GE Vernova was raised to a Zacks Rank #2 (Buy) following growing confidence in its ability to deliver stronger-than-expected earnings. Analysts cited a 15% increase in order backlog over the past six months and a 20% expansion in adjusted EBITDA margins in the Power segment during the third quarter. The upgrade reflects anticipation of sustained margin improvement in both Power and Electrification units, as well as a recovering services business that contributed over $5 billion in annual revenue.

In its fourth quarter, GE Vernova reported adjusted earnings per share of $13.39, well above the consensus estimate of $3.05, driven largely by a one-time tax benefit. Organic revenue grew 8% year over year, led by a 12% increase in gas turbine sales and a 10% rise in grid equipment orders. Segment EBITDA totaled $950 million, representing a 25% margin, up from 20% a year earlier.

For full year 2025, GE Vernova achieved $38 billion in revenue, $3.2 billion in EBITDA and generated $3.7 billion of free cash flow. Management increased 2026 revenue guidance by 5% and raised adjusted EBITDA outlook by $200 million, reflecting continued strength in power generation equipment and grid modernization projects. The company also announced a doubling of its quarterly dividend, signaling confidence in cash-flow sustainability.

Since its Buy rating in April, GE Vernova’s stock has climbed approximately 123%, driven by robust order flow and margin expansion. While Power and Electrification segments are delivering profitable growth, the Wind business remains loss-making, with a cumulative $1.2 billion in operating losses over the past year. Elevated regulatory review in renewable energy markets poses additional execution risk, suggesting that current valuation already factors in much of the company’s recent gains.