GEV has performed remarkably well since the beginning of the year, gaining 67.1%, although current valuation metrics suggest that the stock could be trading above its fair value
GE Vernova as one of the top three players in gas, onshore wind and transmission and distribution assets and services. These are sectors that are expected to deliver above-average sales growth until the end of the decade.
Although losses in the offshore business and challenging price-cost dynamics in the onshore and grid divisions have weighed on margins, the company has a path to a significant margin improvement. Strong pricing, volume increases, selective project selection and cost reduction initiatives could drive EBITDA margins into the high tens to low twenties by the end of the decade.
GE Vernova's solid net cash position, which is expected to build further as free cash flow generation expands. This could support future dividend growth and "significant share buyback programs"
In other recent news, GE Vernova reported strong results for the second quarter of 2025, with both revenue and earnings per share (EPS) beating expectations. The company reported EPS of $1.86, which was above the forecast of $1.50 and a positive surprise of 24%. Sales reached $12.4 billion, significantly higher than the expected $8.8 billion. This development is a positive reflection of the company's strategic direction and financial health.
