2 days ago
GE Vernova Wins Puerto Rico Turbine Deal: What Lies Ahead for the Stock?
GE Vernova Inc. GEV recently secured an order from Puerto Rico's RG Engineering to deliver six of its LM2500XPRESS aeroderivative gas turbine packages. Notably, GEV's LM2500XPRESS turbines can be installed quickly, with the ability to achieve up to 39.5% efficiency in simple cycle configuration and up to 54.4% efficiency in combined cycle configuration.
As Puerto Rico continues to face energy challenges following severe damage to its grid from Hurricanes Maria (2017) and Fiona (2022), these turbines, with a total electricity generating capacity of approximately 244 megawatts (MW), will help strengthen this territory's grid stability, meet peak summer demand and provide emergency power.
This order underscores GE Vernova's expanding footprint in the global gas power industry, thereby enhancing its investment appeal for those looking to add a resilient energy stock to their portfolio.
However, before making any hasty decision, let's delve deep into the company's performance of late (in terms of share price movement), future growth prospects as well as risks (if any) to investing in the same. This way, an investor can make an informed decision.
GEV Stock Outperforms Industry, Sector & S&P 500
Shares of GE Vernova have surged an impressive 53.8% in the year-to-date period, outperforming the Zacks Alternative-Energy industry 's growth of 23.5% and the broader Zacks Oils-Energy sector 's rise of 0.3%. It has also outpaced the S&P 500's growth of 4.9% over the same period.
A similar stellar performance has been delivered by other industry players, such as Talen Energy Corp. TLN and Constellation Energy Corp. CEG, whose shares have surged 39% and 37.6%, respectively, year to date.
What Pushed GEV Stock Up?
As industries worldwide shift to sustainable energy, GE Vernova supports this transition with advanced technologies that reduce emissions. Its recent clean energy initiatives and growing presence in the low-carbon power sector have likely strengthened investor confidence, as reflected in the year-to-date share price gain.
Impressively, in June 2025, GEV secured an order from Rio Tinto, one of Canada's largest private producers of hydroelectricity, for the upgrade of eight turbine-alternator units at the Isle Maligne hydropower plant of Canada. In the same month, GE Vernova Hitachi Nuclear Energy, an alliance between GEV and Hitachi, signed an agreement with the Nordic energy company, Fortum, to enhance potential deployment of the BWRX-300 small modular reactor (SMR) in Finland and Sweden.
The company also signed an agreement to supply, service, and commission 12 of its 6.1 MW-158m onshore wind workhorse turbines for Çal??k Renewables's Zatriq I & II Wind Farms, last month. In May, GEV revealed that it will deliver two gas-insulated substations (GIS) in Norway, utilizing its g³ technology to reduce greenhouse gas emissions. In the same month, GEV's LM Wind Power signed a deal with Vestas Wind Systems for a wind turbine blade factory in Poland.
Earlier in April, the company signed a significant partnership with Duke Energy for natural gas turbines and other associated equipment to meet America's growing energy demand. GEV entered this year with a $20 million investment plan, supported by Singapore's EDB, to develop next-generation repair technologies for its HA gas turbines at its Global Repair Service Center.
What Lies Ahead for GEV Stock?
With global electricity consumption expected to rise 3.9% in 2025 and around 4% annually through 2027 (IEA), demand for clean, efficient, and scalable energy solutions is set to soar. GE Vernova's consistent stream of project wins, strategic partnerships, and technology collaborations across hydropower, nuclear, wind, and gas positions it to benefit from this trend.
The company's recent initiatives, spanning North America, Europe, and Asia (as mentioned above), underscore its readiness to meet rising energy needs through innovative solutions. This strong alignment between GE Vernova's expanding global operations and projected electricity demand growth supports its long-term revenue and earnings growth potential.
In line with this, the Zacks Consensus Estimate for GEV's long-term (three-to-five years) earnings growth rate is pegged at a solid 18%.
In fact, the growing demand for electricity from renewable sources worldwide has also been bolstering the long-term growth prospects of other clean energy stocks, such as TLN and CEG. Notably, the long-term earnings growth rate for TLN is 5.2%, while that for CEG is 13.5%.
However, a prospective investor should be aware of the challenges that GE Vernova is currently facing, particularly in the offshore wind industry. Notably, the offshore wind industry has been struggling with rising material costs and persistent supply-chain issues for some time now, resulting in multiple project cancellations.
As a wind turbine manufacturer, GEV has thus been witnessing increased product and project costs, along with delays in execution timelines. This, in turn, is impacting its offshore wind business' performance, as evident from the 53.7% year-over-year decline in its first-quarter offshore wind revenues (owing to a slower pace of production). Looking ahead, the company's offshore wind business is expected to continue delivering poor performance in the near future, further corroborated by the order decline in this business segment, which may lead to notable financial losses.
Now, let's take a quick look at GEV's near-term estimates to see what growth story they depict.
Estimates for GEV
The Zacks Consensus Estimate for 2025 and 2026 sales implies an improvement of 6.5% and 10%, respectively, year over year. A similar improvement can be witnessed in the company's 2025 and 2026 earnings estimates.
Moreover, near-term earnings estimate has shown solid improvement over the past 60 days, except for 2025. The upward revision in earnings estimates indicates analysts' increasing confidence in the stock's earnings-generating capabilities, while the downward revision reflects declining confidence in the same.
Image Source: Zacks Investment Research
GEV Stock Trading at a Premium
In terms of valuation, GEV's forward 12-month price-to-earnings (P/E) is 53.71X, a premium to its peer group's average of 15.22X. This suggests that investors will be paying a higher price than the company's expected earnings growth compared to its peers.
Its industry peers are also trading at a premium. While TLN is trading at a forward 12-month earnings of 27.67X, CEG is trading at 29.34X.
Final Thoughts
To conclude, investors considering GE Vernova may want to wait for a more attractive entry point, considering its currently stretched valuation.
However, existing shareholders of this Zacks Rank #3 (Hold) company may continue to retain it, as its robust year-to-date price performance, steady order wins across key clean energy segments, and solid earnings growth potential, supported by upbeat sales estimates and long-term demand projections, signal encouraging prospects.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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