GE Vernova Reports Q3 Earnings: Revenue Growth but EPS Miss

GE Vernova Inc. (NYSE: GEV) experienced a dip in its share price during premarket trading after the company released its mixed results for the third quarter.

In this quarter, GE Vernova showed an impressive revenue growth of 8% from the previous year, reaching $8.913 billion. The company’s organic revenue growth was even more encouraging, at +10% year-over-year, outperforming the analyst consensus estimate of $8.783 billion.

“GE Vernova had a solid third quarter, delivering double-digit orders and continued revenue growth with strength in services across all segments, significant margin expansion in Power and Electrification, and substantial cash generation,” said CEO Scott Strazik.

During this period, total orders amounted to $9.4 billion, reflecting a 17% organic increase. This was largely influenced by a remarkable 28% growth in service orders and positive equipment sales in the Power and Electrification segments.

However, GE Vernova reported a loss per share of $0.35 for the quarter, which was an improvement compared to a loss of $0.62 a year earlier. Unfortunately, this result did not meet the expected EPS consensus of $0.32. The company’s net loss narrowed to $99 million, down from a $185 million loss in the previous year.

The Adjusted EBITDA saw a slight expansion with the margin increasing by 20 basis points to 2.7%, although it contracted 70 basis points to 2.6% on an organic basis. Nonetheless, Adjusted EBITDA increased to $243 million, marking an 18.5% year-over-year growth.

Specifically, the Power segment generated $4.206 billion in revenue, marking an 8% increase from last year, while order intake reached $5.202 billion, up by 28%. This growth was attributed to demand for Gas Power equipment and services, which included 9 HA and 15 aeroderivative units, with a remarkable 29% growth in service orders.

In the Wind segment, revenue remained stable at $2.89 billion, showing no change from the previous year. However, orders fell by 19% year-over-year, coming in at $1.747 billion, primarily due to a decrease in orders for Onshore Wind equipment outside North America.

GE Vernova's Electrification segment reported a revenue increase of 22% year-over-year, totaling $1.928 billion thanks to strong performance in Grid Solutions and Power Conversion. Orders in this segment also rose by 17% year-over-year, reaching $2.51 billion.

Cash generated from operating activities during the quarter was notably robust, amounting to $1.127 billion, a significant turnaround from last year when the company used $233 million in cash. Free cash flow reached $968 million, reflecting improved financial health.

At the end of the third quarter, GE Vernova boasted a cash balance of $7.4 billion, up from $5.8 billion at the end of the second quarter of 2024.

2024 Guidance Update: The company reaffirmed its revenue guidance, expecting to trend towards the upper range of $34 billion to $35 billion, with the current estimate at $34.93 billion. Furthermore, GE Vernova anticipates free cash flow to also trend towards the higher end of the previous projection of $1.3 billion to $1.7 billion.

Price Movement: Following the earnings announcement, GEV shares fell by 4.49%, trading at $264.00 in premarket conditions.

Earnings, Finance, Companies