GE Vernova Shares Surge to Unprecedented Highs on Record Order Book

The equity of GE Vernova continues its remarkable ascent, achieving successive record closes on the stock market. A formidable backlog of orders provides a solid foundation for long-term visibility, while operational milestones in major offshore projects and power plant upgrades reinforce the company's fundamental strength. The central question for investors is whether this momentum can be sustained alongside ambitious expansion targets.

A primary driver behind the stock's performance is the company's soaring order book. As of early February, the backlog reached $150.2 billion, representing a substantial year-over-year increase of 26.2%. This growth is particularly pronounced within the electrification and power generation segments, which have secured record orders. Analysts highlight this massive pipeline as a key catalyst for the share price, effectively securing capacity utilization for these divisions for years to come.

Reflecting this industrial dynamism, the stock closed at a new all-time high of $796.58. Over the past twelve months, investors have realized a total return exceeding 106%.

To bolster its manufacturing capabilities, particularly in transformers, GE Vernova recently finalized the acquisition of a 50% stake in Prolec GE. The transaction was funded through a $2.6 billion bond issuance, marking the company's first debt raise since its spin-off into an independent publicly traded entity.

Should investors sell immediately? Or is it worth buying Ge Vernova?

Strategic European Projects Advance

Significant progress is being reported on key European contracts. Construction has now commenced on the 2-gigawatt Nederwiek 2 offshore converter platform, a critical component of TenneT's grid connection program. Initial steel cutting for the platform began at shipyards in Singapore and Indonesia. This project falls under a broader framework agreement aimed at expanding capacity in the Dutch North Sea.

Concurrently, the company has announced operational successes in the United Kingdom. A technical modernization of two gas turbines at the Coryton power plant near London has outperformed original projections. While experts anticipated a capacity increase of 77 megawatts, the upgrade ultimately delivered an additional 85 MW. The plant's efficiency rose by 2.46%, which operator InterGen states will save approximately 67,500 tonnes of CO2 emissions annually.

With its current backlog exceeding $150 billion, GE Vernova's immediate focus is shifting to the timely execution of its major projects, especially those in the North Sea, to convert this robust pipeline into sustained revenue and earnings.