GE Vernova Raises Cash Flow Guidance 33% but Shares Slip
HON•GE Vernova boosted full-year free cash flow guidance by 33% to $7 billion and raised its revenue forecast to $45 billion with a 13.0% EBITDA margin, yet shares are down 1.5%. The company reports a $163 billion backlog, $400 million in wind-segment losses and 50% implied volatility ahead of its next catalyst.
1. Record Guidance Increase
On April 22 GE Vernova boosted its full-year free cash flow target to $7 billion, a 33% increase, and lifted its 2026 revenue outlook to $45 billion alongside a 13.0% adjusted EBITDA margin, reflecting strong demand in data center and electrification markets.
2. Market Reaction and Volatility
Despite the robust guidance, GE Vernova shares remain down about 1.5%, while options traders are pricing in roughly 50% implied volatility ahead of the next earnings report, signaling expectations for a significant stock move.
3. Backlog Strength and Wind Drag
The company’s $163 billion order backlog underscores long-term demand, but the wind energy segment is expected to generate $400 million in EBITDA losses this year, posing a key execution challenge for management to convert backlog into profitable cash flow.
