Scott Strazik on CNBC's Squawk on the Street | GE Vernova

Well, it's been a year. So, a lot of progress in the last 12 months. Our growth is clearly accelerating. Our margins are expanding. What we talked to our investors about yesterday is this is a business today that's $37 billion of revenue, 8.5% EBITDA margins. By 2028, that's $52 billion of revenue at 20% EBITDA margins.

Well, I think you have to first take a step back and just say the world needs a lot more energy than it has today. And it needs a much larger proportion of that energy to be electric power. 20% of the world's energy today is electric power. That likely doubles. So, we're going to an expanding profit pool. Now, operationally, yes, we're making a lot of progress in our factories. We're applying lean. We're investing in robotics and AI and seeing a lot of productivity and that's driving the expanded margins. We also see a backlog that today is $135 billion that we have high confidence will grow to $200 billion by 2028.

We are a unique platform that provides solutions to these customers that few companies can. When you think about AI factories and the load volatility that's associated, our ability to provide both the power generation equipment and the electrical equipment powered to rack. We're one of the few providers that can lean into that solution. When you provide the right solutions the customers need, it provides opportunity for you to create value and that value then is represented in increasing price today.

It's a healthy mix of price, volume, and productivity. We see all three driving margin expansion of 20%. And by no means is 20% where we stop. We talked yesterday about the fact that we see real opportunity to continue to expand margins beyond there. And if I just give a little bit of perspective of our power business, it's $19 billion of revenue. Today, only $12 billion of that is services. By 2035, the services revenue on its own will be $22 billion. So it'll be larger than the whole power segment's revenue. And of course, the services revenue and the razor blade model is where a lot of the margin is. So we have a lot of margin expansion into the next decade here.

No, we went to 2028, framed up where our backlog is going to go, talked about that services growth, also talked about things like small modular reactor in the next decade, how that can play a role. First things first, let's deliver on this framework between now and 2028, but we'll be talking about the 2030s soon enough.

Well, it is going to be more expensive than unabated gas. That's certainly true. That said, we're working really hard to build a nuclear industry in the US. This is an area that clearly is the administration's focus. We're working very closely with Secretary Wright and Secretary Lutnik. We do expect we'll build new nuclear in the US. One of our customers, TVA, just received a $400 million grant last week to advance their project in Clinch River. I would expect us to get approval for commissioning of our first project in the US next year. So, this is happening now. Is it going to happen at the scale of new gas additions? No. Gas is going to be the lion's share of the incremental capacity because it's so well suited operating parameters for what the world needs right now. And we have very inexpensive gas in the US. And you want to apply technology where the resources are most economically competitive.