GE Vernova Sees 107% Rally on 83GW Gas Turbine Backlog and $5.3B Prolec GE Deal
GE Vernova shares jumped 107% on booming AI data center demand for electricity infrastructure. The Power unit holds an 83GW gas turbine backlog (aiming for 100GW by end-2026), and its $5.3B Prolec GE deal bolsters transformers while generating $3.7B free cash flow, funding dividends and buybacks.
1. Stock Rally Driven by AI Demand
GE Vernova shares have surged 107% over the last 12 months on booming demand from AI data centers for power infrastructure. Investors have rewarded the stock for its exposure to high-growth electricity needs.
2. Record Gas Turbine Backlog
The Power segment booked a record 83GW of gas turbine orders with a goal to reach 100GW by end-2026, underpinning multi-year revenue visibility. The firm’s $150 billion segment backlog upholds further growth prospects.
3. Strengthened Transformer Business and Cash Returns
The $5.3 billion Prolec GE acquisition expands GE Vernova's transformer capacity to address grid modernization bottlenecks. With $3.7 billion free cash flow projected for 2025, the company launched dividends and buybacks while trading at 45x earnings, though offshore wind headwinds persist.