New York, Feb 3, 2026, 11:41 EST — Regular session
- Shares climbed roughly 4% in late morning trading, continuing their recent streak of gains
- Xcel Energy secured five GE Vernova gas turbines along with capacity for several gigawatts of wind projects
- The utility deal comes after GE Vernova wrapped up its Prolec GE acquisition and launched a new senior notes offering
Shares of GE Vernova Inc. climbed 3.6% to $782.48 on Tuesday, following the announcement of a long-term supply deal with Xcel Energy. The power and grid equipment firm also announced plans to finance an acquisition aimed at broadening its transformer business.
The market sees the Xcel deal as further evidence that U.S. utilities are securing hardware ahead of time—everything from gas turbines to grid equipment—as they brace for increased load and supply chain constraints. At the same time, GE Vernova is moving from growth driven by backlog to growth driven by delivery, a shift that could pressure margins and cash flow.
Xcel outlined that the strategic alliance aims to back its generation and grid projects “well into the 2030s.” The deal kicks off with a reservation agreement for five F‑class gas turbines and a capacity reservation covering several gigawatts of wind projects. Xcel CEO Bob Frenzel described it as a move to boost “certainty of supply.” GE Vernova CEO Scott Strazik added the agreement allows both firms to “align” their technology roadmaps and services. (Xcel Energy Newsroom)
A reservation agreement basically secures a spot in the production queue: customers pay upfront to reserve manufacturing capacity for equipment that may take years to produce. This often comes with clearer pricing and delivery timelines compared to a regular order.
GE Vernova announced Monday it has finalized the acquisition of the remaining 50% stake in Prolec GE for $5.275 billion. The purchase was financed equally through cash and debt. The company expects the deal to be “immediately accretive,” boosting earnings before factoring in any cost synergies. Prolec GE employs around 10,000 people across seven manufacturing locations in the Americas, according to GE Vernova. (GE Vernova)
GE Vernova announced a registered public offering of senior notes to finance that deal. These notes, a type of corporate debt that ranks above equity in bankruptcy, will help cover general corporate needs as well as part of the Prolec GE acquisition. (GE Vernova)
Credit rating agencies responded swiftly. Fitch assigned a BBB+ rating to GE Vernova’s planned senior unsecured notes and confirmed the company’s issuer default rating, maintaining a positive outlook. S&P Global Ratings gave the proposed notes a BBB issue-level rating. Both ratings fall within investment grade, albeit near the lower end. (Fitch Ratings)
The stock surged 3.94% on Monday, closing at $754.97. This marked its sixth consecutive session of gains and pushed it to a new 52-week closing high, per market data. (MarketWatch)
GE Vernova reported last week that its backlog hit $150 billion, with gas power equipment backlog and slot reservation agreements climbing to 83 gigawatts. The company also disclosed $38.1 billion in projected revenue for 2025 and full-year orders totaling $59.3 billion, according to its statement. (GE Vernova)
GE Vernova’s turbines and grid hardware now compete directly with other major suppliers for long-term utility contracts, thanks to the Xcel deal. This pits them against rivals in both gas and wind equipment sectors.
Investors remain focused on several key concerns: the ultimate pricing of the new debt, how well Prolec GE blends into the electrification segment, and if the weaker units—especially wind—continue to weigh on margins and cash flow. (Reuters)
Traders are set to watch for news on the debt sale and any follow-up orders under the Xcel framework. After that, all eyes shift to GE Vernova’s next big event: the first-quarter 2026 earnings webcast slated for April 22. (GE Vernova)
