GE Vernova soars after lifting outlook and doubling dividends amid AI-powered electricity boom
GE Vernova is up more than 10% as of 6:05 a.m. ET, after the maker of power generation equipment raised its multiyear earnings forecast and boosted shareholder returns.
At Tuesday’s investor day, the company said it now expects $52 billion in revenue and a 20% adjusted EBITDA margin by 2028, up from the $45 billion and 14% that it projected last December, as electricity demand surges on the back of the AI and data center boom.
CFO Ken Parks said momentum is being driven by a “large and growing backlog, with healthy margins from services and better equipment pricing.” GE Vernova expects its total backlog to grow from $135 billion today to ~$200 billion by 2028, including doubling its electrification backlog to $60 billion.
The company also doubled its quarterly dividend to $0.50 per share, while expanding its share repurchase authorization from $6 billion to $10 billion.
CEO Scott Strazik dismissed concerns of an AI-driven energy bubble, saying AI “isn’t the only driver” for the company, adding that demand from hyperscalers is growing in magnitude. Separately, GE Vernova also said it’s collaborating with the US government to shore up supplies of rare earth material yttrium, now in short supply amid China’s export curbs.
With this morning’s jump, shares are up more than 105% for the year so far.
The company also doubled its quarterly dividend to $0.50 per share, while expanding its share repurchase authorization from $6 billion to $10 billion.
CEO Scott Strazik dismissed concerns of an AI-driven energy bubble, saying AI “isn’t the only driver” for the company, adding that demand from hyperscalers is growing in magnitude. Separately, GE Vernova also said it’s collaborating with the US government to shore up supplies of rare earth material yttrium, now in short supply amid China’s export curbs.
With this morning’s jump, shares are up more than 105% for the year so far.
