This article first appeared on GuruFocus.
GE Vernova (NYSE:GEV) shares rose nearly 3% at 10:40 a.m. ET on Wednesday, November 11, in regular trading, after a 4% drop on Tuesday triggered by SoftBank’s revised power-equipment plans for its Ohio data center campus. SoftBank’s investor briefing booked a 597.2 billion, or $3.7 billion, loss tied to U.S. power-generation procurement for AI data centers.
The charge includes $2.9 billion of non-refundable advance payments and $0.9 billion for contract modifications and settlements, linked to the PORTS-Pike project and others. TIKR reported that SoftBank said in May it had reserved turbines from makers including GE Vernova, and that the Ohio project is under “a thorough reassessment.” GE Vernova’s third quarter showed orders of $29.3 billion, up 96% organically, a $197 billion backlog and gas power backlog plus slot reservations of 116 to 122 gigawatts.
SoftBank’s entire charge equals about 1.9% of GE Vernova’s backlog, and not all of it relates to GE Vernova equipment. Because the forfeited advances were non-refundable, the cash impact may fall on SoftBank rather than the supplier, though freed slots must still be resold. GuruFocus gives GE Vernova a low GF Score of 23/100, with Financial Strength 6/10 and Profitability Rank 3/10, and its page shows no GF Value, citing insufficient data. That leaves valuation resting on backlog conversion. The next marker is management’s target of at least 130 gigawatts of gas backlog and reservations by year-end.
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