GE Vernova maintained 2025 outlook early Wednesday after missing revenue estimates for the fourth quarter of 2024 due to weakness in offshore wind energy. GEV stock rose to a new high, continuing a huge rally for the S&P 500 member since its April 2024 debut.
Vernova holds the gas power and renewable energy assets of the former General Electric.
GE Vernova Earnings
GE Vernova reported earnings of $1.73 a share. It's unclear if that's comparable to FactSet estimates for a 244% spike to $2.30 a share.
Revenue rose 5.1% to $10.56 billion, but that slightly missed estimates for $10.702 billion.
Wind orders plunged 41% to $2.031 billion. But power orders swelled 20% to $6.55 billion and electrification orders jumped 118% to $4.79 billion.
For Q4, GE Vernova highlighted improvement in the wind energy business, which turned "modestly profitable" despite tumbling orders. Onshore wind delivered "its most profitable quarter in three years" on 48% revenue growth and offshore wind reduced losses despite 58% lower revenue, an earnings release and presentation showed. For the year, the wind energy unit slashed losses nearly in half to $588 million. The company tied the 41% dive in Q4 2024 orders to "a large U.S. onshore wind order in the fourth quarter of 2023."
Vernova on Wednesday reaffirmed 2025 guidance of $36 billion-$37 billion in revenue and $2 billion-$2.5 billion in free cash flow. It also touted "significant margin expansion and cash generation."
For 2025, analysts anticipate Vernova earnings of $6.87, a 57% increase from 2024, FactSet shows.
GE Vernova Stock
In Wednesday's stock market trading, GEV stock rose 3% to 428.59, reaching the best level since its debut last year.
In intraday actionGEV stock hit the profit-taking sell zone from its Jan. 6 breakout past a 357.09 buy point, according to MarketSurge charts. The energy stock reached that area relatively quickly, meaning investors could use the eight-week hold rule for stocks breaking out of proper bases and showing the potential for further gains.
Vernova stock has more than tripled from its April 2024 debut price of $115.
The relative strength line rose to a new high on Wednesday with Vernova shares, a favorable sign. The RS line, the blue line in the chart shown, measures a stock's performance vs. the S&P 500.
GE Aerospace reports earnings early Thursday. GE Health Care is due Feb. 13. The three companies were carved out of General Electric, bringing GE's big breakup to a close.
GE Aerospace stock dipped near a buy point on Wednesday. GE stock flashed an early buy point on Jan. 14. GE Health Care stock rose near a buy point.
Energy Outlook: 'Investment Supercycle'
The company reiterated on Wednesday that it sees 2025 results led by mid-to-high-teens growth in its electrification segment. It sees mid-single-digit growth in the gas power segment, offset by a mid-single-digit decline for wind energy.
By 2028, GE Vernova has previously said it expects to generate $45 billion in revenue and $14 billion in free cash flow. GE Vernova CEO Scott Strazik cited "the investment supercycle for the energy transition," which he said is gaining momentum.
Further, the Vernova board approved an initial $6 billion share repurchase authorization.
Year to date, Vernova stock is now up 29% after its triple-digit rally since last April.
Trump Factor
During his inauguration Monday, President Donald Trump signed an executive order to temporarily withdraw offshore wind leasing in areas of the continental shelf. That "is consistent with campaign promises and does not come as a surprise," RBC analysts said on Tuesday.
The Trump administration also said it would halt the issuance and renewal of onshore and offshore wind permits pending a review of the federal wind leasing and permitting practices.
Analysts at RBC Capital Markets said they do not expect the announcement to materially impact GE Vernova stock. They cited Vernova's "limited exposure to offshore wind in the U.S. and limited onshore wind development on federal land."
