GE Vernova Doubles Dividend and Lifts Outlook as Energy Demand Boosts Growth

Core Insights - GE Vernova has significantly raised its multi-year financial outlook, anticipating accelerated growth, improved margins, and enhanced shareholder returns due to increasing global demand for electrification and cleaner power [1] Financial Projections - The company now projects $52 billion in revenue and a 20% adjusted EBITDA margin by 2028, an increase from previous targets of $45 billion and 14% [2] - GE Vernova expects to generate at least $22 billion of cumulative free cash flow from 2025 to 2028, up from prior guidance of $14 billion, while maintaining an investment-grade balance sheet [4] Shareholder Returns - The board has doubled the quarterly dividend to $0.50 per share, payable in the first quarter of 2026, and expanded its share repurchase authorization to $10 billion from $6 billion [3] Business Segments Performance - The Power and Electrification divisions are driving the uplift in projections, with both expected to achieve segment EBITDA margins of 22% by 2028, up from 16% previously [6] - The Electrification segment is forecasted to double its backlog to $60 billion by 2028, benefiting from grid modernization and digital infrastructure upgrades [6] Future Strategies - Beyond 2028, GE Vernova plans to enhance profitability through recurring revenues in gas power services and targeted investments in AI, robotics, and automation [8] - The company is advancing breakthrough energy technologies, including small modular nuclear reactors and carbon capture solutions [8] Challenges - The Wind business is expected to continue facing losses through 2026, but a recovery to a 6% EBITDA margin is anticipated by 2028 due to operational efficiency and improved pricing [7]