GE Vernova Raises Guidance on Strong Power and Grid Demand

GE Vernova has concluded its 2025 fiscal year with a significant leap in growth, prompting management to lift its outlook for the current period. Soaring electricity requirements from data centers and major industrial projects are filling the company's order books. Investors are seeing direct benefits through a doubled quarterly dividend and a substantially expanded share repurchase program.

Citing powerful cash flow generation, GE Vernova's board has declared a quarterly dividend of $0.50 per share, a 100% increase, payable as of today, February 2. Furthermore, the authorization for stock buybacks has been dramatically raised from $6 billion to $10 billion. This move underscores confidence in the firm's financial trajectory and commitment to returning capital.

Conventional Power and Grid Infrastructure Fuel Growth

The company's Power segment emerged as a primary growth engine in Q4 2025, with orders for gas turbines tripling year-over-year. This surge is largely attributed to utilities expanding infrastructure to support power-hungry data centers. Management now forecasts organic revenue growth of 16% to 18% for this division in 2026.

Simultaneously, the Electrification segment posted record order intake, fueled by global demand for grid solutions and storage systems. The recently finalized acquisition of Prolec GE is expected to bolster this unit further, projected to contribute approximately $3 billion to its revenue in 2026.

Wind Segment Continues to Face Headwinds

In contrast to other operations, the Wind business remains a challenge. It reported an EBITDA loss nearing $600 million for 2025. Operational difficulties have been exacerbated by government-imposed construction halts on U.S. offshore projects, including Vineyard Wind.

Should investors sell immediately? Or is it worth buying Ge Vernova?

While the onshore business in the U.S. has shown resilience with new orders, GE Vernova anticipates another organic revenue decline in the low double-digit percentage range for the entire Wind segment in 2026. The division is forecast to remain a drag, with an expected EBITDA loss of about $400 million for the current year. A key question for investors is whether robust growth in conventional energy can permanently offset these wind power deficits.

Revised Targets and Key Financial Metrics

The overall positive performance is reflected in upgraded corporate goals. The order backlog stands at $150 billion, a 25% increase from the prior year.

Key Financial Data and Projections:
* 2025 Free Cash Flow: $3.7 billion
* 2026 Revenue Guidance: $44 to $45 billion
* 2026 Adjusted EBITDA Margin Target: 11% to 13%
* 2026 Free Cash Flow Target: $5 to $5.5 billion
* 2028 Long-Term Goal: Revenue of at least $56 billion with a targeted adjusted EBITDA margin of 20%

Market sentiment appears aligned with this strengthened outlook. The stock reached a new 52-week high of $726.37 this past Friday, marking an impressive 12-month gain of approximately 106%.