Q3 2024 Ge Vernova Inc Earnings Call Transcript
Key Points
- GE Vernova Inc (GEV) reported strong double-digit orders and revenue growth in its Power segment, with a 34% increase in power orders driven by substantial equipment demand.
- The Electrification segment achieved a 24% revenue increase, driven by stronger volume and price, and reached double-digit EBITDA margins for the first time.
- GE Vernova Inc (GEV) added 29 gigawatts of new capacity to the grid globally in 2023, with a significant portion in developing markets, contributing to a reduction in carbon intensity.
- The company generated substantial free cash flow, increasing its cash balance from $5.8 billion in Q2 to $7.4 billion in Q3.
- GE Vernova Inc (GEV) reaffirmed its full-year 2024 guidance, expecting revenue towards the high end of $34 billion to $35 billion and free cash flow trending towards the higher end of the range.
- The Offshore Wind segment faced significant challenges, including a substantial loss due to manufacturing deviations in turbine blades, impacting financial results.
- Despite improvements, the Wind segment experienced a 19% decline in orders due to lower Onshore equipment orders outside of North America.
- The company incurred additional contract losses at Offshore Wind, primarily due to execution delays and blade issues, resulting in a $700 million charge.
- GE Vernova Inc (GEV) experienced a fatality at an Onshore Wind site in Sweden, highlighting ongoing safety challenges.
- The timing of an inflection for Onshore Wind orders remains uncertain, with the company cautious about the market dynamics in North America.
Good day, ladies and gentlemen, and welcome to GE Vernova's third quarter 2024 earnings conference call. (Operator Instructions) My name is Liz, and I'll be your conference coordinator today.
(Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the program over to your host for today's conference, Michael Lapides, Vice President of Investor Relations. Please proceed.
Thank you. Welcome to GE Vernova's third quarter 2024 earnings call. I'm joined today by our CEO, Scott Strazik and CFO, Ken Parks.
Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's Form 10-Q, press release, and in the presentation slides, all of which are available on our website.
Please note that year-over-year commentary or variances on orders, revenue, adjusted EBITDA, and margin discussed during our prepared remarks are on an organic basis. We will
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