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    GE Vernova (GEV) Is Up 6.4% After Doubling Dividend And Expanding Buybacks And M&A Plans

    Simply Wall St·12/13/2025 18:19:25
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    • Earlier this week, GE Vernova held its 2025 Investor Update, raising its 2026 and 2028 revenue and EBITDA outlook, doubling its quarterly dividend to US$0.50 per share from US$0.25, expanding its share repurchase authorization to US$10.00 billion, and outlining plans to fund the US$5.30 billion Prolec GE acquisition with a mix of cash and debt while pursuing further vertical-integration deals.
    • The company’s upgraded long-term guidance, growing backlog tied to AI-driven power demand and electrification, and renewed focus on inorganic growth signal a shift toward combining higher growth ambitions with larger, more predictable cash returns to shareholders.
    • We’ll now examine how the doubled dividend, larger buyback, and Prolec acquisition plans could reshape GE Vernova’s investment narrative.

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    GE Vernova Investment Narrative Recap

    To own GE Vernova, you need to believe its mix of gas power, grid electrification, and wind can translate AI and electrification demand into steadily improving earnings and cash generation. The latest Investor Update strengthens that case in the near term, with higher 2026 and 2028 guidance and a growing backlog supporting the key catalyst of execution on large infrastructure projects. The biggest near term risk remains project and pricing pressure in Electrification and Wind; this news does not remove that.

    Among the new announcements, the US$0.50 quarterly dividend stands out because it links GE Vernova’s upgraded outlook directly to higher, recurring cash returns. For investors focused on near term catalysts, that higher payout, alongside increased buybacks, ties the growth narrative to capital deployment discipline. It also raises the stakes if tariffs, project delays, or wind losses weigh on free cash flow in coming years.

    Yet investors should be aware that if tariffs stay elevated and large projects slip...

    Read the full narrative on GE Vernova (it's free!)

    GE Vernova's narrative projects $48.0 billion revenue and $5.8 billion earnings by 2028. This requires 9.5% yearly revenue growth and a roughly $4.6 billion earnings increase from $1.2 billion today.

    Uncover how GE Vernova's forecasts yield a $681.43 fair value, in line with its current price.

    Exploring Other Perspectives

    GEV 1-Year Stock Price Chart
    GEV 1-Year Stock Price Chart

    Seventeen fair value estimates from the Simply Wall St Community span about US$360 to US$927 per share, underscoring how far apart views can be. Against that spread, the recent guidance hike and enlarged backlog catalyst invite you to weigh how much project and wind segment risk you think the business can absorb.

    Explore 17 other fair value estimates on GE Vernova - why the stock might be worth as much as 38% more than the current price!

    Build Your Own GE Vernova Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your GE Vernova research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free GE Vernova research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GE Vernova's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.