GE Vernova (GEV)

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not vested

GE Vernova Momentum Continues with Upgraded Medium-Term Targets

GE Vernova (GEV US, Balanced) saw its share price continue to rise this week, driven by a well-received investor update overnight.

Management doubled the quarterly dividend to USD 0.50 per share from USD 0.25 and disclosed that the Board has raised the share repurchase authorization to USD 10 billion from USD 6 billion, with USD 3.3 billion already spent as of December 3, 2025.

The company also raised its 2028 revenue outlook to USD 52 billion with a 20% adjusted EBITDA margin, up from USD 45 billion and 14%, and guided to at least USD 22 billion of cumulative free cash flow from 2025 to 2028 after accounting for some USD 10 billion of capex and R&D spending.

Order growth remains robust across both gas turbines and electrification, with total backlog expected to grow to ~USD 200bn by 2028.

Key risks include the need to now deliver on these medium-term targets, as well as any potential regulatory changes around energy policies.

Having said that, we continue to be positive on GE Vernova as a quality play on AI-driven power demand, with a strong multi-year earnings and cash generation trajectory.

Source: UOBKH