GEV Stock Forecast & Price Target

GE Vernova has demonstrated robust growth, with its Power segment reporting a revenue increase of 15% year-over-year, reaching $4.84 billion, alongside a notable 50% year-over-year rise in orders on an organic basis. Total orders surged approximately 55% year-over-year organically to $14.6 billion, reflecting strong demand in its Power and Electrification segments, further supported by significant growth in equipment and services. Additionally, the company's expected EBITDA for 2030 has been revised upwards by $1.6 billion to $13.8 billion, driven by a projected increase in service-related revenue and the expansion of heavy-duty turbine volumes and long-term service agreements.

GE Vernova is facing significant financial challenges, particularly within its Wind segment, which is projected to incur EBITDA losses of approximately $400 million, a stark increase from the previously anticipated range of $200 to $400 million. Additionally, while organic revenue within the Wind segment grew by 9% year-over-year, overall revenue declined by 8.4%, indicating potential weaknesses in demand and execution that could hinder long-term performance. Compounding these issues are risks related to delays in project execution, supply chain disruptions, and the expiration of government credits that may negatively impact future growth and margins across its business segments.