Today, GE Vernova released its third quarter 2024 earnings results. We delivered solid performance in the quarter with double-digit organic orders growth, continued revenue growth, and substantial cash flow. We also reaffirmed our GE Vernova 2024 financial guidance for revenue, adjusted EBITDA margin*, and free cash flow*.
We encourage you to review the materials and listen to our earnings call, which starts at 7:30 AM ET. A replay of the event will be available on our website at https://www.gevernova.com/investors.
Key total company financial highlights for third quarter 2024:
- Total orders of $9.4B, +17% organically, led by services
- Total revenue of $8.9B, +8%, +10% organically* with growth in both equipment and services
- Net income (loss) of $(0.1)B, +$0.1B; net income (loss) margin of (1.1)%, +110 bps
- Adjusted EBITDA* of $0.2B and adjusted EBITDA margin* of 2.7%, both slightly down organically*
- Cash from operating activities of $1.1B, +$0.9B; positive free cash flow* (FCF) of $1.0B, +$0.9B
- $7.4B cash balance, up from $5.8B in the second quarter of 2024
GE Vernova CEO Scott Strazik said, “GE Vernova had a solid third quarter, delivering double-digit orders and continued revenue growth with services strength across all segments, significant margin expansion in Power and Electrification, and substantial cash generation. We continued to leverage lean to drive operational improvements across safety, quality, delivery and cost, and released our first GE Vernova sustainability report, outlining our progress in helping to electrify and decarbonize the world. It is an exciting time in our industry and I appreciate the work our team is doing to serve growing customer demand for energy transition technologies and services, while creating value for our stakeholders.”
GE Vernova CFO Ken Parks said, “We’re encouraged by our results this year as we execute on our strategy to deliver disciplined revenue growth with increased profitability and positive cash generation. In the third quarter, we increased our already solid cash balance to $7.4 billion from substantial positive free cash flow and proceeds from the value-accretive sale of a stake in a business in India, and we remain committed to maintaining our investment grade balance sheet. With strong performance in Power and Electrification offsetting additional losses in Wind this quarter, we are reaffirming our GE Vernova 2024 financial guidance. We look forward to providing an update on strategic capital allocation and our multi-year financial outlook at our investor update event in December.”
GE Vernova 2024 financial guidance:
We are reaffirming our full-year 2024 GE Vernova guidance. We continue to expect revenue towards the higher end of $34-$35 billion, adjusted EBITDA margin* to be in the range of 5%-7%, and free cash flow* of $1.3-$1.7 billion, now trending towards the higher end of our free cash flow* range.
We’re pleased with our strong financial performance so far this year and are excited to continue delivering for our stakeholders in the remainder of 2024 and beyond. To stay in touch with future GE Vernova releases, please visit our website and sign up for email alerts. We thank you for your interest in GE Vernova and look forward to connecting with you during the fourth 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 third 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.