GE Vernova Inc. (NYSE:GEV) shares traded higher Tuesday after the company announced a major strategic alliance with a U.S. utility.
The agreement with Xcel Energy (NASDAQ:XEL) strengthens a long-standing relationship and targets long-term grid and generation investments.
The companies signed a Strategic Alliance Agreement to support energy projects through the 2030s. The partnership aims to improve reliability, affordability and sustainability for Xcel Energy customers.
GE Vernova will supply a broad range of equipment and services under the agreement. The companies said the structure provides greater supply certainty and cost visibility.
Initial Turbine Commitments
As part of the alliance, Xcel Energy executed a reservation agreement for five F-class gas turbines. The turbines will support future generation needs.
GE Vernova will manufacture the equipment at U.S.-based facilities. Xcel Energy also reserved capacity for multiple gigawatts of wind projects.
The projects will use GE Vernova's onshore wind turbine platforms.
The companies said the reservations advance Xcel's renewable energy pipeline. The agreement covers upgrades to existing infrastructure.
They are also collaborating on grid equipment initiatives. Those efforts include synchronous condenser technology deployments.
Innovation And Technology Collaboration
GE Vernova and Xcel Energy will jointly explore artificial intelligence applications. The partnership also includes grid modernization research.
The companies plan to pursue joint research and development programs. Management said the approach supports future technology pilots.
"As we work to meet our sustainability and grid modernization goals and seize this once-in-a-generation opportunity to power our communities’ growing demands for energy, Xcel Energy is committed to collaborating with organizations who bring the best skills, innovation and expertise to our projects," said Bob Frenzel, chairman, president and CEO of Xcel Energy.
"Our strategic alliance with GE Vernova allows us to move at the speed and scale necessary to make energy work better for our customers by providing safe, reliable and affordable energy well into the future."
Scott Strazik, CEO of GE Vernova, said the collaboration aligns technology roadmaps with Xcel Energy's long-term vision.
The five gas turbines fall outside GE Vernova's previously disclosed contracted backlog. The company reported that backlog during its earnings release on Jan. 28, 2026.
GEV Price Action: GE Vernova shares were up 2.06% at $770.53 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
