Amit Singh
4 min read
In This Article:
GE Vernova (GEV) has been on a remarkable run, with its stock soaring by 206% over the past year. This surge comes as the company capitalizes on increased electricity demand led by the build-out of data centers to support artificial intelligence (AI), industrial growth, the global transition to clean energy, the electrification of transportation, and a widespread push for grid modernization. These factors have bolstered demand for GE Vernova’s energy equipment and services, significantly boosting its backlog and overall growth trajectory.
The solid demand is translating into strong business wins. In the first quarter of 2025, GE Vernova secured $10.2 billion in orders, representing an 8% year-over-year increase. That’s about 1.3 times the company’s revenue for the quarter. The company is also translating those orders into profits and cash flow. Its adjusted EBITDA margins are expanding, and free cash flow improved by $1.6 billion year-over-year in Q1 thanks to better working capital management and strong down payments.
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Momentum is building across both the equipment and services segments. In Q1, the company grew its equipment backlog by $2.4 billion and services backlog by $2 billion. Notably, a key growth driver is GE Vernova’s services business, which now makes up more than 60% of its overall $123 billion backlog. These high-margin service contracts, which include upgrades and long-term maintenance agreements, offer strong revenue visibility and reliable cash flow. The increased utilization of GE Vernova’s installed base is also creating more service opportunities, supporting its long-term growth.
Demand for its Gas Power business remains strong. GE Vernova currently has 50 gigawatts of gas turbines under contract or reserved and expects to ship more than 10 gigawatts of equipment this year. Management aims to secure contracts for more than double that amount by year-end, potentially ending 2025 with over 60 gigawatts of gas power commitments. The second half of the year is expected to be even stronger, with a higher mix of combined-cycle orders, which typically carry a greater dollar value.
