GE Vernova's profit topped third-quarter expectations on Wednesday, driven by strong equipment orders and surging U.S. power demand from data centers supporting artificial intelligence workloads.
Growing power demand from AI and other data-heavy industries is helping power equipment makers like GE Vernova tap long-term growth in U.S., strengthening its grid and turbine businesses.
Shares of Vernova, which was spun off from General Electric in March 2024, have surged more than 345% since the split. They were up nearly 4% in premarket trading.
The company reported orders worth $14.6 billion, a 55% rise, led by equipment demand in power and electrification sectors.
GE Vernova had on Tuesday said it would acquire the remaining 50% stake in transformer manufacturer Prolec GE for $5.28 billion, strengthening its North American grid equipment business.
It reported an adjusted profit of $1.67 per share, beating expectations of $1.62, according to data compiled by LSEG.
Its electrification unit reported a core profit of $393 million, up 95.5% from a year ago, while the power unit posted $645 million, a 29% rise, driven by demand for grid equipment and steam and gas turbines.
The company's wind unit narrowed its core loss to $61 million from $317 million, supported by increased offshore wind deliveries and growth in onshore wind services.
The wind division has faced challenges from offshore turbine failures and project delays, resulting in pause to orders and cost-cutting measures.
The company said the total estimated impact of global tariffs for 2025 is trending toward the lower end of $300 million to $400 million, after accounting for contractual protections and mitigating actions.
The U.S. continues to rely on imports for key components across its energy sector - from extraction and power generation to electricity distribution.
GE Vernova reported one fatality in a motor vehicle accident.
(Reuters)