Yahoo Finance·2025-12-31 13:25Company Overview - GE Vernova, a leading company in the electric power industry, operates independently after its spin-off from General Electric in 2024, focusing on energy technology and services that support the electric system [4] - The company has a vast fleet of equipment worldwide, including gas, steam, and wind turbines, generating over 25% of the world's electricity, which provides steady sales and revenue from maintenance and modernization [3] Market Demand - As of late 2025, GE Vernova's backlog is $135 billion, with expectations to grow to $200 billion by 2028, indicating strong future demand [1] - The U.S. electricity demand is projected to increase by approximately 2.5% annually over the next decade, significantly higher than the 0.5% growth rate of the previous decade [6] - The demand for efficient gas turbines is surging due to the rapid buildout of data centers, as these turbines can be installed in months, making them ideal for quick energy deployment [2] Growth Potential - The pipeline of signed orders and slot reservations in GE Vernova's gas turbine segment is approaching 70 GW, reflecting robust demand for future services [1] - Energy security has become a top priority in the U.S., and companies with extensive energy infrastructure, like GE Vernova, are well-positioned to capitalize on the growing demand for energy [7] Strategic Positioning - GE Vernova is positioned to benefit from the structural long-term demand for energy, particularly as the electrification of the grid continues and more data centers come online [5][8] - The company’s focus on natural gas aligns with the broader market trend of replacing coal with cleaner energy sources, which is expected to drive growth in the natural gas sector [11][14]