Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 29 Jan, 26 | GEV | Buy | USD 711.59 | USD 750.0 | USD 790.0 | 1 day | Closed |
5.40%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
GE Vernova Inc., an energy company, engages in the provision of various products and services that generate, transfer, orchestrate, convert, and store electricity in the United States, Europe, Asia, the Middle East, and Africa. The company operates through three segments: Power, Wind, and Electrification. The Power segment designs, manufactures, and services gas, nuclear, hydro, and steam technologies. It serves industrial, government, and other customers. The Wind segment offers wind generation technologies, including onshore and offshore wind turbines and blades. The Electrification segment provides grid solutions; power conversion; electrification software; and solar and storage solutions technologies required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of generation to point of consumption. The company was incorporated in 2023 and is headquartered in Cambridge, Massachusetts.
Accelerated Order Growth: FY25 orders rose to USD 59.3 billion, up from USD 44.1 billion in FY24, reflecting a 34% organic increase
Margin and Earnings Improvement: Adjusted EBITDA expanded from USD 2.0 billion in FY24 to USD 3.2 billion in FY25, while margins improved from 5.8% to 8.4%
Continued Wind Segment Losses: Wind EBITDA deteriorated slightly from approximately USD (588) million in FY24 to USD (598) million in FY25, reflecting offshore contract losses and volume weakness
Decline in Wind Revenue: Wind segment revenue fell from USD 9.7 billion in FY24 to USD 9.1 billion in FY25, representing a 6% contraction amid project delays and reduced equipment deliveries
GE Vernova’s earnings trajectory remains sensitive to prolonged losses and regulatory disruptions in the Wind segment, which could continue to offset the otherwise strong margin expansion and cash flow growth generated by its Power and Electrification businesses
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 711.59 | 630.0 | 750.0 | 790.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Order Momentum and Backlog Expansion: GE Vernova delivered a substantial acceleration in commercial activity during FY25, with total orders rising to USD 59.3 billion, reflecting 34% organic growth year-over-year. This momentum was led by robust equipment demand across the Power and Electrification segments, complemented by steady services growth in all businesses. As a result, total backlog expanded by USD 31.2 billion to approximately USD 150 billion, reinforcing long-cycle revenue visibility and improving margin quality within the order book.
Sustained Revenue Growth Across Core Segments: The company reported FY25 revenue of USD 38.1 billion, representing a 9% increase over FY24, driven primarily by strong execution in Electrification and Power. Equipment revenue benefited from rising grid infrastructure investments and higher gas turbine deliveries, while services revenues grew across all segments, supporting stability and recurring cash flows. This diversified growth profile helped offset softness within the Wind segment.
Meaningful Margin Expansion and Profitability Improvement: Adjusted EBITDA increased to USD 3.2 billion in FY25 from USD 2.0 billion in FY24, while adjusted EBITDA margin expanded from 5.8% to 8.4%. Margin improvement was supported by favorable pricing, volume leverage, and productivity initiatives across Power and Electrification. These gains more than offset inflationary pressures and higher contract losses within Offshore Wind, highlighting the structural profitability improvement in the core portfolio.
Exceptional Cash Flow Generation and Balance Sheet Strength: Free cash flow more than doubled year-over-year to USD 3.7 billion in FY25, driven by stronger operating earnings and improved working capital management. Cash from operations reached nearly USD 5.0 billion, enabling GE Vernova to end the year with a strong cash balance of approximately USD 8.8 billion. This financial flexibility supported both reinvestment initiatives and shareholder returns.
Power Segment as a Key Growth Engine: The Power business delivered standout performance, with FY25 orders rising over 50% organically to USD 32.8 billion and revenues increasing to USD 19.8 billion. Segment EBITDA margin expanded to 14.7% from 12.5%, reflecting strong demand for gas turbines, improved pricing, and operational efficiencies. The growth in slot reservation agreements and services backlog further strengthened future earnings potential.
Electrification Driving High-Growth Infrastructure Demand: Electrification emerged as a major structural growth driver, with FY25 revenues surging 28% to USD 9.6 billion and segment EBITDA margin expanding sharply to 14.9% from 9.0%. Orders increased 21% organically, supported by strong global grid modernization, data center power needs, and high-voltage equipment demand. Rising equipment backlog enhanced long-term revenue visibility and profitability.
Wind Segment Continued to Weigh on Overall Performance: Despite modest order growth, the Wind segment remained a drag on consolidated results. FY25 revenue declined 6% to USD 9.1 billion, while segment EBITDA losses widened to approximately USD (598) million. Offshore project losses, tariff impacts, and lower Onshore equipment volumes constrained profitability, although management noted operational improvements and pricing discipline within Onshore Wind.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to GE Vernova Inc. (NYSE: GEV) at the closing market price of USD 711.59, as on Jan 28, 2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Specialty Industrial Machinery
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GEV GE Vernova LLC |
60.87 5.80% | 1109.73 | 56.16 | 67.57 | 7.02 | 23.82 | 6.79 | 115.11 |
| ETN Eaton Corporation PLC |
12.13 2.96% | 421.77 | 39.21 | 30.77 | 5.80 | 8.18 | 6.15 | 27.30 |
| SIEGY Siemens AG ADR |
- -% | 158.79 | 17.07 | 15.75 | 1.88 | 2.76 | 2.37 | 11.38 |
| SMAWF Siemens AG Class N |
0.004 0.0012% | 323.53 | 16.98 | 15.53 | 1.83 | 2.72 | 2.35 | 11.32 |
| SBGSY Schneider Electric SA |
- -% | 66.93 | 25.90 | 20.92 | 3.12 | 3.98 | 3.50 | 17.37 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 29, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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