Key Moments
- William Blair identified three U.S. energy companies as its top sector picks heading into 2026. Natural gas-focused businesses are seen as primary beneficiaries of rising power demand.
- Artificial intelligence-related electricity needs, a renewed focus on conventional generation, and policy shifts away from renewables provide major tailwinds for these companies.
- GE Vernova, Kodiak Gas Services, Inc, and ICF International, Inc were highlighted for their exposure to power infrastructure, gas compression, and commercial energy consulting, respectively.
William Blair’s 2026 Energy Outlook
William Blair analysts selected three leading U.S. energy stocks as their preferred ideas for 2026. They emphasized that natural gas producers and infrastructure operators will benefit most from surging electricity consumption.
Specifically, fast-growing power needs linked to the artificial intelligence buildout on Wall Street are driving the sector. Additionally, broad energy deregulation under the Trump administration and a reduced emphasis on renewables support traditional energy businesses.
The brokerage tied its 2026 picks to several structural themes. These include expanding AI-related power requirements, a revival of nuclear energy, and heightened demand for battery energy storage systems. Furthermore, William Blair anticipates that oil prices will reach a low point next year.
The firm’s three preferred names are GE Vernova, Kodiak Gas Services, Inc, and ICF International, Inc.
Top 3 U.S. Energy Picks
| Company | Focus Area | Key 2026-Related Themes |
|---|---|---|
| GE Vernova | Power infrastructure – gas turbines, nuclear SMRs, grid equipment | AI-driven baseload demand, higher pricing, long-term service contracts |
| Kodiak Gas Services, Inc | Natural gas compression and temporary power | Gas-rich Permian production, delayed grid connections, shareholder returns |
| ICF International, Inc | Government and commercial energy consulting | Shift toward commercial energy, data center grid connections, M&A |
GE Vernova: Capitalizing on AI-Driven Power Needs
William Blair described GE Vernova as a leading player in power infrastructure. It holds dominant positions in natural gas turbines, nuclear small modular reactors (SMRs), and key grid components such as transformers and switchgears.
Demand has been particularly strong from data centers. These facilities need stable baseload generation that renewables alone cannot reliably supply. As a result, natural gas turbine demand has surged, and the company’s turbines are effectively sold out through 2028. GE Vernova booked 18 GW of orders in the fourth quarter alone, surpassing its capacity for 2026.
The company has steadily raised turbine prices to $2,500/kW, with further upside expected. William Blair noted that these higher prices will begin impacting financial results in mid-2026. A more pronounced effect is expected in 2027.
Each turbine sale includes a service agreement, which carries higher pricing. This combination of equipment and service revenue is expected to drive margins well beyond 2030, indicating that GE Vernova’s growth cycle is still in its early stages.
In credit news, S&P Global Ratings upgraded GE Vernova to ‘BBB’, citing stronger profitability and a better competitive position. RBC Capital also raised its equity rating to Outperform, highlighting a robust growth outlook.
Kodiak Gas Services: Benefiting from Gas-Rich Permian Production
Kodiak Gas Services, Inc leads the compression market and is positioned to benefit from natural gas expansion in the Permian Basin. Even if oil production growth slows due to low prices, gas-heavy wells require additional compression capacity.
The company can also capitalize on temporary power opportunities across oil fields. In the Delaware Basin, grid connections can be delayed for more than five years. This delay increases demand for interim power solutions.
Kodiak’s exposure to the Permian is a core strength. The region is expected to supply roughly 50% of U.S. crude and NGL output and about 20% of produced natural gas, even under current low oil prices.
A solid balance sheet enabled Kodiak to raise its dividend by 10% this year, achieving a current yield of 5%. The company remains active in buying its own shares and recently surpassed the last sales by its long-term private equity backer.
Kodiak announced that an EQT Infrastructure affiliate will sell its remaining stake. Additionally, the company will dual list its common stock on NYSE Texas while keeping its primary listing on the NYSE.
ICF International: Transition Toward Energy Consulting
William Blair described ICF International, Inc as undervalued relative to its transition into commercial energy consulting. The firm expects the commercial segment to potentially surpass federal business within two to three years. This marks a shift from a primarily government-focused consultancy to a broader energy consulting provider.
Two drivers remain underrecognized. First, hyperscale data centers are tying power-intensive facilities into the grid, increasing pressure on utilities. Second, mergers, acquisitions, and organic growth push the commercial arm to roughly half of total revenue in the coming years.
With the conclusion of DOGE and typical federal spending patterns, the likelihood of further federal disruptions is low. ICF International reported third-quarter 2025 earnings and revenue slightly below analysts’ expectations.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
