Power equipment manufacturer GE Vernova raised its full-year revenue and free cash flow forecast on Wednesday after reporting stronger-than-expected second-quarter earnings.
The company’s shares rose more than 6.3% in premarket trading as investors welcomed the upbeat outlook.
The company, which became an independent entity last year following General Electric’s three-way breakup, now expects free cash flow between $3 billion and $3.5 billion in 2024—up from its earlier guidance of $2 billion to $2.5 billion.
Revenue for 2025 is forecast to trend toward the higher end of its $36 billion to $37 billion range.
The revision comes amid a surge in US electricity demand, driven by rapid growth in artificial intelligence (AI) and cryptocurrency data centers, alongside continued increases in household and commercial usage.
According to the US Energy Information Administration, power consumption is set to reach record levels in both 2025 and 2026.
Tariff impact, inflationary pressure weigh on wind business
GE Vernova also warned that its updated guidance accounts for the impact of potential tariffs under US presidential candidate Donald Trump’s proposed policies.
The company anticipates a financial hit toward the lower end of a $300 million to $400 million range, due to expected cost inflation and supply chain disruptions.
These pressures have been particularly felt in its wind segment, which reported a core loss of $165 million in the second quarter.
The company cited higher service costs and offshore wind tariff impacts as contributing factors.
Despite the challenges, the company’s other segments performed strongly.
Core profit from its power segment—home to its steam and gas turbine operations—rose by 27% to $778 million.
The electrification unit more than doubled its profit from a year earlier, reaching $332 million.
Strong earnings reaffirm market optimism
GE Vernova posted adjusted earnings of $1.77 per share in the quarter, surpassing analysts’ estimates of $1.51 per share, according to LSEG data.
The strong results follow a similarly robust performance from GE Aerospace, another of GE’s spun-off units, which also beat estimates and raised its own forecast last week.
The company’s shares have hit record highs in recent weeks, supported by bullish sentiment from analysts who see GE Vernova as a key beneficiary of the long-term shift in energy demand.
Some strategists argue the company is well-positioned to capitalize on the electrification boom driven by the AI revolution and data center expansion.
“Wall Street has fallen in love with GE Vernova because of its ability to be a titan of the next generation of energy and the AI-boosted infrastructure spending boom,” Zack’s stock strategist Ben Rains has earlier noted.
BofA analyst Andrew Obin estimates that electricity demand in the US will grow at 2.5% annually between 2024 and 2035—up from just 0.5% in the past decade—translating into roughly 800 gigawatts of additional capacity needs.
GE Vernova, which supplies both the hardware and software to meet this demand, is seen as central to the effort to upgrade America’s energy infrastructure.
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