GE Vernova: Riding the Combined-Cycle Power Plant Boom

Soaring demand for electricity worldwide, backed by steadily growing data centers, industrial expansion, as well as significant population growth in emerging nations, has been fueling the rise of combined cycle power plants (CCPPs) of late. This trend offers strong growth prospects for GE Vernova Inc. (GEV), which provides a variety of products, ranging from heat exchangers to gas turbines, for the smooth operation of CCPPs.

As industries across the board rapidly transition toward a carbon-neutral environment, we are witnessing steady growth in CCPPs globally due to their superior efficiency, lower carbon emissions, and operational flexibility compared to traditional fossil fuel power plants.

In this evolving landscape, GE Vernova, as a key clean-energy technology leader, is collaborating with customers across the globe to enable a meaningful reduction in emissions from power generation. As a result, GEV is witnessing solid order growth for its combined-cycle technologies worldwide.

Notably, orders for the company’s Gas Power equipment nearly tripled year over year in the second quarter of 2025, which translated into solid 12.3% revenue growth for its Gas Power business segment.

Looking ahead, as CCPPs continue to be integral to the global energy mix, especially as they facilitate the integration of intermittent renewable sources into the existing grid, GE Vernova’s combined-cycle technologies should continue to witness strong order traction and thereby boost its operational results.

Evidently, in July 2025, the company declared that the first of three blocks of Taiwan Power Company Nan Bu Construction Organization’s Hsinta power plant, powered by GE Vernova 7HA.03 combined cycle equipment, has started to operate. Earlier in June, GEV signed a contractual service agreement to upgrade three GT26 gas turbine units, powering Uniper’s Grain power station in Kent, UK, with GT26 High Efficiency (HE) turbines.

Other Stocks Riding the CCPP Boom

GEV apart, other stocks that are benefiting from the rapidly growing number of CCPPs worldwide are mentioned below:

Siemens Energy (SMNEY): The company offers a large portfolio of???gas and steam turbines that power CCPPs, helping them achieve efficiencies in excess of 64%. Siemens Energy’s CCPPs are engineered for high efficiency and cost-effective electricity generation, catering to both 50Hz and 60Hz markets.

Baker Hughes (BKR): This company offers solutions for monitoring machinery, reducing fuel costs and minimizing unplanned outages in CCPPs. In March 2025, BKR secured an award for its NovaLT gas turbine technology from TURBINE-X Energy Inc., which is a supplier of industrial gas turbine packages in combined cycle configurations for U.S. data center project developers and power producers.

The Zacks Rundown for GEV

Shares of GE Vernova have surged a solid 190.3% in the past year, outperforming the industry’s 56.3% gain.

From a valuation standpoint, GEV is currently trading at a forward 12-month price-to-earnings (P/E) of 50.21X, representing a premium compared to the industry average of 20.51X.

The Zacks Consensus Estimate for GEV’s near-term bottom-line estimate has moved north over the past 60 days.

GEV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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