Yesterday, GE Vernova hosted its 2024 Investor Update event in New York City. Given our strong financial trajectory from robust customer demand and better execution, we raised our 2025 guidance and our outlook by 2028. We also framed our capital allocation strategy, announcing that our Board of Directors declared a quarterly dividend and approved an initial share repurchase authorization.

We encourage you to review the replay of the event and its accompanying materials, which can be accessed on GE Vernova’s Investor Relations website here.

Multi-year financial outlook updates:

• 2024 guidance: continue to expect revenue towards the higher end of $34-35 billion and free cash flow* towards the higher end of $1.3-$1.7 billion; narrowed our adjusted EBITDA margin* guidance range to 5.5-6%
• 2025 guidance: now expect revenue of $36-$37 billion, high-single digits adjusted EBITDA margin*, and free cash flow* of $2-$2.5 billion
• By 2028 outlook: now expect organic revenue growth* of high-single digits^-a), adjusted EBITDA margin* of 14%, and free cash flow* conversion of ~100%^-b)

Other key announcements:

• Plan to invest ~$4B in capex and ~$5B in R&D through 2028 to fuel growth and innovation
• Expect to generate at least $14B of cumulative free cash flow* from 2025 to 2028
• Expect to have $10B+ in cash available to deploy by 2028 after accounting for operating needs and shareholder returns
• Board of Directors declared a $0.25 per share quarterly dividend payable on January 28, 2025 to shareholders of record as of December 20, 2024, and approved an initial $6B share repurchase authorization

GE Vernova CEO Scott Strazik said, “GE Vernova is well-positioned to lead as the investment supercycle for the energy transition gains momentum. Robust demand for our technologies and services, along with better execution through our lean culture, is driving improved financial results. We are driving growth and innovation with $9 billion in cumulative R&D and capex investments planned through 2028, including an approximately 20 percent increase in R&D spend expected in 2025. With growing revenue, margins, and free cash flow, we are building on our strong foundation and deploying a disciplined capital allocation strategy for shareholder value creation.”

GE Vernova CFO Ken Parks said, “We are executing our financial strategy, and we now expect to generate at least $14 billion in cumulative free cash flow by 2028. Our large and growing backlog, with healthy margins from services and better equipment pricing, is fueling our trajectory as we raise our 2025 guidance and outlook by 2028. We remain committed to maintaining an investment grade balance sheet as we make organic investments, pursue targeted M&A, and return at least one third of cash generation to shareholders through dividends and share repurchases.”

We are excited to continue delivering for our customers and creating value for our shareholders. To stay up to date with future GE Vernova announcements, please visit our website and sign up for email alerts. We thank you for your continued interest in GE Vernova and look forward to connecting with you.

Best,

Michael & team

(a-  Compound annual growth rate through 2028; 2025 is the base year

(b-  Represents the expected free cash flow* conversion by 2028

*Non-GAAP Financial Measure. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. The reasons we use these non-GAAP financial measures are included in our press release and presentation slides relating to our December 10 investor update event posted on our Investor Relations website at https://www.gevernova.com/investors. We cannot provide a reconciliation of the differences between the non-GAAP financial measures expectations included in this newsletter to the corresponding GAAP measure without unreasonable effort due to, as applicable, the uncertainty of the costs and timing associated with potential restructuring actions, the impacts of depreciation and amortization, foreign exchange rates, and the timing for capital expenditures.

**FCF* conversion: FCF* / net income*

This document contains forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions. Words such as “expects,” “intends,” “plans,” and similar expressions, may identify such forward-looking statements. Visit our website on the details of the uncertainties that may cause our actual future results to be materially different than those express in our forward-looking statements. Except as required by law, we disclaim any obligation to update any forward-looking statements.