GE Vernova Rebounds After SoftBank Equipment Reassessment

GE Vernova shares rose nearly 3% on Wednesday morning after tumbling earlier in the week. The initial sell-off was triggered by SoftBank Group booking a 597.2 billion yen, or $3.7 billion, loss tied to altered power-equipment procurement strategies for its planned artificial intelligence data center facilities in the United States.

SoftBank booked the charge after its Silver Bands 7 unit shifted its equipment plans, which include the PORTS-Pike Technology Campus in Ohio. The $3.7 billion charge encompasses $2.9 billion in non-refundable advance payments alongside $0.9 billion for contract alterations and settlements. Although SoftBank had reserved turbines from suppliers including GE Vernova for an associated 9.2 gigawatt natural gas facility, SoftBank stated that the Ohio project remains on track under contract revisions.

Addressing the market reaction, GE Vernova reported to CNBC that SoftBank's disclosure carries no positive or negative financial impact on its operations. The company treats deposits and reservation fees as non-refundable. Furthermore, JPMorgan analysts noted that any delayed or canceled manufacturing slots could be redirected to other waiting power-generation customers.

The broader operational scale of GE Vernova provided context for investors following the news. At the close of the third quarter, the company maintained an overall backlog of $197 billion and held 122 gigawatts of gas power backlog and slot reservations. Management targets at least 130 gigawatts in gas equipment backlog and reservations by the end of the year, expecting to sell almost all gas turbine manufacturing capacity through 2030 by late 2026.

Separately, GE Vernova revealed a $34.5 million expansion at its Shreveport, Louisiana transformer plant. The project will add manufacturing machinery and infrastructure to boost transformer output for industrial and clean-energy customers, with full production capacity slated for 2028. The initiative is supported by a $300,000 performance-based infrastructure grant from Louisiana.