GE Vernova (NYSE:GEV) is expected to report strong third quarter results, supported by continued growth in gas turbine orders, according to analysts at Bank of America.
The firm forecasts $12.4 billion in third-quarter orders, representing a 1.33x book-to-bill ratio and roughly 3% above the $12 billion consensus.
They attributed upside to the company’s Power segment, which the analysts expect to report $7.2 billion in revenue.
Adjusted EBITDA for the quarter is projected at $0.8 billion, in line with Street estimates.
Orders for gas turbines are expected to reach approximately 7 gigawatts (GW) in Q3, up from 5.1 GW in both the previous quarter and Q3 of 2024.
The firm expects GE Vernova’s full-year 2025 gas turbine orders to reach roughly 27 GW, a 34% increase from 2024.
Demand trends remain supportive, with technology companies signing new power purchase agreements.
“The demand backdrop continues to improve, with cloud giants signing 11 GW of new power purchase agreements in the first half of 2025, Oracle's increase in cloud services signings, and regulatory approval for 2 GW Meta/Entergy site in Louisiana,” the analysts highlighted.
However, they noted potential investor concerns related to industry supply. “Further increases in industry-wide capacity would require removing supply chain bottlenecks, which will not happen quickly,” they wrote.
Looking ahead, US onshore wind may face headwinds as tax credits phase out under the Trump administration's One Big Beautiful Bill Act.
“Should the demand backdrop remain weak, management expects US onshore wind to decline 10% to 15% year-over-year in 2026 and for adjusted EBITDA margins to decline from high-single digit in 2025 to mid-single digit in 2026,” the analysts wrote.
Bank of America maintained a ‘Buy’ rating on GE Vernova with a $725 price target, citing ongoing growth in US electrical load and grid investment as key drivers for the company.
Shares of GE Vernova traded hands at $598 on Friday, having gained more than 80% so far in 2025.