GE Vernova (GEV) has been on a remarkable run, with its stock soaring by 206% over the past year. This surge comes as the company capitalizes on increased electricity demand led by the build-out of data centers to support artificial intelligence (AI), industrial growth, the global transition to clean energy, the electrification of transportation, and a widespread push for grid modernization. These factors have bolstered demand for GE Vernova’s energy equipment and services, significantly boosting its backlog and overall growth trajectory.

GE Vernova Sees Solid Demand

The solid demand is translating into strong business wins. In the first quarter of 2025, GE Vernova secured $10.2 billion in orders, representing an 8% year-over-year increase. That’s about 1.3 times the company’s revenue for the quarter.  The company is also translating those orders into profits and cash flow. Its adjusted EBITDA margins are expanding, and free cash flow improved by $1.6 billion year-over-year in Q1 thanks to better working capital management and strong down payments.

Momentum is building across both the equipment and services segments. In Q1, the company grew its equipment backlog by $2.4 billion and services backlog by $2 billion. Notably, a key growth driver is GE Vernova’s services business, which now makes up more than 60% of its overall $123 billion backlog. These high-margin service contracts, which include upgrades and long-term maintenance agreements, offer strong revenue visibility and reliable cash flow. The increased utilization of GE Vernova’s installed base is also creating more service opportunities, supporting its long-term growth.

Demand for its Gas Power business remains strong. GE Vernova currently has 50 gigawatts of gas turbines under contract or reserved and expects to ship more than 10 gigawatts of equipment this year. Management aims to secure contracts for more than double that amount by year-end, potentially ending 2025 with over 60 gigawatts of gas power commitments. The second half of the year is expected to be even stronger, with a higher mix of combined-cycle orders, which typically carry a greater dollar value.

Looking further out, the order books for 2026 and 2027 are nearly full, with 2028 already shaping up. GE Vernova is even beginning to sign agreements that extend into the end of the decade, a reflection of solid demand.

The company is also making significant progress in nuclear energy. One of its key customers secured a license to construct North America’s first small modular reactor (SMR). That milestone is driving additional interest in nuclear from U.S. utilities and hyperscale tech companies, with discussions underway to bring GE Vernova’s first U.S. SMR online by 2030. Upgrades to existing nuclear facilities are also gaining momentum, extending plant life and capacity, which in turn drives high-margin service orders.

Electrification, meanwhile, is emerging as GE Vernova’s fastest-growing business segment. The backlog in this segment increased by $2 billion sequentially in Q1, representing a 10% increase from year-end levels. Demand for transformers, switchgear, and related infrastructure is strong, especially in North America and Asia.

Outlook: Momentum Set to Continue

Looking ahead, GE Vernova’s momentum is expected to continue, fueled by strong demand in its Power and Electrification segments. In Power, growth and margin expansion will be driven by the strength of its Gas Power business, supported by rising AI-related data center demand and capacity investments. The Services business, a key driver of revenue and cash flow, is also poised for significant growth, with increasing orders tied to a growing installed base.

In Electrification, demand is accelerating as customers boost grid investments. The segment supplies critical infrastructure essential for grid reliability. A robust backlog and strong order flow position the business for sustained future growth.

Analyst Sentiment: Bullish With Room to Run

Analysts are optimistic about GE Vernova’s trajectory, with GEV stock earning a “Strong Buy” consensus rating.  Moreover, the highest price target for GEV stock is $702, indicating about 34% upside from current levels.

The Bottom Line

The rally in GEV stock has driven its valuation higher and is a reason for caution.  However, with strong fundamentals, a growing and high-margin services backlog, robust demand across Power and Electrification segments, and improving margins, GE Vernova appears well-positioned for continued growth.