GE Vernova (GEV) Q3 2024 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in orders and revenue, led by Power and Electrification, with margin expansion across Power, Electrification, and Onshore Wind, despite significant Offshore Wind losses.

• Delivered substantial free cash flow, increasing the cash balance to $7.4 billion, and reaffirmed 2024 guidance, highlighting robust working capital management.

• Completed spin-off from GE, becoming an independent public company listed on the NYSE.

• Published first Sustainability Report, advancing a four-pillar framework: Electrify, Conserve, Decarbonize, and Thrive.

• Major events included a $0.9 billion pre-tax gain from the sale of part of Steam Power's nuclear activities and a $306 million arbitration refund.

Financial highlights

• Q3 2024 orders rose 17% to $9.4B; revenue up 10% to $8.9B year-over-year, with adjusted EBITDA margin at 2.7%.

• Free cash flow increased by $0.9B year-over-year, reaching $1.0B in Q3 2024; cash from operating activities for the nine months was $1.7B.

• Net loss narrowed to $(99)M in Q3 2024 from $(185)M in Q3 2023; YTD net income improved by $1.8B.

• Backlog (RPO) at September 30, 2024 was $117.7B, up 5% year-over-year.

• Gross margin for Q3 was 12.4%; for the nine months, 16.3% (up from 13.4% in 2023).

Outlook and guidance

• 2024 revenue expected at the higher end of $34–$35B, adjusted EBITDA margin of 5%–7%, and free cash flow of $1.3–$1.7B, all trending higher.

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

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

• Wind: flat organic revenue, nearly 50% segment EBITDA improvement, approaching profitability.

• Management expects continued robust demand in Electrification and Power, with gas power seen as critical for grid stability and energy security.