GE Vernova Reports Oct. 28. Here's the 1 Number That Matters More Than Its Multibillion-Dollar Backlog (Hint: It's Measured in Gigawatts).

GE Vernova, a major player in the energy sector, is expected to report strong growth in orders and backlog during its third-quarter results release on October 28. While the company's $176 billion backlog at the end of the second quarter has been a headline-grabbing figure, the real focus should be on the gigawatts (GW) of power in their gas power backlog.

CEO Scott Strazik has expressed optimism that this figure will reach $200 billion by early 2027, driven by strong third-quarter orders. However, the company's power segment, particularly its gas power turbines, is crucial for long-term earnings and cash flow, as these machines come with long-term service agreements that generate highly lucrative revenue over many years.

The article highlights that the company's heavy-duty gas turbines, specifically its H-class turbines, generate significantly more long-term services revenue than its smaller turbines. As the company continues to win contracts and the HA gas turbine orders increase, investors should keep a close eye on guidance for a run rate of 20-40 GW for the second half of the year, as this could significantly boost the stock price.

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