GE Vernova (GEV) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 orders of $13.2B (+22% organically) and revenue of $10.6B (+9% organically), with strong performance across all segments, especially Power and Electrification.

• Ended 2024 with $44.1B in orders (+7% organically), $34.9B in revenue (+5%), and $119B in backlog, reflecting robust demand and positioning for future growth.

• Free cash flow improved by $1.3B year-over-year to $1.7B, and cash balance nearly doubled to $8.2B at year-end.

• Initiated a shareholder return program, including a $1 per share annualized dividend, $0.25/share quarterly dividend, and a $6B share repurchase authorization.

• Raised multi-year financial outlook and capital allocation strategy in December, supporting continued growth.

Financial highlights

• Adjusted EBITDA margin reached 10.2% in Q4 2024, with full-year adjusted EBITDA of $2.0B (5.8% margin), up 85% year-over-year.

• Q4 net income was $484M (4.6% margin), and full-year net income was $1.6B (4.5% margin), a $2.0B improvement year-over-year.

• Equipment orders grew 44% in Q4, with Electrification and Power leading growth.

• Free cash flow for 2024 was $1.7B, up from $442M in 2023, with a 109% conversion rate.

• Backlog margin increased by over $6B since 2022, with equipment backlog up over 50% in two years to $43B.

Outlook and guidance

• Reaffirmed 2025 guidance: revenue of $36–$37B (mid-single digit growth), high single-digit adjusted EBITDA margin, and free cash flow of $2.0–$2.5B.

• Power segment expected to deliver 13–14% EBITDA margins in 2025; Electrification to achieve 11–13% EBITDA margins with mid to high teens revenue growth.

• Wind revenue expected to decline mid-single digits in 2025, with EBITDA losses improving to $200–$400M.

• Positive free cash flow anticipated in all quarters of 2025, with continued margin expansion.