Summary
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 billion, 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 billion 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.
Financial Highlights
39 data points| Revenue | $7.26B |
| Cost of Revenue | $6.11B |
| Gross Profit | $1.15B |
| R&D Expenses | $237.00M |
| SG&A Expenses | $1.20B |
| Operating Income | -$289.00M |
| Net Income | -$130.00M |
| EPS (Basic) | $-0.47 |
| EPS (Diluted) | $-0.47 |
| Shares Outstanding (Basic) | 274.00M |
| Shares Outstanding (Diluted) | 274.00M |
Key Highlights
- 1GE Vernova completed its spin-off from General Electric on April 2, 2024, becoming an independent public company.
- 2Total 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.
- 3The 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.
- 4Remaining 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.
- 5GE 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.
- 6The Power segment saw a significant 95% increase in Segment EBITDA to $345 million, driven by higher outages and favorable pricing in Gas Power services.
- 7The 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.