GE Vernova stock notched a record high after the S&P 500 component cleared earnings views and raised parts of its outlook. Other energy stocks also powered higher. Talen Energy led a surge after reporting the results of an energy auction from Tuesday. Oklo and Liberty Energy announced a hybrid, next-generation energy partnership.
GE Vernova reported earnings of $1.86 per share to clear FactSet estimates for $1.76 per share. Revenue increased 11% to $9.1 billion, beating expectations for $8.8 billion.
Orders rose 12% to $12.4 billion, driven by demand growth for power and electrification equipment and services. The company's backlog jumped by $5.2 billion sequentially from equipment and services.
CEO Scott Strazik called Q2 a "productive" quarter and said that GE Vernova is positioned to accelerate growth and margin expansion.
"We are at the beginning of an investment supercycle into more reliable baseload power, grid infrastructure and decarbonization solutions," Strazik said in the release. "Our near-term results are improving, but more importantly, our long-term potential is accelerating faster."
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GE Vernova's power segment saw $7.1 billion in orders, up 44% driven by gas power equipment. Revenue for the power unit climbed 7% to $4.8 billion.
Its wind orders declined by 5% due to lower Onshore Wind equipment demand. Revenue for the unit climbed 9% due to higher Onshore wind deliveries. However, tariffs for offshore wind and higher onshore wind services costs offset more profitable equipment volume from onshore wind.
GE Vernova's electrification orders fell 31% due to the large value of equipment orders last year, but the company noted that strong demand for grid equipment continued. Electrification revenue increased 23%, driven by grid solutions. The equipment backlog increased by $2 billion from last quarter with Europe, North America and Asia up about 10%.
GE Vernova lifted its 2025 outlook on results. The S&P 500 component now expects revenue at the higher end of its $36 billion to $37 billion range. It raised its free cash flow forecast to range from $3 billion to $3.5 billion, compared to its prior estimate for $2 billion to $2.5 billion.
GE Vernova expects the power segment to deliver 6% to 7% organic revenue growth, up from mid-single digits. Wind revenue is expected to be down mid-single digits. Organic revenue for the electrification unit is expected to increase about 20%. The company previously expected electrification sales in the mid-to-high teens.
GE Vernova Stock, Other Energy Plays
GE Vernova stock rallied 14.6% Wednesday, hitting a new record high and erasing its 3% decline from yesterday. Shares on Thursday peaked at 581.27 before easing back to their 21-day line by Tuesday.
GEV stock is up 41% from a late-May breakout from a deep cup base, according to MarketSurge charts.
Shares have soared 91% so far this year, making GE Vernova one of the top five performers in the S&P 500.
Talen Energy Auction
Houston-based utility Talen Energy rallied after reporting results from an energy auction on Tuesday. Talen said that the auction, held by PJM Interconnection — the operator of the largest U.S. power grid — saw a 22% increase in energy prices vs. year-ago levels.
The grid operator, which handles electricity needs for more than 67 million people across 13 states and the District of Columbia, reported securing 134,311 MW of unforced capacity generation (UCAP). UCAP represents a utility's maximum output, adjusted for its estimated probability of service outages.
Talen said it auctioned a total of 6,702 megawatts at $329.17 per megawatt-day across the mid-Atlantic Coast, New Jersey and central and eastern Pennsylvania. The result equated to approximately $805 million in capacity reserves for the 2026/2027 planning year, which runs to May 31, 2027.
Talen shares bolted 8.2% higher Wednesday.
TLN stock is extended after an early June breakout.
Other power providers also rallied.
Vistra jumped almost 6%. VST is actionable on a rebound from support at its 21-day moving average.
NRG Energy swung 4.3% higher. NRG is consolidating, and could be actionable as it cuts back above resistance at its 50-day moving average.
Oklo, Liberty Partner On Nuclear, Natural Gas
Oklo and Liberty Energy on Wednesday announced a strategic alliance to accelerate integrated power solutions for large-scale, high-demand customers such as data centers and industrial facilities. Per the agreement, Liberty's ForteSM natural gas and load management will provide the initial primary power and flexible energy services, as well as future grid management services. Oklo's Aurora nuclear reactor will be integrated at a later date, to provide clean, continuous baseload energy.
Executives for the companies in the release called it a "turnkey alternative" and "next-generation power solution."
OKLO stock advanced more than 9% Wednesday on the news, to rebound above its 10-day line.
Liberty shares popped almost 18% with a strong rebound above its 50-day line.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
