GE Vernova shares advanced 5.6% on Friday, closing at $779.35, as the company announced significant developments in its renewable energy and grid businesses. The stock traded between $737.41 and $782.90 with approximately 3.3 million shares changing hands during the session.
Wind Business Expansion
The energy technology firm secured 1.1 gigawatts of U.S. onshore wind repower orders for 2025, involving upgrades to existing turbines with newer technology to enhance performance and extend operational life. These projects are expected to reach commercial operation between 2026 and 2027.
Strategic Transactions Completed
GE Vernova finalized its $5.275 billion acquisition of the remaining stake in transformer manufacturer Prolec GE this week, strengthening its grid technology portfolio. Additionally, the company completed a $2.6 billion senior notes offering with maturities in 2031, 2036, and 2056, with proceeds earmarked for general corporate purposes including the Prolec GE transaction.
Financial Outlook and Challenges
The company recently reported fourth-quarter orders of $22.2 billion, with backlog reaching $150 billion. Gas power equipment backlog expanded from 62 GW to 83 GW. GE Vernova raised its 2026 targets to revenue between $44-45 billion, adjusted EBITDA margins of 11-13%, and free cash flow of $5.0-5.5 billion. However, the company faces potential revenue shortfalls of approximately $250 million this year due to turbine installation delays at the Vineyard Wind offshore project.
Market Context and Data Watch
The broader market rally helped lift industrial stocks, with the Dow Jones Industrial Average closing above 50,000 for the first time. Investors now await postponed U.S. economic data, including January employment figures on February 11 and consumer price index data on February 13, which could influence interest rate expectations and impact growth-oriented industrial stocks like GE Vernova.