GE Vernova Stock Falls on Surprise Loss

GE Vernova (GEV) shares fell Wednesday morning after the energy company reported an unexpected loss, its second time in three quarters as a standalone company that it has posted an unprofitable period.

The former division of General Electric reported $8.91 billion in third-quarter revenue, about $10 million shy of analysts’ estimates, along with a $99 million net loss, smaller than the one it reported as part of the conglomerate last year but well below the $134.5 million profit expected, per Visible Alpha.

Offshore Wind Contract Losses Offset Margin Growth in Other Segments

GE Vernova said its margins improved in its power and electrification segments, but that growth was offset by contract losses in its offshore wind business.

The company affirmed its full-year outlook after lifting it in the second quarter, expecting revenue toward the higher end of the $34 billion to $35 billion range, and continues to say its wind segment should be “approaching profitability” by the end of the fiscal year.

Analysts have said GE Vernova is well-positioned over the long term as demand for electricity, especially in renewable forms, continues to increase across the globe to power energy-demanding projects like data centers needed for artificial intelligence (AI).

GE Vernova shares were down 3% an hour before the opening bell Wednesday but are almost 90% above where they started trading after being spun off from GE Aerospace (GE) in April.