GE Vernova $GEV ( ▲ 3.07% ) is rallying after the company raised its long-term outlook and announced a larger payout for shareholders. At its investor day, the power equipment maker said it now expects $52 billion in revenue and a 20% adjusted EBITDA margin by 2028. Last year’s targets were $45 billion and 14 percent, so the company is signaling far stronger momentum as AI and data center growth push electricity demand higher.
A bigger backlog is helping. GE Vernova expects its total backlog to rise from $135 billion today to nearly $200 billion by 2028. The electrification segment alone is projected to double to roughly $60 billion as service margins improve and equipment pricing strengthens.
Investors are getting more cash as well. GE Vernova doubled its quarterly dividend to 50 cents and expanded its share repurchase authorization from $6 billion to $10 billion. CEO Scott Strazik said concerns about an AI energy bubble are overstated, noting that hyperscalers are driving significant demand but are not the only source of growth. The company also announced a partnership with the US government to secure supplies of yttrium, a material now harder to obtain due to China’s export limits.
With today’s jump, GE Vernova shares are up more than 105 percent for the year.