So, it turns out the digital world, all those cloud things and blinking servers, has a rather insatiable appetite for electricity. Who knew? Apparently, the people in charge of actually making the electricity did, because they’re scrambling to keep up. It’s a bit like discovering your pet hamster has developed a fondness for caviar – unexpected, and requiring a significant logistical overhaul. And that’s where GE Vernova (GEV +6.09%) comes in. They’re not promising to solve the energy crisis overnight, mind you, but they’re positioning themselves rather nicely to profit from it, which, as an investor, I find… agreeable.
A Bright Spark
GE Vernova, if you’re keeping track – and honestly, who isn’t these days? – is one of the offspring of the General Electric empire. They’ve decided to specialize, which, in the business world, is a bit like deciding to only collect stamps featuring aardvarks. It narrows the focus. They’ve got three main lines of business: power generation, wind energy, and, rather broadly, ‘electrification.’ The wind side is… well, let’s say it’s undergoing a period of strategic adjustment. But the power and electrification bits? Those are positively humming.
Their orders are up 55% year-over-year, to a rather substantial $14.6 billion. That’s a lot of turbines and transformers. Ken Parks, their CFO, recently gave a bit of a pep talk to investors, suggesting things will continue to look rosy through 2026 and beyond. They’re anticipating revenue from their power segment to jump 16-18% next year, and electrification to grow around 20%. All told, they’re looking at a potential $41 billion in revenue by 2026. It’s the sort of projection that makes you wonder if everyone involved has checked their calculators twice.
The stock, if you’re wondering, has had a rather impressive run, skyrocketing over 450% since it was spun off in March 2024. They’ve even started paying dividends, recently bumping them up from $0.25 to $0.50 per share quarterly. Which is, you know, nice. I suspect this trend will continue, as they become increasingly vital in supplying the juice for all those artificial intelligence behemoths that are gobbling up energy like it’s going out of style.
The Grid Needs a Hand
But it’s not just about the AI folks. The whole power grid, that sprawling, often-overlooked network that keeps the lights on, is… let’s just say it’s showing its age. It’s a bit like a Victorian plumbing system trying to cope with modern demands. GE Vernova is uniquely positioned to help modernize it, which, frankly, is a rather good business to be in. They’re not just building new stuff; they’re helping to keep the existing infrastructure from collapsing under the strain.
They’ll be announcing their fourth-quarter and full-year 2025 results on January 28th. Analysts are anticipating good things, and if those expectations are met, I wouldn’t be surprised to see another solid year of growth. GE Vernova isn’t a miracle cure for all our energy woes, but it’s a company that appears to be well-positioned to profit from a very real and growing need. And as an investor, that’s a rather comforting thought.
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2026-01-20 00:15