GE Vernova (GEV) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with margin expansion, significant free cash flow improvement, and raised full-year 2024 guidance.

• Orders reached $11.8B, exceeding revenue by 1.4x, with robust backlog growth in Power, Onshore Wind, and Electrification.

• Net income was $1.3B, up $1.4B year-over-year, with a net income margin of 15.6%.

• Strategy execution focused on operational improvement, cost productivity, and Lean initiatives.

• Well-positioned to capitalize on energy transition trends, with increasing demand for power generation and decarbonization technologies.

Financial highlights

• Q2 2024 revenue was $8.2B, up 1% year-over-year; adjusted EBITDA was $524M, margin 6.4%, up 320 bps; free cash flow was $821M, up $1.3B year-over-year.

• Net income: $1.3B (vs. -$149M Q2 2023); diluted EPS: $4.65 (vs. -$0.55 Q2 2023).

• Orders reached nearly $12B, with a $115B backlog; Electrification backlog up 35% year-over-year.

• Services revenue grew 7% (9% organically); equipment revenue declined 4% organically.

• Cash balance at quarter-end was $5.8B.

Outlook and guidance

• 2024 revenue expected at the high end of $34–$35B; adjusted EBITDA margin guidance raised to 5–7%.

• Free cash flow guidance increased to $1.3–$1.7B, reflecting strong cash performance and a non-recurring arbitration refund.

• Power: mid-single-digit organic revenue growth, 150–200 bps EBITDA margin expansion.

• Wind: flat organic revenue growth, approaching profitability in 2024 and expected to be profitable in 2025.

• Electrification: mid-to-high teens organic revenue growth, high single-digit EBITDA margin.