GE Vernova CEO Scott Strazik has met with OpenAI chief Sam Altman several times in recent weeks. Strazik described the relationship as "continuing to evolve" in remarks following the company's third-quarter earnings report.
The discussions centered on OpenAI's growing electricity requirements for artificial intelligence operations. Strazik said the talks focused on power generation and the electrical equipment needed to support it.
GE Vernova has secured agreements with major technology firms including OpenAI, Oracle, Nvidia, Google, and XAI. The company recorded $900 million in electrical equipment orders from hyperscalers through the first three quarters of 2025. This compares to $600 million for all of 2024.
Strazik characterized the company's work with these clients as "co-creation," developing integrated solutions from power generation to server racks.
Following its spin-off from GE in March 2024, GE Vernova's stock has delivered over 350% returns to shareholders. However, shares declined after the third-quarter results were released.
The company reported a 55% increase in power equipment orders, exceeding expectations. But it did not raise its full-year 2025 forecast, which disappointed some investors.
Strazik noted that onshore wind business remains soft. Revenue in that segment could decline 10% to 15% next year if order weakness continues, with margins potentially falling from high single digits to mid-single digits.
Analysts maintain a positive outlook, with an average price target of $786 per share, approximately 22% above current levels.
Strazik stated that GE Vernova has essentially sold out of power generation equipment through 2028. The company faces capacity challenges while managing tariff policies that could cost $300 million to $400 million this year.
GE Vernova recently acquired full ownership of transformer manufacturer Prolec GE. Transformers are crucial for increasing voltage to transmit electricity more efficiently.
The company's board approved doubling the annual dividend to $2 per share last month. The share repurchase authorization was increased from $6 billion to $10 billion. Year-to-date, GE Vernova has repurchased 8 million shares for approximately $2.2 billion at an average price of $357.
Between now and 2028, the company expects to generate at least $22 billion in cumulative free cash flow, up from a previous outlook of $14 billion. This increase is driven by $6 billion more in adjusted EBITDA.
GE Vernova is targeting 20% EBITDA margins by 2028, with Power and Electrification segments reaching 22% and Wind at 6%.