General Electrics Vernova Half-Year Report 2024
“GE Vernova delivered another strong quarter with EBITDA margin expansion across all segments and substantial cash improvement,” said GE Vernova CEO Scott Strazik. “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.”
In the second quarter, GE Vernova orders of $11.8 billion decreased (7)% organically, primarily due to a large Offshore Wind equipment order in the second quarter of last year that was canceled in the fourth quarter. Services orders increased double-digits, led by Power and Electrification. Revenue of $8.2 billion was up +1%, +2% organically*, driven by continued strength in Electrification and Power and positive price in all three segments. Services revenue grew +7%, +9% organically*, with growth across all segments. Margins expanded by more than 300 basis points from productivity, price and services volume. Cash flow improved by more than $1.0 billion, sequentially and year-over-year, driven by working capital and adjusted EBITDA growth.
Highlights
- 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 (FCF) 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
