GE Vernova's profit topped third-quarter expectations on Wednesday, driven by strong equipment orders and surging US 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 US, strengthening its grid and turbine businesses.
Shares of Vernova, which was spun off from General Electric in March 2024, have surged more than 345 per cent since the split. They were up nearly four per cent in premarket trading.
The company reported orders worth $14.6 billion, a 55 per cent rise, led by equipment demand in power and electrification sectors.
GE Vernova had on Tuesday said it would acquire the remaining 50 per cent 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 per cent from a year ago, while the power unit posted $645 million, a 29 per cent 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 US continues to rely on imports for key components across its energy sector - from extraction and power generation to electricity distribution.
(Reporting by Katha Kalia in Bengaluru; Editing by Sriraj Kalluvila)
