<div id="readability-page-1">Money Markets Is It Too Late To Buy GE Vernova Stock?  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Dec 10, 2025, 08:49am EST  SHANGHAI, CHINA - 2025/11/08: The GE Vernova logo is displayed at the 8th China International Import Expo. (Photo by Sheldon Cooper/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images GE Vernova (NYSE: GEV), the energy and electrification behemoth that emerged from General Electric, is experiencing an upward trend following its investor day. This increase seems warranted, and the stock likely has additional potential for growth despite its current premium valuation. The main catalyst is the improved medium-term guidance and an enhanced cash flow narrative, which offers investors a clear path to &#34;grow into&#34; the valuation, moving beyond simple reliance on optimism.  Before we get into the specifics, if you are looking for an upside with less volatility than holding an individual stock like GEV, consider the High Quality Portfolio . It has consistently outperformed its benchmark—a mix of the S&amp;P 500, Russell, and S&amp;P MidCap indexes—and has recorded returns of over 105% since it started. Why is that? As a collective, HQ Portfolio stocks have delivered superior returns with less risk compared to the benchmark index; a smoother experience, as demonstrated in HQ Portfolio performance metrics.  Is the new guidance enough to drive more upside? Yes, because the change is significant regarding both growth and profitability. Management now anticipates approximately $52 billion in revenue and a 20% adjusted EBITDA margin by 2028, an increase from $45 billion and 14% previously, which indicates a significantly higher earnings and free cash flow base than what the market was previously factoring in. This reset transforms the narrative from “good cyclical recovery” to “structurally higher profit machine connected to the energy transition,” which can support a higher stock price over time, even at today’s elevated levels.  What provides assurance that this is not merely aspirational? The backlog and order trends offer solid support. GE Vernova has secured 18 GW of gas turbine contracts year-to-date and expects around 80 GW of combined slot reservations and backlog by the end of the year, effectively locking in years of future revenue in its Gas Power division. Management also aims to increase total backlog from approximately $135 billion to about $200 billion by 2028, including a doubling of Electrification backlog from $30 billion to $60 billion, which enhances visibility in grid, transmission, and related services as electrification and renewables integration speed up. This makes the 2028 revenue and margin targets more “underwritten by contracts” than “hoped for in a slide deck.”  How is that reflected in cash and capital returns? The company now projects at least $22 billion in cumulative free cash flow from 2025 to 2028, up from an earlier minimum of $14 billion, even after planning approximately $10 billion of capex and R&amp;D to back growth and technology. This improved cash outlook is already manifesting in shareholder returns: the board has announced a $0.50 per share quarterly dividend payable in the first quarter of 2026 and increased the buyback authorization from $6 billion to $10 billion. For equity investors, this combination of rising structural cash generation and explicit capital returns is a compelling argument that equity value can still compound from this point forward.  MORE FOR YOU Is current financial performance backing this optimism, or is it all about future prospects? Today’s figures represent a mix of solid growth alongside disappointing margins. Revenues have risen approximately 9.4% over the past twelve months , from around $34 billion to $38 billion, and the most recent quarter experienced an 11.8% year-on-year increase to $10.0 billion, demonstrating that demand is not merely theoretical. Nevertheless, profitability remains weak: the last four quarters produced about $1.4 billion in operating income, resulting in an operating margin near 3.7% , operating cash flow of $3.4 billion leading to a 9.1% OCF margin , and net income of $1.7 billion, which suggests a net margin around 4.5% . The optimistic scenario relies on those margins gradually increasing towards the 20% EBITDA target as the business mix improves, costs are reduced, and higher-margin service and grid segments grow.  Does the balance sheet serve as a helper or a hindrance in this situation? It is definitely a significant advantage. GE Vernova is debt-free, a remarkable position for a capital-intensive, project-heavy industrial company associated with long-cycle energy infrastructure. With cash and equivalents amounting to $7.9 billion against $54 billion of total assets, the cash-to-assets ratio sits at 14.6%, well above the S&amp;P 500 average, and that financial strength supports both its planned investment strategy and the high level of capital returns. This financial stability mitigates downside risk from project delays or macroeconomic disruptions and bolsters the argument that the company can achieve its 2028 roadmap without straining the balance sheet.  So if the fundamentals are improving and the balance sheet is robust, why label the stock expensive—and does this hinder the potential for upside? The stock appears expensive based on simple “price per dollar of current sales or profit” metrics because investors are assessing GE Vernova based on projected earnings over the next few years, rather than its current earnings. Margins remain low, yet the multiple is already at a premium compared to the broader market and many industrial/utility rivals, which means that execution expectations are elevated. However, this does not eliminate upside; it merely clarifies the risk-reward scenario: if management successfully delivers 20% EBITDA margins, at least $22 billion in free cash flow from 2025–2028, and a $200 billion backlog with strong Electrification growth, the current valuation can be “earned into,” and the stock can still experience appreciation from this point as earnings and cash flow increase.  What is the definitive conclusion for an investor contemplating the recent movement? GE Vernova today represents a high-quality energy-transition platform characterized by solid revenue growth, very strong financial stability, and currently weak profitability that is projected to improve significantly. The recent climb has positioned the stock into “premium” territory based on current figures, but the new medium-term guidance, expanded backlog, and enhanced cash and capital-return profile suggest that there remains significant potential for equity value growth. In summary, while the stock is not inexpensive, considering the guidance reset and balance sheet strength, it still presents upside potential rather than simply being a clear “too late” scenario.  See, investing in a single stock without thorough analysis can be risky. Consider the Trefis Reinforced Value (RV) Portfolio , which has outperformed its all-cap stock benchmark (a blend of the S&amp;P 500, S&amp;P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for investors. Why is this so? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provided a responsive way to capitalize on favorable market conditions while minimizing losses when markets decline, as detailed in RV Portfolio performance metrics .  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

<p>GE Vernova, emerging from General Electric, shows potential for growth despite its premium valuation. Improved medium-term guidance and enhanced cash flow narrative support this outlook. Management projects $52 billion in revenue and a 20% EBITDA margin by 2028, backed by strong backlog and order trends. The company plans $22 billion in free cash flow from 2025-2028, with increased dividends and buyback authorization. Current financials show solid growth but weak margins, with expectations for improvement. GE Vernova's debt-free status and strong cash position further bolster its investment appeal.</p>