The GE Vernova story

What drives the business

• Spun out of GE, GE Vernova serves utilities, developers, governments and electricity users through Power, Wind and Electrification, with an installed base that generates approximately 25% of the world's electricity.
• Its strategy combines servicing that installed base with expanding equipment production, while services represent 50% of its $176.3 billion backlog.
• In the quarter to June 2026, Power orders reached $16.7 billion, and gas equipment backlog and slot reservation agreements reached 116 GW, making production capacity and conversion of reservations into orders central to execution.
• Electrification orders reached $6.3 billion in the quarter to June 2026, up 66% organically, while orders for data centers exceeded $5 billion in the first half of 2026, more than double the 2025 total.
• Wind's equipment footprint includes SunZia in New Mexico, which became operational in the quarter to June 2026, but segment revenue fell as weaker earlier Onshore Wind orders translated into lower deliveries.

What the price assumes

At $949.77, TenQ's reverse DCF implies free cash flow after stock pay grows 7.8% a year for ten years using a 10.2% discount rate.

That compares with delivered growth of 179.5% a year over the last 2 fiscal years and TenQ's 91.8% check bar, which slows that record halfway toward 4%.

The implied growth clears that check, but the short cash flow history limits historical comparisons, and the earnings yield of 3.6% trails the Treasury yield of 5.2%.

Value GEV on your own assumptions

What could change the story

• Working capital benefits were a primary contributor to the quarter to June 2026 cash increase, so the pace of cash generation depends on more than operating profit growth.
• Reported earnings in the first half of 2026 included a $3,992 million gain from remeasuring the previously held Prolec GE interest, which complicates comparisons with ongoing profitability.
• Wind faces both weaker equipment demand and higher project costs, with management expecting approximately $400 million of segment EBITDA losses for 2026.
• The operating margin of 4.3% trails TenQ's sector benchmark of 10.7%, while the return on capital employed of 7.2% falls below its 10.0% bar.
• Manufacturing constraints, supply chain disruptions and errors in estimating service obligations could interfere with converting the large backlog into profitable revenue.

What to watch next

• The next releases will test raised 2026 guidance for revenue of $45.5-$46.5 billion and free cash flow of $11.5-$12.5 billion, alongside unchanged adjusted EBITDA margin guidance of 12%-14%.
• Management expects annual gas turbine output capacity to reach 20 GW in the third quarter of 2026 and gas equipment under contract to reach at least 125 GW by the end of 2026, making shipments and reservation conversions important measures of progress.
• Electrification's 2026 revenue guidance of $14.5-$15.0 billion includes approximately $3.1 billion from Prolec GE, so organic growth will help distinguish underlying demand from acquisition contributions.
• Wind's equipment deliveries and Offshore Wind project costs will show whether the segment is moving toward management's 2026 loss guidance.

Sources

• GE Vernova's earnings release, filed with the SEC
• Its latest 10-Q or 10-K, for the risk factors
• The GEV stock report, for every figure and check