Today, GE Vernova released its second quarter 2024 earnings results. We delivered strong results in the second quarter with margin expansion across all segments, and substantial cash flow improvement, both sequentially and year-over-year. We also raised our full-year 2024 guidance for revenue, adjusted EBITDA margin* and free cash flow* (FCF).
We encourage you to review the materials and listen to our earnings call, which starts at 7:30 AM ET. The call will be archived following the event on our website at https://www.gevernova.com/investors.
Key total company financial highlights for second quarter 2024:
- Total orders of $11.8B exceeded revenue by 1.4X
- Total revenue of $8.2B, +1%; +2% organically*, led by services growing +7%, +9% organically*
- Net income of $1.3B, +$1.4B; net income margin of 15.6%, +1,740 bps
- Adjusted EBITDA* of $0.5B, +$0.3B organically*; adjusted EBITDA Margin* of 6.4%, +320 bps organically*
- Cash from operating activities of $1.0B, +$1.3B; positive free cash flow* of $0.8B, +$1.3B, from working capital and increased adjusted EBITDA*
- $5.8 billion cash balance, up from $4.2 billion upon spin-off from GE on April 2
GE Vernova CEO Scott Strazik said, “GE Vernova delivered another strong quarter with EBITDA margin expansion across all segments and substantial cash improvement. Global electrification and decarbonization trends continue to drive demand for our products and services, and we are delivering value for our stakeholders. Our lean operating model is focused on improving safety, quality, delivery and cost as we execute for our customers and innovate breakthrough energy transition technologies. Given our strong first half performance and momentum in our Power and Electrification segments, we are raising our full-year 2024 guidance.”
GE Vernova CFO Ken Parks said, “We’re very encouraged by our first half results as we execute on our strategy to deliver disciplined revenue growth with increased profitability and positive cash generation. Strong working capital management and higher EBITDA drove significant cash improvement in the second quarter. Based on our performance, we are now trending towards the higher end of our revenue guidance for 2024 and have increased our expectations for adjusted EBITDA margins and free cash flow. We remain focused on strategic capital allocation and are committed to maintaining our investment-grade balance sheet.”
Full-year 2024 financial guidance update:
We are raising our full-year 2024 financial guidance and now expect revenue to trend towards the higher end of $34-$35 billion and adjusted EBITDA margin* of 5%-7%, up from the higher end of mid-single digits. Additionally, we now expect free cash flow* of $1.3-$1.7 billion, up from $0.7-$1.1 billion.
We’re pleased with our strong financial performance in the first half of the year and are excited to continue delivering for our stakeholders in the second half and beyond. We thank you for your continued interest in GE Vernova and look forward to connecting with you during the third quarter.
Best,
Michael & team
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our second quarter 2024 earnings release and presentation slides posted on our Investor Relations website at https://www.gevernova.com/investors.
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. Except as required by law, we disclaim any obligation to update any forward-looking statements.