BofA Securities Sees GE Vernova’s Power Demand Fueling Another Strong Quarter
BofA Securities remains bullish on GE Vernova Inc. (NYSE:GEV) as strong demand for power-generation and grid equipment continues to support the company’s growth outlook.
Analyst Andrew Obin reiterated a Buy rating on the stock with a $1,310 price forecast.
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Obin expects strong second-quarter order growth, driven by demand for gas-power and grid equipment. BofA Securities forecasts total orders of $19.6 billion, up 59% year over year and slightly above the $19.4 billion consensus estimate.
The projection includes $11.1 billion in Power orders, $7 billion in Electrification orders, and $1.6 billion in Wind orders.
Power: Gas Demand Drives Orders
BofA Securities expects GE Vernova to secure 13 gigawatts of gas-power equipment contracts during the quarter. The projection includes 9 gigawatts of firm orders and 4 gigawatts of net slot reservation agreements.
The firm forecasts Power revenue of $5.61 billion, up 17% year over year, with an adjusted EBITDA margin of 17.9%.
Power orders could rise 57% to $11.1 billion, supported by demand for gas-turbine equipment and services.
Electrification: Key Upside Driver
Obin views Electrification as the segment most likely to outperform expectations.
BofA Securities forecasts segment revenue of $3.47 billion, representing 60% reported growth. The estimate includes a 25-percentage-point contribution from GE Vernova’s acquisition of the remaining interest in the Prolec joint venture.
The firm projects an 18% adjusted EBITDA margin and believes management’s guidance for modest sequential margin expansion may prove conservative.
Wind: Weakness Persists
BofA Securities expects Wind revenue to decline 16% to $1.88 billion, reflecting continued weakness in the U.S. onshore wind market.
The firm forecasts an adjusted EBITDA loss of $280 million for the segment.
Financial Outlook and Valuation
BofA Securities projects second-quarter revenue of $10.84 billion and adjusted EBITDA of $1.21 billion.
For 2026, the firm forecasts revenue of $45.49 billion, adjusted EBITDA of $6.27 billion, and free cash flow of $7.35 billion.
BofA Securities bases its $1,310 price forecast on 40 times estimated 2027 adjusted EBITDA. Obin believes the premium valuation reflects GE Vernova’s above-peer earnings growth and margin-expansion outlook.
Risks include changes to wind incentives, execution challenges, weaker gas turbine demand, and contract cost overruns.
Stromnetz Berlin: GE Vernova Wins Grid Contracts
Separately, GE Vernova said Thursday that it secured two contracts from Stromnetz Berlin GmbH to design, deliver and install 110-kilovolt gas-insulated substations in Wittenau and Neukölln.
The substations will use GE Vernova’s SF₆-free g³ technology, which reduces the insulating medium’s global warming potential by about 99% compared with SF₆.
The projects will modernize sections of Berlin’s high-voltage network serving homes, businesses and public infrastructure.
The contracts expand the company’s involvement in European grid modernization and support demand for its Electrification equipment.
GEV Stock Price Activity: GE Vernova shares were down 3.36% at $1,019.80 at the time of publication on Thursday, according to Benzinga Pro data.
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