Is Rise in Floating Wind Farm Tech Opening New Avenues for GE Vernova?

Globe and Mail

15 hours ago

As the world undergoes a revolutionary energy transition process, a significant expansion in floating offshore wind farms is being witnessed recently. The installation of wind turbines further ashore will enable these farms to capture more wind and thereby generate more energy compared to fixed-bottom offshore farms. This presents strong growth opportunities for GE Vernova Inc. GEV, a pioneer in the wind energy industry, whose fleet of approximately 57,000 wind turbines is currently operational in more than 51 countries worldwide.
The company's Haliade-X turbines, currently operational in several North Sea projects, are among the most powerful offshore wind turbines available today. In the latest development, these turbines are capable of generating up to 18 megawatts (MW) of energy.
GEV's expertise in manufacturing world-class offshore wind turbines and the success of the Haliade-X in fixed-bottom projects suggest it is well-positioned to capitalize on the growing floating offshore wind sector. This expectation is further supported by GEV's active role in the industry, as demonstrated in 2024 when it completed scheduled maintenance for a major European floating wind farm.
Moreover, in 2021, GEV's research team unveiled a proposal for a floating version of the Haliade-X. This further reflects GE Vernova's capabilities and initiatives to expand its reach in the emerging floating offshore wind market.
Other Stocks Warranting a Look
Investors looking out for other stocks that have also been investing in floating wind farms and associated technology may consider keeping Siemens Energy SMNEY and Vestas Wind Systems VWDRY in their watchlist.
Notably, wind turbines of Siemens Gamesa, a unit of Siemens Energy, have powered Hywind Tampen, the world's largest floating offshore wind power plant, located in Norway. Its turbines have also been installed in Provence Grand Large, France's first floating offshore wind farm.
On the other hand, Vestas, being a pioneer in floating wind technology, has installed turbines on floating foundations for over a decade, including projects off the coasts of Scotland and Portugal. In 2023, VWDRY signed a preferred supplier agreement to supply and install 33 units of its V236-15.0 MW turbine for a 495 MW floating offshore wind project in South Korea.
The Zacks Rundown for GEV
Shares of GE Vernova have surged a solid 185.2% in the past year, outperforming the industry 's 49.4% gain.
From a valuation standpoint, GEV is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 53.75X, representing a roughly 153.5% premium compared to the industry average of 21.20X.
The Zacks Consensus Estimate for GEV's 2025 and 2026 sales suggests a year-over-year improvement of 6.4% and 10%, respectively. The bottom-line estimate for 2025 has moved south over the past 60 days, while the same for 2026 has moved north.
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).