TLDR
- GE Vernova (GEV) stock rose 2.8% Monday to $801.25 after securing a sales reservation agreement with Maxim Power for a 7HA.02 gas turbine with a nonrefundable deposit due in 2026.
- The company crushed Q4 expectations with earnings per share of $13.39 versus $2.99 expected and revenue of $10.96 billion versus $10.21 billion expected.
- Gas power generation backlog hit 83 gigawatts by end of 2025, with CEO projecting 100 gigawatts by year-end and 2029-2030 capacity nearly sold out.
- GE Vernova doubled its quarterly dividend to $0.50 per share from $0.25, representing an annualized $2.00 payout.
- Shares have surged 102% over the past year driven by electricity demand from AI data centers, with Wall Street projecting 2030 EBITDA of nearly $17 billion versus $9 billion a year ago.
GE Vernova stock climbed 2.8% Monday, reaching $801.25 after Canadian electricity producer Maxim Power announced a sales reservation agreement for a 7HA.02 gas turbine.
The deal requires Maxim to provide a nonrefundable deposit payable in 2026. Pricing for the turbine will be negotiated later.
While reservations and deposits are standard business practice for GE Vernova, the company is rapidly selling out manufacturing capacity through the end of the decade. CEO Scott Strazik said on January 28 that slots for 2029 remain available but won’t be for long.
The company ended 2025 with 83 gigawatts of gas power generation in its backlog. GE Vernova projects reaching 100 gigawatts by year-end, which would leave both 2029 and 2030 largely sold out.
GE Vernova is raising annual production capacity to 20 gigawatts this year. Earlier this month, the company signed a strategic alliance agreement with Xcel that included five F-class power generation turbines, which weren’t included in the January 28 backlog figure.
Q4 Earnings Crush Expectations
The stock momentum builds on a monster Q4 earnings report released January 28. GE Vernova posted earnings per share of $13.39, crushing the consensus estimate of $2.99 by $10.40.
Revenue came in at $10.96 billion versus the $10.21 billion estimate. The company delivered a 12.8% net margin and a 46.9% return on equity.
Quarterly revenue increased 3.8% year-over-year. During the same period last year, the company posted $1.73 earnings per share.
Dividend Doubled, Strong Analyst Support
GE Vernova doubled its quarterly dividend to $0.50 per share from $0.25. The new dividend represents an annualized payout of $2.00 and a yield of about 0.2%.
The dividend payout ratio sits at 11.2%. Shareholders of record on January 5 received the payment on February 2.
Twenty-two analysts have given the stock a Buy rating, with one Strong Buy, three Hold ratings, and one Sell rating. The consensus rating is “Moderate Buy” with an average price target of $788.24.
The company trades with a market cap of $216 billion. The price-to-earnings ratio sits at 43.78.
Shares traded as high as $814.86 during Monday’s session. The stock had previously closed at $779.35.
Approximately 3.07 million shares changed hands during mid-day trading, a 9% decline from the average daily volume of 3.39 million shares. The fifty-day moving average price is $670.00, and the two-hundred day moving average is $629.55.
The stock has surged more than fivefold since early 2024 when GE Vernova split from GE Aerospace. Over the past year, shares have jumped 102%.
Accelerating electricity demand from power-hungry AI data centers has fueled the boom. Wall Street analysts project 2030 EBITDA of almost $17 billion, up from estimates of $9 billion a year ago.
BMO Capital Markets maintained an Outperform rating with a $785 target price on January 29. UBS Group reaffirmed its Buy rating the same day.
China Renaissance upgraded the stock to Strong Buy on January 29. JPMorgan Chase maintained its Overweight rating in December.
GE Vernova shares hit a new 52-week high earlier Monday. The S&P 500 gained 0.5%, and the Dow Jones Industrial Average finished flat.
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