Munro Climate Change Leaders Fund on GE Vernova Inc.
Thesis
GE Vernova combines gas-turbine services with electrical grid equipment and other clean-power technologies. The market worried that gas-turbine orders had peaked as AI data-centre-related shares sold off, but Munro points to the long and profitable aftermarket service stream supporting turbine earnings. Its electrification operation has also doubled year-to-date orders and expanded margins by more than five percentage points. The fund sees grid investment and electrification as significant longer-term growth drivers.
“its electrification business, with year-to-date orders doubling and margins up over 5 percentage points.”
Key risks
- Gas turbine orders potentially reaching a cyclical peak
- Weakening sentiment or delayed spending on AI data-centre power infrastructure
- Rising bond yields depressing valuations of power and electrification stocks
- Pre-election political rhetoric affecting data-centre construction