GE Vernova CEO Sees Order Backlog Stretching Into 2028

Ladies and gentlemen, buckle up! We're diving into the electrifying world of GE Vernova, where the future is bright, and the order backlog is even brighter. GE Vernova CEO Scott Strazik just dropped a bombshell: the company's order backlog of $119 billion is set to fuel growth well into 2028. This is a game-changer, folks! Let's break it down.

First things first, let's talk about that backlog. $119 billion is not a small number. It's a massive, jaw-dropping figure that shows GE Vernova is in high demand. This backlog is the lifeblood of the company's financial projections and strategic planning. It's the rocket fuel that will propel GE Vernova to new heights over the next five years.

Now, let's talk about the Gas Power business. This segment is on fire, driven by the insatiable demand from data centers associated with artificial intelligence. AI is the next big thing, and GE Vernova is right at the forefront. The company is investing heavily to increase Gas Power capacity, ensuring it can meet the growing needs of its customers. This is a no-brainer, folks! The demand for data centers and AI technologies is only going to grow, and GE Vernova is positioning itself to capitalize on this trend.

But it's not just about the Gas Power business. GE Vernova is also investing heavily in R&D and AI programs. The company plans to raise its overall R&D spend by approximately 20 percent in 2025 and double its internal investment into artificial intelligence programs. This is a strategic move that aligns perfectly with the company's long-term goals of decarbonizing the energy system and providing sustainable infrastructure. By nurturing state-of-the-art technologies and investing in innovation, GE Vernova is paving the way for a prosperous and sustainable future.



Now, let's talk about the financial outlook. GE Vernova expects to generate at least $14 billion in cumulative free cash flow from 2025 to 2028, with a free cash flow conversion of approximately 100% by 2028. This is a staggering figure that shows the company is on a trajectory for massive growth. The backlog, with its healthy margins, is a key driver of this financial trajectory. The company is also committed to returning at least one third of cash generation to shareholders through dividends and share repurchases. This is a win-win situation for investors, folks!

In conclusion, GE Vernova is a company on the move. With a massive order backlog, a strong Gas Power business, and a commitment to innovation and sustainability, GE Vernova is poised for growth. The company's financial outlook is bright, and its strategic investments in R&D and AI programs are setting the stage for a prosperous and sustainable future. So, do yourself a favor and get in on the action. This is a no-brainer, folks! GE Vernova is the next big thing in the energy sector, and you don't want to miss out.