General Electric Vernova debuts flat financial results with its first-ever earnings
On April 25th, less than one month after becoming an official company, General Electric Vernova reported its first-ever financial results.
Unfortunately, in the quarter, GE Vernova orders of $9.7 billion were mostly flat, down 1% organically.
Net income came in at a loss of $0.1 billion.
However, revenue of $7.3 billion was up 6%, or 5% organically, driven by electrification and power.
Services revenue grew by 9%, with growth across all segments. Margins were higher from price, productivity, cost management and volume.
What is General Electric Vernova?
General Electric Vernova is a new publicly-traded company which sits under the aegis of General Electric.
Formerly a division of the original GE company, GE Vernova is the energy, power and renewables arm of General Electric.
In November 2021, GE announced it would split into three separate companies: General Electric Aerospace, General Electric Vernova and General Electric HealthCare.
GE Vernova was created out of GE’s portfolio of energy businesses at the beginning of April, earlier this month. On April 10th, the company made it official by ceremonially ringing the bell at the New York Stock Exchange on April 10th.
What does General Electric Vernova do?
GE Vernova focuses on providing power solutions with sustainability, with a special focus on green energy and ESG. The company also says it works towards its goals by “investing approximately $1 billion annually in research and development to drive breakthrough energy transition technologies.”
An important mission
According to GE Vernova’s website, global demand for electricity and decarbonized solutions is set to more than double the electricity generation capacity needed by the planet by 2040.
As the self-proclaimed supplier of more than 30% of the entire globe’s electricity, GE Vernova is working to make this power provision as green as possible.
Expectations
For the full 2024 financial year, GE said in December that Vernova expects to deliver revenue of $34 billion to $35 billion; adjusted EBITDA margin of mid-single digits, toward the higher end of the range; and free cash flow of between $0.7 billion to $1.1 billion.
The company reiterated these same numbers in its Investor Day, held on March 6th last month.
Previous results
Although these are Vernova’s first financial results as a standalone company, they were still held to previous results, from when they existed as a division of General Electric.
In GE’s previous financial results, CEO H. Lawrence Culp Jr said the following:
At GE Vernova, Renewable Energy and Power together delivered meaningfully better results, with double-digit revenue growth in the quarter and positive profit and free cash flow for the year. We expect further revenue, profit, and free cash flow growth for both GE Aerospace and GE Vernova in 2024.”
So far, the company is not yet on track to deliver a positive profit for the 2024 year, with revenue also still firmly within single digits.
The post General Electric Vernova debuts flat financial results with its first-ever earnings appeared first on Invezz
