GE Vernova Stock Surges on Big Guidance Raise, Doubling of Dividend, and Increased Stock Buyback Authorization

Core Viewpoint - GE Vernova's stock surged 5.9% in after-hours trading following the announcement of increased free cash flow outlook for 2025, a doubling of its dividend, and an increase in share buyback authorization [2][6]. Financial Guidance - For 2025, GE Vernova reaffirmed revenue guidance of $36 billion to $37 billion and adjusted EBITDA margin guidance of 8% to 9%, while raising its free cash flow outlook to $3.5 billion to $4 billion [5][6]. - The company provided 2026 guidance with revenue expected to be $41 billion to $42 billion and adjusted EBITDA margin of 11% to 13% [6]. - By 2028, revenue is projected to reach $52 billion with a low double-digit percentage organic growth, and adjusted EBITDA margin is expected to increase to 20% [6]. Dividend and Share Buyback - The board of directors declared a quarterly cash dividend of $0.50 per share, doubling the previous dividend of $0.25, payable on February 2, 2026 [8][10]. - The share repurchase authorization was increased to $10 billion from the previous $6 billion, with $3.3 billion already spent as of December 3, leaving $6.7 billion available for future buybacks [10]. Strategic Acquisition - GE Vernova plans to acquire the remaining 50% stake in Prolec GE for $5.3 billion, which is expected to enhance earnings and accelerate growth in its electrification segment, driven by the demand for grid upgrades to support AI data centers [7][6]. Market Position - GE Vernova operates in three segments: power, wind, and electrification, and was formed in April 2024 after General Electric's split into three separate companies [3]. - The company has a market capitalization of $170 billion, with a current stock price of $625.30 [8].