GE Vernova Reports Mixed Q3 Results

CAMBRIDGE, Mass. – GE Vernova Inc. (NYSE:GEV) reported mixed third-quarter results on Wednesday, with revenue beating expectations but earnings falling short, resulting in a 5.5% decline in shares during early trading.

The energy technology company posted a loss of -$0.35 per share for the quarter, significantly below the analyst consensus estimate of $0.24 in earnings. Revenue was $8.91 billion, surpassing the projected $8.78 billion and marking an 8% year-over-year increase.

CEO Scott Strazik highlighted the "solid third quarter," noting double-digit orders growth and continuous revenue expansion. He stated, "We continued to leverage lean to drive operational improvements across safety, quality, delivery, and cost."

The company reported total orders of $9.4 billion, an increase of 17% organically, driven by a 28% organic rise in services orders across all segments. Revenue growth was led by the Power and Electrification segments, while the Wind segment faced challenges.

Despite the earnings miss, GE Vernova reaffirmed its full-year 2024 guidance, projecting revenue towards the higher end of $34-35 billion. The company expects free cash flow to trend towards the upper end of its $1.3-1.7 billion forecast.

CFO Ken Parks emphasized the strong cash position, stating, "We increased our already solid cash balance to $7.4 billion from substantial positive free cash flow and proceeds from the value-accretive sale of a stake in a business in India."

While Power and Electrification segments showed improvement, the Wind segment reported increased losses due to offshore wind contract issues. However, the company noted that Onshore Wind achieved its most profitable quarter in years.

GE Vernova plans to provide an update on strategic capital allocation and its multi-year financial outlook at an investor event in December.

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