GE Vernova now expects to achieve an adjusted EBITDA margin of 14% in 2028, up from the previous forecast of 10%.
The move comes as GE Vernova expects its wind division to approach profitability with nearly 50% segment EBITDA improvement in 2024.
GE Vernova chief executive Scott Strazik (pictured) said: “Robust demand for our technologies and services, along with better execution through our lean culture, is driving improved financial results.
“We are driving growth and innovation with US$9bn in cumulative capex and R&D investments planned through 2028, including an approximately 20% increase in R&D spend expected in 2025.
“With growing revenue, margins, and free cash flow, we are building on our strong foundation and deploying a disciplined capital allocation strategy for shareholder value creation.”
GE Vernova chief financial officer Ken Parks added: “We are executing our financial strategy, and we now expect to generate at least US$14bn in cumulative free cash flow by 2028.
“Our large and growing backlog, with healthy margins from services and better equipment pricing, is fueling our trajectory as we raise our 2025 guidance and outlook by 2028.
“We remain committed to maintaining an investment grade balance sheet as we make organic investments, pursue targeted M&A, and return at least one third of cash generation to shareholders through dividends and share repurchases.”