Dan Rohinton GE Vernova GEV-N BUY ON WEAKNESS Sep 24, 2025

It reports Wednesday. Data centres are red hot and need energy and power plants, which they will need from GEV. GEV had a good 2024 and should have a good 2025.

 Is up 200% since spinning off from GE last April. Nuclear power is a small part of their business and it will take years to pay off. But they have a strong backlog of orders a record $13.2 billion worth; revenues are up a solid 5% YOY, but EPS fell far short. Free cash flow as a little light. Their business is 50/50 equipment and services; they sell equipment which they then service for years, which is a great setup. The equipment backlog is up 50% in the past two years, largely from price increases and customs have no choice but to pay off. So headline numbers in their recent earnings were disappointing, but their backlog numbers are phenomenal. If they can maintain their pricing power, then shares will continue to rise.

She's up 160%, so she trimmed it. It's fairly rich. Are better opportunities in data centres like Eaton. Would buy back GEV at better levels.

Today they reported a strong quarter and positive full-year forecast despite the tariff turmoil and inflation. The stock is a good entry point now. They beat Q1 revenues.

Likes industrials as a whole, especially the global ones. His choice in the space.

This has run so far that it's too expensive now. Multiples don't support future cash flow growth.

They won't raise capacity and the industry has been burned many times. They need to expand capacity and build more turbines.

Just had a nice little pullback, but long-term chart looks great. Backlog for turbines is deep, being sold into natural gas and nuclear plants.

By far is the best-performing industrial on the S&P, up 193% the past year. Has been hit hard lately since Trump came out against wind subsidies. GEV has a wind division, but GEV is chiefly a natural gas play.