GE Vernova Soars After AI Spurs Higher Dividend and Buybacks

Core Viewpoint - GE Vernova Inc. has experienced a significant surge in its stock price, reflecting strong demand for natural gas-fired power and robust financial performance, including a doubled dividend and increased share buybacks [1][4]. Financial Performance - The company’s shares rose 16% to $723.09 following the announcement of a doubled quarterly dividend to 50 cents and an increase in share repurchase authorization from $6 billion to $10 billion [1][4]. - Future earnings projections have been raised from $45 billion to $52 billion beyond 2028, with adjusted EBITDA margins expected to increase from 14% to 20% [2]. Market Outlook - GE Vernova anticipates growing its total backlog from $135 billion to approximately $200 billion by the end of 2028, with the electrification segment backlog expected to double from $30 billion to $60 billion [4]. - The company forecasts stronger profit margins in its power and electrification businesses, with expected adjusted EBITDA margins of 22% each by 2028, while the wind segment is projected to yield a lower margin of 6% [5]. Analyst Recommendations - Oppenheimer & Co. upgraded GE Vernova's recommendation to a buy and raised its price target to $855, citing the company's expertise in high and medium voltage technologies as a key factor for market share gains [3].