01—Abstract
Summary
Summary of the 10-Q filed April 30, 2024. Cited figures are marked; the original filing is the authoritative source.
GE Vernova Inc. (GEV) has released its first quarterly report as a standalone public company following its spin-off from General Electric on April 2, 2024.
For the first quarter of 2024, the company reported total revenues of $7.3 billiona, a 6% increase year-over-year, driven by growth in its Power and Electrification segments. However, the company reported a net loss of $106 million and a loss per share of $(0.47), a wider loss compared to the prior year, though non-GAAP adjusted net income showed improvement. The company's backlog, as measured by Remaining Performance Obligations (RPO), increased by 1% year-over-year to $116.3 billion, indicating strong future demand across its segments, particularly in Electrification.
GE Vernova has secured a new $3 billionb revolving credit facility and a $3 billion trade finance facility to support its liquidity as an independent entity. The company is actively managing the transition to a standalone status and navigating inflationary pressures through cost-saving initiatives and pricing adjustments. Despite the reported net loss, the significant increase in RPO and improvements in segment EBITDA, especially in Power and Electrification, suggest potential for future operational and financial recovery.
02—Key points
Key Highlights
- GE Vernova completed its spin-off from General Electric on April 2, 2024, becoming an independent public company.
- Total revenues increased by 6% to $7.3 billion in Q1 2024 compared to Q1 2023, primarily driven by growth in the Power and Electrification segments.
- The company reported a net loss of $106 million for Q1 2024, a widening of the net loss from the prior year's $346 million, though adjusted EBITDA and adjusted net income showed significant year-over-year improvements.
- Remaining Performance Obligations (RPO) increased by 7% year-over-year to $116.3 billion as of March 31, 2024, indicating robust future revenue potential, with Electrification showing the most significant growth.
- GE Vernova secured a $3.0 billion revolving credit facility and a $3.0 billion trade finance facility to ensure adequate liquidity as a standalone company.
- The Power segment saw a significant 95% increase in Segment EBITDA to $345 million, driven by higher outages and favorable pricing in Gas Power services.
- The Wind segment's Segment EBITDA improved by 33% to a loss of $173 million, reflecting cost reduction activities and improved pricing in Onshore Wind, though Offshore Wind continues to face project cost pressures.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, GE Vernova Inc. lost $0.02.
- Revenue$7.26B100.0%
- Cost of revenue−$6.11B84.2%
- Gross profit$1.15B15.8%
- Operating costs−$1.44B19.8%
- Operating income−$289.0M4.0%
- Interest, other & tax$159.0M2.2%
- Net income−$130.0M1.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 30, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $7.26B$6.82B | +6.4% |
| Cost of Revenue | $6.11B$5.90B | +3.5% |
| Gross Profit | $1.15B$919.00M | +25.1% |
| R&D Expenses | $237.00M$202.00M | +17.3% |
| SG&A Expenses | $1.20B$1.19B | +1.3% |
| Operating Income | -$289.00M-$469.00M | +38.4% |
| Net Income | -$130.00M-$315.00M | +58.7% |
| EPS (Basic) | $-0.47— | — |
| EPS (Diluted) | $-0.47— | — |
| Shares Outstanding (Basic) | 274.00M— | — |
| Shares Outstanding (Diluted) | 274.00M— | — |
05—Questions
Frequently Asked Questions
What is the financial performance of GE Vernova in its first quarter as a standalone company?
In its first quarter as a standalone company (Q1 2024), GE Vernova reported revenues of $7.3 billion, up 6% year-over-year, driven by growth in its Power and Electrification segments. However, it incurred a net loss of $106 million, a wider loss compared to the prior year's $346 million. Despite the net loss, non-GAAP adjusted EBITDA and adjusted net income showed significant year-over-year improvements, indicating operational progress.
How is GE Vernova's backlog looking, and what does this mean for future revenue?
GE Vernova's backlog, measured by Remaining Performance Obligations (RPO), stood at $116.3 billion as of March 31, 2024, an increase of 7% compared to the prior year. This robust backlog, particularly strong in the Electrification segment, suggests significant future revenue potential and stability for the company.
What is GE Vernova's liquidity position and access to capital as a new standalone entity?
As a newly independent company, GE Vernova has established its own liquidity resources. It has access to a $3.0 billion committed revolving credit facility and a $3.0 billion trade finance facility. The company also ended the quarter with approximately $3.3 billion in cash, cash equivalents, and restricted cash, providing a solid financial foundation for its operations.
What are the key segment performances, and what challenges or opportunities are highlighted?
The Power segment showed strong improvement with a 95% increase in Segment EBITDA, driven by services in Gas Power. The Electrification segment also saw revenue growth and improved EBITDA. The Wind segment, while still reporting an EBITDA loss, showed significant improvement due to cost reductions and pricing, though it continues to face challenges in offshore wind project execution. The company is actively managing inflationary pressures and supply chain issues across all segments.
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