Core Insights - GE Vernova Inc. reported mixed fourth-quarter earnings, with revenue growth but an earnings miss, leading to a decline in share price [1] Financial Performance - Fourth-quarter revenue reached $10.956 billion, a 4% increase from $10.559 billion, surpassing analyst expectations of $10.213 billion [2] - Fourth-quarter EPS was $2.79, missing the estimate of $3.18, while diluted GAAP EPS rose significantly to $13.39 from $1.73 year-over-year [2] - Net income for the quarter was $3.670 billion, yielding a margin of 33.5%, which included a $2.9 billion tax benefit [2] - Adjusted EBITDA was $1.158 billion, with an adjusted EBITDA margin of 10.6% [2] Orders and Backlog - Total orders for the fourth quarter amounted to $22.2 billion, reflecting a 65% organic growth, with a sequential backlog increase of $15.0 billion [3] Segment Performance - In the Power segment, revenue increased by 6% to $5.749 billion, with an EBITDA margin rising to 16.9% from 14.9%, and orders totaling $11.693 billion [4] - In the Wind segment, revenue declined by 24% to $2.368 billion, with an EBITDA loss of $225 million, compared to a profit of $19 million a year earlier, resulting in an EBITDA margin of (9.5)% [5] - In Electrification, revenue rose by 36% to $2.960 billion, with an EBITDA margin increasing to 17.1% from 13.0%, and orders of $7.424 billion [5] Cash Flow - Cash from operating activities for the quarter was $2.480 billion, and free cash flow was $1.809 billion [5] Full-Year Results - For the full year 2025, revenue increased by 9% to $38.068 billion, with diluted GAAP EPS rising to $17.69 from $5.58 [7] - Net income for the year was $4.879 billion, with a margin of 12.8%, and adjusted EBITDA was $3.196 billion, yielding an adjusted EBITDA margin of 8.4% [7] - Operating cash flow for the year totaled $4.987 billion, and free cash flow was $3.710 billion, with cash and equivalents totaling $8.848 billion as of December 31, 2025 [7]

GE logo over wind farm at sunset, signaling renewables growth. Key Points GE Vernova is already up considerably in 2026 after nearly doubling in value last year. The company's Q4 report confirmed investor optimism, as the company's orders and backlog soared. Despite trading at a high valuation multiple, the company's impressive demand and cash flow projections are hard to ignore. Interested in GE Vernova Inc.? Here are five stocks we like better. Power and electrification company GE Vernova (NYSE: ...

Group 1 - GE Vernova Inc. (NYSE:GEV) is positioned to benefit from the increasing demand for power generation, particularly due to the growth of data centers by big tech companies [1] - The company has a strong visibility on earnings extending to the 2030s, which is a significant advantage in the current market [1] - GE Vernova provides a range of products and services for electricity generation, including gas, nuclear, hydro, and wind technologies [2] Group 2 - While GE Vernova shows potential as an investment, there are AI stocks that may offer greater upside potential and lower downside risk [3]

Core Insights - The article highlights several stocks that are trading near buy points, with a focus on companies benefiting from data center expansion [1] Group 1: Stocks to Watch - GE Vernova (GEV) has successfully broken out past a buy point [1] - Vertiv Holdings (VRT), Dycom Industries (DY), Halozyme Therapeutics (HALO), and Viking Holdings (VIK) are also identified as stocks to watch, trading near buy points [1] - Among these, GE Vernova, Vertiv, and Dycom have reported a 35% growth in earnings per share, indicating strong performance linked to data center expansion [1] Group 2: Market Context - The article notes that the U.S. government is entering a shutdown, which may impact market conditions [1] - Despite market fluctuations, certain stocks like GE Vernova and others are highlighted for their potential as they approach key levels [1]

Group 1 - GE Vernova's expected significant growth is already reflected in its stock price, indicating that any execution, margin, or timing disappointments could result in a compression of its valuation multiple [1] - The stock is considered fairly valued based on projections for 2028, but a discount is suggested [1] Group 2 - The analysis highlights a professional background that spans various industries, providing a diverse perspective on investment opportunities [1] - The investment strategy focuses on cyclical industries, recognizing their potential for substantial returns during economic recovery while balancing risk through fixed-income investments [1]

Upgrades - BMO Capital upgraded Southwest (LUV) to Outperform from Market Perform with a price target of $57.50, up from $43, citing significant momentum and earnings upside to at least $4.00 per share in 2026 from 93 cents in 2025 [2] - Barclays upgraded Quest Diagnostics (DGX) to Overweight from Equal Weight with a price target of $210, up from $195, noting sustainable organic growth of 4% from fiscal 2024 to 2025 [3] - Guggenheim upgraded GE Vernova (GEV) to Buy from Neutral with a price target of $910, believing the market may underestimate cash generation potential and margin improvement in the electrification segment [4] - Wolfe Research upgraded Broadcom (AVGO) to Outperform from Peer Perform with a price target of $400, based on channel checks indicating the company will ship 7 million tensor processing units by 2028 [5] - Citi upgraded Spotify (SPOT) to Buy from Neutral with an unchanged price target of $650, stating the stock's valuation is now attractive and consensus estimates are beatable [5] Downgrades - HSBC downgraded Pinterest (PINS) to Hold from Buy with a price target of $24.90, down from $34.50, due to an abrupt jobs cut announcement indicating a softer near-term outlook [6] - Jefferies downgraded Kenvue (KVUE) to Hold from Buy with a price target of $18, down from $23, following shareholder approval for a merger with Kimberly-Clark [6] - Citizens downgraded SAP (SAP) to Market Perform from Outperform without a price target, citing disappointing Q4 sales results and a current cloud backlog growth of 25% versus the expected 26% [6] - D. Boral Capital downgraded Quince Therapeutics (QNCX) to Hold from Buy without a price target after negative results from a pivotal Phase 3 clinical trial [6] - Stifel downgraded Codere Online (CDRO) to Hold from Buy with a price target of $8.50, down from $9, believing the company's estimates need to reset due to a recently announced tax hike in Mexico [6]

Group 1 - TD Cowen raised the price target on GE Vernova (GEV) to $780 from $680, maintaining a Buy rating on the shares [1] - The firm noted that orders and pricing continue to exceed expectations, contributing to the positive outlook [1] - GE Vernova beat Q4 expectations, indicating strong performance in the market [1]

GE Vernova Stock Falls After Earnings. It Raises Guidance Again. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# GE Vernova Falls After Earnings. Guidance Boost Isn't Enough to Lift the Stock.By [Al Root]ShareResize---ReprintsIn this articl ...

Financial Performance - Total revenues for the year ended December 31, 2025, were $38.1 billion, an increase of $3.1 billion (9%) compared to the previous year[199]. - Net income for 2025 was $4.9 billion, an increase of $3.3 billion, resulting in a net income margin of 12.8%[204]. - Adjusted EBITDA for 2025 was $3.2 billion, an increase of $1.2 billion, with an adjusted EBITDA margin of 8.4%[205]. - Equipment revenues increased to $20.9 billion in 2025, up from $19.0 billion in 2024, while services revenues rose to $17.1 billion from $16.0 billion[197]. - Organic revenues increased by $3.2 billion (9%), with organic equipment revenues up by $2.0 billion (11%) and organic services revenues up by $1.2 billion (7%)[200]. - Operating income for 2025 was $1.4 billion, a $0.9 billion increase, primarily due to improved performance in Electrification and Power segments[202]. - The company reported a significant increase in orders for Heavy-Duty Gas Turbines, with 110 units ordered in 2025 compared to 68 in 2024[209]. - RPO for Gas Power increased by $21.0 billion (29%) from 2024, reflecting strong demand for Heavy-Duty Gas Turbines and Aeroderivative equipment[210]. Sustainability and Environmental Commitment - The company aims to achieve carbon neutrality for its Scope 1 and Scope 2 emissions by 2030, reflecting its commitment to sustainability[25]. - GE Vernova is investing in small modular nuclear reactor (SMR) technology, marking the first commercial contract of its kind in North America[30]. - The company is committed to maintaining high environmental, health, and safety standards, adhering to various international and local regulations[62]. - The company faces risks related to sustainability goals, with potential penalties and reputational harm if expectations are not met[125]. - Changes in energy and environmental regulations could increase compliance costs and impact project economics, potentially reducing demand for the company's offerings[115][116]. Market and Demand Dynamics - GE Vernova's installed base generates approximately 25% of the world's electricity, highlighting its significant role in the electric power industry[12]. - The Electrification segment continues to experience robust demand, particularly for large-scale transmission-related equipment to interconnect renewables and modernize grid infrastructure[41]. - Demand for products in the Power segment is influenced by oil and gas regulatory policies, prices, and global supply and demand, which are largely outside the company's control[117]. - The U.S. market represents approximately 60% of the Onshore Wind segment's equipment RPO, indicating a strategic focus on this region[35]. - The company emphasizes the importance of grid modernization and investment to meet increasing energy demand and enhance energy resilience[198]. Operational Challenges and Risks - Supply chain disruptions and material shortages have affected the company's ability to meet customer obligations, leading to increased costs and reputational risks[80]. - The company relies on third-party suppliers and is exposed to geopolitical dynamics, tariffs, and other factors that may disrupt operations and financial performance[81]. - Regulatory and permitting delays can impede grid connectivity, affecting project timelines and revenue generation[100]. - The company faces significant costs related to compliance with global sanctions and regulations affecting sourcing and supply chains, including sustainability and human rights due diligence[71]. - Major events such as natural disasters and climate change can disrupt operations and increase costs, potentially affecting cash flows and business prospects[122]. Research and Development - GE Vernova plans to invest approximately $5 billion in cumulative R&D from 2025 through 2028, with half focused on industrializing existing products and the other half on long-term innovation[44]. - The company emphasizes the importance of innovation in emerging technologies, particularly in nuclear fuels and advanced energy systems, to remain competitive in global markets[92]. Corporate Governance and Compliance - The company is committed to allocating at least one-third of its cash generation to stockholders through dividends and share repurchases[24]. - The company has implemented a cybersecurity framework informed by industry standards, including NIST and ISO 27001, to manage risks[168]. - The company is subject to evolving laws on cybersecurity, data privacy, and artificial intelligence, impacting operational compliance[79]. - The Financial Services business has registered entities with the SEC and FINRA, subjecting them to various compliance and fiduciary duties[71]. Workforce and Labor Relations - GE Vernova employs around 75,000 employees globally, with approximately 70% specializing in manufacturing, engineering, or services[54]. - The company has approximately 1,400 union-represented production and maintenance employees in the U.S., with a collective bargaining agreement expiring in June 2030[66]. - Labor disputes and collective bargaining agreements could disrupt operations and increase costs[154]. - The company’s ability to attract and retain qualified personnel is critical for executing its strategy and could be impaired by competition for talent[150]. Strategic Transactions and Investments - GE Vernova announced an acquisition of the remaining 50% stake in Prolec GE for approximately $5.3 billion, expected to close in February 2026[188]. - Strategic transactions, including acquisitions and joint ventures, are critical for expanding the company's portfolio, but they carry risks related to integration and compliance[93][94].

Group 1 - GE Vernova has undergone significant changes, transitioning from a major grid-leader acquisition to a new phase in its business strategy [1] - The focus is on identifying undervalued and overlooked companies or industries with strong fundamentals and cash flows, particularly in sectors like Oil & Gas and consumer goods [1] - Energy Transfer is highlighted as a company that was previously avoided by investors but is now seen as a valuable long-term investment opportunity [1] Group 2 - The analysis emphasizes a preference for long-term value investing while also exploring potential deal arbitrage opportunities in various sectors [1] - There is a clear aversion to investing in high-tech businesses or certain consumer goods, with a preference for more traditional products [1] - The article aims to foster a community of investors who are focused on informed decision-making and superior returns through shared insights [1]