GEVGE Vernova Inc.

GE Vernova is the energy arm spun out of the conglomerate: turbines, grids and wind.

Three parts with different economics. Gas turbines are the profitable core: sold rarely, serviced for decades, with the aftermarket supplying most of the margin. Electrification — transformers, switchgear, control systems — has a long order backlog and structural growth. Wind loses money and remains the main problem.

Demand for generation and grid equipment is rising for a reason unrelated to electric cars: AI data centres consume enough to force operators to order new capacity and upgrade networks. That re-rated the whole sector and changed the conversation about the company.

The wind business suffers from fixed-price contracts signed before materials and logistics inflation, and from warranty costs on the installed fleet. The company listed recently, pays a small dividend and buys back stock.