GE Vernova vs. NuScale Power: Which Industrials Stock Is a Better Buy in 2026?

The energy transition is creating massive demand for reliable power solutions across the globe. Investors looking for exposure to this trend often weigh GE Vernova (NYSE:GEV) against NuScale Power (NYSE:SMR).

GE Vernova provides massive infrastructure for power generation and wind energy, supporting traditional utilities and new data centers. NuScale Power focuses on next-generation small modular reactors designed for flexible, carbon-free nuclear energy. While both companies aim to electrify the future, they operate at vastly different stages of commercial maturity and financial stability.

The case for GE Vernova

GE Vernova provides the essential hardware and software for the global energy transition. The company serves a massive base of utilities and industrial players across Europe, the United States, and Asia. Recent growth is tied to the industrial stocks sector, where increasing electricity demand from data centers is driving new orders. Key commercial agreements include a power partnership with Chevron to support its energy needs. The company also recently completed the acquisition of the remaining stake in Prolec GE to strengthen its subsidiary portfolio.

In FY 2025, revenue reached nearly $38.1 billion, representing growth of approximately 8.9% over the previous year. This revenue expansion helped the company achieve a net income of close to $4.9 billion for the fiscal year. This result reflects a net margin of roughly 12.8%, which measures the percentage of revenue remaining as profit after all operating and non-operating expenses are paid. This performance marks a significant improvement over the net income reported in previous periods.

As of its December 2025 balance sheet, the current ratio was approximately 1.0x. This indicates that the company has just enough liquid assets to cover its short-term liabilities coming due within one year. The company reported a debt-to-equity ratio of 0.0x, meaning its total liabilities do not exceed its shareholder equity in terms of interest-bearing debt. Free cash flow, which is cash from operations minus capital expenditures, was nearly $3.7 billion for the year.

The case for NuScale Power

NuScale Power focuses on the design and deployment of small modular reactors to provide carbon-free energy. Its primary commercial strategy relies on an exclusive partnership with ENTRA1 for the development of its modular units. Customer concentration like this adds a layer of risk to the business since the company is heavily dependent on a single partner. The company is also working with RoPower Nuclear S.A. on a potential deployment at a power station in Romania.

During FY 2025, revenue was approximately $31.5 million, which was a decrease of about 15.0% compared to the prior fiscal year. The company reported a net loss of nearly $355.8 million for the period, reflecting the heavy costs of research and development. This led to a negative net margin of roughly 1,130.3%, showing that expenses were many times higher than the actual revenue generated. This trend highlights the early-stage nature of the company’s current business model.

Based on its December 2025 balance sheet, NuScale Power maintained a current ratio of approximately 4.3x. This suggests the company has enough liquid assets to cover its short-term obligations more than four times over, providing a temporary buffer for its operations. While it reported a debt-to-equity ratio of 0.0x, free cash flow was negative at approximately $460.1 million. This negative cash flow indicates that the company is currently spending more on operations and investments than it is bringing in.

Risk profile comparison

GE Vernova faces risks from complex global supply chains and volatility in the costs of raw materials. The company is also navigating an investigation into potential federal securities law violations that could impact its reputation or finances. Furthermore, executing large-scale projects in offshore wind and nuclear power carries significant financial risks and potential warranty costs. These operational challenges require disciplined management to maintain long-term profitability.

NuScale Power faces extreme financial instability, evidenced by a 96% revenue collapse in Q1 2026. The company is defending itself against multiple securities class action lawsuits related to its partner, ENTRA1, following the exit of Fluor Corporation as a shareholder. It also faces competition from state-sponsored entities in China and Russia that already have modular reactors in operation. These factors create a highly uncertain path toward commercial success and profitability.

Valuation comparison

GE Vernova carries a more established valuation with a measurable Forward P/E, while NuScale Power trades at a significantly higher P/S ratio despite its negative earnings.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with GE Vernova, and it's not close. NuScale Power holds an interesting position as the only small modular reactor with U.S. regulatory certification, and the long-term case for nuclear power in a world hungry for clean, reliable energy is worth taking seriously. But NuScale is effectively a pre-revenue company right now. Quarterly revenue collapsed to a fraction of what analysts expected, losses are widening, and the company has no commercial power purchase agreements in place to anchor its growth story. The regulatory certification is valuable, but a certification alone doesn't power a data center.

GE Vernova is operating at a completely different altitude. Orders more than doubled in the most recent quarter, the backlog just hit a record, and the company raised its full-year outlook on both revenue and free cash flow. Its gas turbine business is booked out for years, and electrification demand from data centers and grid modernization keeps accelerating. NuScale might matter someday, but GE Vernova is already indispensable.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and GE Vernova. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.