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(Sharecast News) - GE Vernova shares surged to fresh record highs on Wednesday, after the power-equipment maker raised its multi-year financial targets, doubled its dividend and expanded share buybacks.
The company, spun out of General Electric last year, had become one of the strongest performers in US equities as investors bet on sustained investment in gas-fired power and grid infrastructure.
At an investor day in New York, GE Vernova lifted its 2028 revenue forecast to $52bn from $45bn and raised its adjusted EBITDA margin target to 20% from 14%.
It also projected free cash flow of $4.5bn to $5bn in 2026, ahead of its 2025 outlook, and said cumulative free cash flow from 2025 to 2028 would exceed $22bn.
The company said it expected its total backlog to grow from $135bn to around $200bn by 2028, including a doubling of its electrification order book to $60bn.
The bullish update reflects rapid growth across its power and grid units, fuelled by rising electricity consumption from AI-driven computing and expanding industrial demand.
GE Vernova said all production slots for its gas turbines were sold out through 2028 and that it expected annualised output of 20 gigawatts by mid-2026, rising to 24 GW two years later.
The power business was targeting organic revenue growth of up to 18% in 2026, while electrification revenue was forecast to expand by 20%.
To reward shareholders, the company doubled its quarterly dividend to 50cents per share and increased its share repurchase authorisation to $10bn from $6bn.
Chief Executive Scott Strazik rejected suggestions that the AI-led surge in investment represented a bubble, saying demand from large technology customers was accelerating and supported by broad-based infrastructure needs.
He added that GE Vernova was collaborating with the US government to build stockpiles of yttrium, a rare earth metal used in turbine components, as export restrictions from China tighten supply.
The company said it had sufficient inventories into next year and is pursuing potential alternatives should shortages worsen.
While GE Vernova expected losses in its wind business to persist in the near term, it forecast a return to profitability by 2028.
At 1254 ET (1754 GMT), shares in GE Vernova were up 14.28% in New York at $714.62.
Reporting by Josh White for Sharecast.com.