GE Vernova Boosts Shareholder Returns With Dividend Hike, Expanded Buyback, and Raised FCF Outlook

GE Vernova (GEV) has signaled strong confidence in its financial trajectory by substantially increasing capital returns to investors. The company’s Board of Directors has doubled the quarterly dividend to $0.50 per share—up from $0.25—with the first payment scheduled for February 2, 2026. Additionally, the authorization for share repurchases has been expanded to $10 billion from the previous $6 billion ceiling, underscoring management’s commitment to enhancing shareholder value.

Enhanced Financial Guidance Reflects Operational Momentum

The energy equipment and services company has raised its free cash flow (FCFF) guidance for 2025 to the range of $3.5 billion to $4.0 billion, representing a material increase from the prior projection of $3.0 billion to $3.5 billion. This upward revision demonstrates improving cash generation capabilities across the business. Meanwhile, revenue expectations remain anchored in the $36 billion to $37 billion range, with the company trending toward the upper end. The adjusted EBITDA margin is projected at 8%-9%, maintaining operational efficiency targets.

Multi-Year Growth Acceleration Expected

Looking further ahead, GE Vernova has refreshed its long-term outlook through 2028, painting an increasingly optimistic picture. For 2026, the company anticipates revenue of $41 billion to $42 billion with an adjusted EBITDA margin of 11%-13%, while free cash flow generation is expected to accelerate to $4.5 billion to $5.0 billion.

By 2028, GE Vernova projects reaching $52 billion in revenue—a substantial leap from its previous $45 billion estimate. This reflects a shift toward low-double-digit organic growth rather than the originally forecast high-single-digit expansion. The EBITDA margin target has also been raised to 20%, compared to the prior 14% outlook. Cumulatively, the company now expects to generate $22 billion or more in free cash flow between 2025 and 2028, versus the earlier guidance of $14 billion or more.

Strategic Drivers Positioning Long-Term Value Creation

GE Vernova attributes this enhanced outlook to multiple growth catalysts. The company’s equipment and services backlog is anticipated to reach approximately $200 billion by the end of 2028, providing substantial revenue visibility. A growing stream of higher-margin, recurring Gas Power services revenue is expected to materialize beginning in the 2030s, further bolstering profitability.

Innovation initiatives are also gaining momentum. The company is substantially increasing investments in artificial intelligence, robotics, and automation to optimize operational performance. Beyond efficiency gains, GE Vernova is advancing breakthrough energy technologies including small modular nuclear reactors, carbon capture solutions, solid oxide fuel cells, and grid modernization platforms designed to support data center infrastructure and power grid resilience.

These initiatives position GE Vernova to deliver “substantially higher returns” beyond 2028, the company said, supported by both its growing contracted revenue base and expanding portfolio of next-generation energy solutions.