Once more unto the breach with Al Root at Barron's, December 9:
Coming into Tuesday trading, GE Vernova stock was up 89% this year
GE Vernova has become a hot derivative play on the growing demand for electricity from power-hungry AI data centers. Company management met with investors in New York City on Tuesday to discuss its future.
It looks bright. Expectations were high coming into the event, and it looks as if the company cleared the bar.
For starters, the company provided initial financial forecasts for 2026. GE Vernova expects revenue of $41 billion to $42 billion and Ebitda profit margins of between 11% and 13%, implying 2026 earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $4.5 billion to $5.5 billion. Wall Street currently projects revenue of $41.6 billion and Ebitda of $5.3 billion.
The Ebitda figure might look a little light relative to expectations, but the guidance is despite a persistently weak wind-power business.
Then there is 2028. For that year, Vernova expects revenue of $52 billion and 20% Ebitda profit margins, implying Ebitda of more than $10 billion. Wall Street projects 2028 revenue of $52.8 billion and Ebitda of $9.4 billion.
GE Vernova’s prior 2028 guidance called for revenue of $45 billion and 14% Ebitda profit margins. Things have gotten much better. Higher demand and improved pricing have driven the improvement....
....MUCH MORE
Also on GEV, this time from the Boston Globe, December 9:
GE Vernova sets a new world record, for toy donations
The stock is up $36.90 (+5.90%) at $662.20 in afterhours trade.
Recently from Mr. Root and Barron's:
- "‘Baseload Power’ Will Be Big in 2026. 5 Stocks Can Win." (JP Morgan gets on board the love train)
- GE Vernova Investor Day: The Stakes for the Stock Are Huge
- Dec. 9 - "GE Vernova Investor Day Is Coming. What It Means for the Stock" (GEV)
He seems to have a pretty good feel for this stuff.
