GE Vernova today released its first annual report since becoming an independent company, detailing how 2024 was a foundational year as the company positions itself to serve in an unprecedented era of electric growth. With 75,000 employees around the globe, the company’s technology helps generate approximately 25% of the world’s electricity. Given its broad portfolio of energy solutions across power, wind, and electrification technologies, GE Vernova is uniquely positioned to lead a new era of energy — delivering on its mission to electrify the world while simultaneously working to decarbonize it.
“We approach our role with an enormous sense of responsibility, knowing the world relies on us for the equipment, services, and software to produce and distribute the electricity it needs,” writes Chief Executive Officer Scott Strazik in his first letter to stockholders that kicks off the report. “By nurturing today’s state-of-the-art technologies, while investing in innovation, cutting-edge manufacturing, and lean, we see a clear pathway to grow electrical supply while addressing climate change.”
The year 2024 marked a strong start for the new company’s financial performance. Orders came in at $44 billion, with revenue of $35 billion, and all segments delivered margin expansion. Power delivered solid growth and margin expansion, led by Gas Power, and the company expects demand in this segment to remain strong heading into 2025. In Wind, GE Vernova delivered solid progress on its turnaround. Lastly, Electrification, GE Vernova’s fastest-growing segment, experienced significant orders and backlog growth as customers increased their grid investments.
In 2024, GE Vernova also added to its backlog, supported by growing global demand for electric power. “We grew our already healthy backlog to $119 billion while also expanding margins in backlog, which will fuel profitable growth well into the future,” Strazik writes in his letter. “In December, we raised our multi-year financial outlook and launched our capital allocation framework, including a shareholder return commitment with our first dividend and share repurchase authorization. We are well-positioned to create value for our stakeholders in 2025 and beyond.”
A New Era
The annual report outlines the unprecedented era of electric growth ahead and how GE Vernova is delivering its industry transformation. Electricity demand growth in the United States is predicted to grow 50% over the next 20 years, and countries around the world are also accelerating their demand for incremental power. This growth, Strazik says, is a catalyst for a new opportunity that will play out over generations. “We are in the early stages of the next supercycle: global investment into the electric power system.” GE Vernova, with its unique scope, portfolio, and scale, is well-positioned to lead the next era of energy.
In the report, Strazik writes that we are in the midst of a clear global shift: “The world is increasingly being powered with electrons rather than by molecules.” And, he adds, “every electron is precious. We need to get the most out of our electric power system by growing and transforming today’s aging existing infrastructure.” At the same time, he says the world needs to prioritize investment into scalable, power-dense “workhorse” products.
The backbone of the electric power system is the grid, and grid investments are projected to double by 2030. “This is our sweet spot,” Strazik says, as more than 95% of power transmission utilities in the world are equipped with components from GE Vernova’s electrification systems. Heating, transport, and industrialism are all in the process of migrating to the grid, albeit at different speeds. GE Vernova brings a number of solutions to this growth, not least of which is sophisticated grid software that optimizes efficiency for customers. The company also offers upgrade solutions for its installed base of gas turbines, nuclear units, and hydropower plants, and through wind repowering.
The Work Ahead
With nearly a year as a standalone company under its belt, GE Vernova sees five top priorities for 2025: continuing to accelerate the GE Vernova culture; scaling for significant growth in Gas Power and Grid Solutions; delivering the Wind turnaround; positioning Nuclear and Electrification Software to play a meaningful role; and sustaining the company’s discipline in managing cash and cost structure. The company culture is always open to ideas both from within and from the outside world of government, academia, and start-ups, and foundational to this culture are safety, quality, delivery, and cost (SQDC), the true north that ties together all of GE Vernova’s aspirations.
GE Vernova is investing heavily in its own operations, announcing just last month that it will devote nearly $600 million over two years, mainly in Gas Power but also across Grid, Wind, Nuclear, and its Advanced Research Center (ARC), the productive lab where GE Vernova churns out tech innovations. As part of its Wind turnaround, the company is preparing for an inflection point in Onshore Wind, after a tough year for global offshore wind. Seeking to capitalize on the renewed interest in nuclear power, driven by higher demand from data centers, GE Vernova intends to strengthen its supply chain in 2025 as it remains on schedule to see its first 300-megawatt small modular reactor (SMR) commissioned in Ontario, in 2029.
According to Strazik, the best is yet to come. “2025 will be an exciting year for GE Vernova and our industry. There are abundant opportunities for our company to help meet the surging global demand for electric power with our equipment, services, and software. We will partner with our customers and the wider energy ecosystem to shape and deliver the future energy system, one that provides abundant, resilient, and sustainable energy for everyone.”
Please click here to read GE Vernova’s 2024 Annual Report.
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