GE Vernova (GEV.US) begins a new phase of value creation: doubling dividends, expanding repurchases, and improving profit guidance

The Zhitong Finance App learned that GE Vernova (GEV.US) shares rose nearly 6% in Tuesday night trading after the company announced that it would double dividends, increase share repurchase authorizations, and raise profit expectations. The turbine maker raised its quarterly dividend to $0.50 per share and raised the share repurchase authorization from $6 billion to $10 billion, mainly due to a large and growing backlog of orders, strong profit margins, and better hiring prices.

GE Vernova also released preliminary results guidance for 2026, with projected revenue of $41 billion to $42 billion and free cash flow of $4.5 billion to $5 billion, while raising this year's free cash flow forecast from $3 billion to $3.5 billion to $3.5 billion to $3.5 billion, and maintaining revenue expectations of $36 billion to $37 billion, trending towards the top of the range.

The company said it expects organic revenue from its electricity business to grow 16%-18% and organic revenue from its electrification business to 20% by 2026.

Looking beyond 2028, the company predicts that by 2028, its revenue will reach $52 billion, and the compound annual growth rate will reach a low double digit rate, higher than the previous forecast of $45 billion (high single-digit growth rate), while increasing its adjusted EBITDA margin for the period from 14% to 20%.

Scott Strazik, CEO of GE Vernova, said: “The company is in the early stages of creating significant value, and the financial situation will be more robust in the future.”