufacturing, creating 1,500 new jobs. This investment is expected to enhance the company's competitive edge and drive further growth in the coming years.