GE Vernova Inc. Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

GE Vernova Q3 2024 Earnings Summary

Overall Company Performance

  • GE Vernova delivered strong Q3 results with double‑digit organic orders and revenue growth. Margin expansion continued across Power, Electrification, and Onshore Wind, partially offset by Offshore Wind contract losses.
  • Revenue grew 10% year‑over‑year. Services revenue grew in all segments, up 9% year‑to‑date compared to 2023.
  • Adjusted EBITDA margin expanded by more than 200 bps year‑to‑date versus 2023.
  • Free cash flow reached nearly $1 billion in the quarter, improving by $900 million compared to Q3 2023. Year‑to‑date free cash flow reached $1.1 billion, up $2 billion year‑over‑year.
  • Cash balance increased to $7.4 billion from $5.8 billion in Q2 due in part to the sale of a 16% stake in GE Vernova T&D India for ~$700 million pre‑tax.
  • Backlog rose to $118 billion, up both sequentially and year‑over‑year.

Segment Highlights

Power

  • Outstanding quarter with orders up 34% year‑over‑year, driven by strong equipment demand.
  • Equipment orders: 40% growth, including 9 HA gas turbine orders (more than all HA orders booked in 2023) and 15 aeroderivative units (nearly double Q3 2023 levels).
  • Services orders up 29% on higher outage and upgrade activity.

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Operator: Good day, ladies and gentlemen and welcome to the GE Vernova's Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. My name is Liz [ph] and I will be your conference coordinator today. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Michael Lapides, Vice President of Investor Relations. Please proceed. Michael Lapides: Thank you. Welcome to GE Vernova's third quarter 2024 earnings call. I'm joined today by our CEO, Scott Strazik; and CFO, Ken Parks. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's Form 10-Q, press release and in the presentation slides, all of which are available on our website. Please note that year-over-year commentary or variances on orders, revenue, adjusted EBITDA and margin discussed during our prepared remarks are on an organic basis. We will make forward-looking statements about our performance. These statements are based on how we see things today. While we may elect to update these forward-looking statements at some point in the future, we do not undertake any obligation to do so. As described in our SEC filings, actual results may differ materially due to risks and uncertainty. With that, I'll hand the call over to Scott. Scott Strazik: Thanks, Michael. Good morning, everyone and

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