Shares in gas turbine, wind power, and electrification company GE Vernova (GEV 4.53%) rose by as much as 10% in early morning trading, only to settle back into a mid-single-digit gain by noon ET. The move comes after its first-quarter 2025 earnings report demonstrated that plenty of life is left in the economy's electrification trend. Moreover, management reaffirmed its full-year guidance -- a significant plus in an economy threatened by an ongoing tariff dispute.

GE Vernova remains on track

Management's strategy is to take advantage of the strength in demand for gas turbines while growing its higher-margin gas services business in the power segment. The good news is that orders of $6.2 billion in the quarter were 1.4 times its $4.4 billion in revenue, indicating more growth to come. An increase in the installed base of gas turbines helped services revenue grow by 18% in the quarter.

In its second largest segment, electrification, orders remain strong (at 1.8 times revenue in the quarter) as ongoing investment in electric grids and connecting renewable energy to the grid supports growth.

Finally, in the loss-making wind segment, GE Vernova needs to work through legacy offshore wind contracts while focusing on its profitable onshore wind business. The segment remains loss-making overall, but the earnings before interest, taxes, depreciation, and amortization (EBITDA) profit margin improved to negative 7.9% in the quarter compared to negative 10.6% in the first quarter of 2024.

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What's next for GE Vernova?

Management reaffirmed its full-year guidance for $36 billion to $37 billion in revenue and a high-single-digit EBITDA margin. It's a good result in a market stressing the potential for guidance reductions in light of uncertainty around tariffs.