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% year-over-year), with strong performance and margin expansion across all segments.

• Full-year 2024 orders reached $44.1B, revenue $34.9B, and backlog grew to $119B, with significant cash generation and margin improvement.

• Nearly doubled cash balance to over $8B since the spin, driven by strong free cash flow and portfolio actions.

• Focused on electrification, decarbonization, and grid modernization, with investments in carbon capture and small modular nuclear reactors.

• Raised multi-year financial outlook and capital allocation strategy in December, positioning for future growth.

Financial highlights

• Adjusted EBITDA margin reached 10.2% in Q4 2024, with full-year adjusted EBITDA doubling to $2.0B (margin 5.8%), and margins expanding nearly 300–440 basis points year-over-year.

• Free cash flow improved by $1.3B year-over-year to $1.7B for 2024, with free cash flow conversion at 109%.

• Q4 orders rose 22% year-over-year to $13.2B; equipment orders up 44%, driven by electrification and power.

• Revenue increased 9% year-over-year in Q4, with double-digit growth in wind and electrification equipment.

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

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 mid-single digit organic revenue growth and 13–14% EBITDA margins in 2025.

• Electrification segment anticipates mid to high teens organic revenue growth and 11–13% EBITDA margins.

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