Ge Vernova Inc. · NYSE:GEV
Ge Vernova — Q1 2024 Earnings Presentation
25 slides from Ge Vernova's earnings presentation, Apr 25, 2024
Slide 1: 1Q 2024 Financial Results
1Q 2024 Financial Results April 25, 2024 © 2024 GE Vernova and/or its affiliates. All rights reserved. 1
Slide 2: Caution concerning forward-looking statements
Caution concerning forward-looking statements: Certain statements contained in this presentation and certain other public communications and SEC filings of GE Vernova Inc. (“GE Vernova”, the “Company”, “we” and “us”) may constitute “forward-looking statements” that involve risks and uncertainties. F
Slide 3: Executing our strategy
Executing our strategy Lean operating model focused on safety, Increased electrification & decarbonization quality, delivery & cost trends driving multi-decade tailwinds • Improving the injury & illness (I&I) rate with fatality- • Gas utilization increasing, with growing interest in free operations
Slide 4: A solid start to 2024
A solid start to 2024 • Disciplined equipment revenue growth and continued strength in services • Increased backlog-a) … with higher equipment margins • Improved margins significantly across all segments • Better free cash flow* performance y/y & expect meaningful acceleration through 2024 A generat
Slide 5: Financial snapshot
Financial snapshot $ in billions 1Q’23-a) 1Q’24 Y/Y-b) Dynamics-b) Orders 9.7 9.7 (1)% • Orders: lower Wind & Electrification more than offset Power strength; services grew, equipment decreased Revenue 6.8 7.3 5%* • Revenue: growth driven by Electrification & Power; growth across services & equipmen
Slide 6: Power
Power 8.6% EBITDA (Margin) Dynamics-a) • Orders strong with 8 HA & 18 Aeroderivative gas turbine orders; service orders up double-digits 4.6% EBITDA • Revenue growth from higher Gas Power services; ($M) equipment revenue declined slightly • Services volume as well as price & productivity expanded EB
Slide 7: Wind
Wind Dynamics-a) EBITDA • Lower equipment orders due to softer Onshore Wind ($M) North America (10.6)% EBITDA (14.8)% (Margin) • Onshore Wind delivered positive EBITDA despite lower revenue • Executing challenged Offshore Wind backlog-b) with higher equipment deliveries resulting in EBITDA losses Or
Slide 8: Electrification
Electrification 4.0% EBITDA (Margin) Dynamics-a) EBITDA • 1Q’24 orders more than 2 times revenue; growing ($M) backlog-b) at better margins • Significant revenue growth led by Grid Solutions (2.3)% • Volume, productivity & price expanded EBITDA margins • Strong demand to drive substantial revenue &
Slide 9: Reaffirming 2024 guidance
Reaffirming 2024 guidance Power REVENUE $34 – 35B ◦ Mid-single-digit (MSD) organic revenue* growth ◦ ~100bps organic segment EBITDA margin* expansion High-end Wind ADJUSTED ◦ Flat organic revenue* growth EBITDA MARGIN*-a) MSD ◦ Approaching profitability Electrification FREE CASH $0.7 – 1.1B ◦ Low-do
Slide 10: Energy transition is a growing, exciting market
Energy transition is a growing, exciting market Power generates significant, growing FCF* Wind expected to experience multiple years of margin expansion Electrification is a high growth segment with improving profitability Lean operating system with sustainability & innovation at our core GE Vernova
Slide 11: Q&A
Q&A © 2024 GE Vernova and/or its affiliates. All rights reserved. 11
Slide 12: Appendix
Appendix © 2024 GE Vernova and/or its affiliates. All rights reserved. 12
Slide 13: Sustainability framework
Delivering innovative technologies to create a more sustainable electric power system Sustainability framework Catalyze access to more secure, Invent, deploy, and service sustainable, reliable and affordable technology to help decarbonize and electricity to help drive global electrify the world econ
Slide 14: Financial trending metrics
Financial trending metrics 1Q'24 y/y % Orders ($M) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 (organic) Total Orders 9,658 12,714 8,245 11,020 9,659 (1) % Equipment 6,268 8,786 4,761 5,902 5,773 (10) % Services 3,391 3,928 3,484 5,117 3,887 14 % 1Q'24 y/y % Revenues ($M) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 (organic)*
Slide 15: Financial trending metrics by segment
Financial trending metrics by segment 1Q'24 y/y % Power ($M) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 (organic)* Segment Revenue 3,821 4,131 3,893 5,591 4,035 4% Equipment 1,180 1,147 1,291 1,981 1,201 (1) % Services 2,641 2,984 2,602 3,611 2,833 7% Segment EBITDA margin 177 466 280 799 345 Segment EBITDA marg
Slide 16: Power: key performance metrics
Power: key performance metrics Orders ($M) 1Q'23 1Q'24 y/y % (organic) Equipment 1,385 2,057 47 % Services 2,633 2,972 12 % Total Orders 4,018 5,029 24 % RPO ($M) 1Q'23 1Q'24 y/y % Equipment 13,992 14,394 3% Services 57,198 58,389 2% Total RPO 71,190 72,783 2% Segment Revenues and EBITDA ($M) 1Q'23
Slide 17: Wind: key performance metrics
Wind: key performance metrics Orders ($M) 1Q'23 1Q'24 y/y % (organic) Equipment 1,587 744 (53) % Services 331 406 22 % Total Orders 1,919 1,150 (40) % RPO ($M) 1Q'23 1Q'24 y/y % Equipment 12,433 13,119 6% Services 13,493 13,045 (3) % Total RPO 25,926 26,164 1% Segment Revenue and EBITDA ($M) 1Q'23 1
Slide 18: Electrification: key performance metrics
Electrification: key performance metrics Orders ($M) 1Q'23 1Q'24 y/y % (organic) Equipment 3,361 3,012 (13) % Services 495 559 12 % Total Orders 3,856 3,571 (10) % RPO ($M) 1Q'23 1Q'24 y/y % Equipment 8,875 14,849 67 % Services 2,836 3,221 14 % Total RPO 11,711 18,069 54 % Segment Revenue and EBITDA
Slide 19: Unit metrics: orders and sales
Unit metrics: orders and sales Orders 1Q'23 1Q'24 Gas Turbines 13 34 • Heavy-Duty Gas Turbines-a) 6 16 ◦ HA-Turbines-b) 4 8 • Aeroderivatives-a) 7 18 Gas Turbines (GW)-d) 2.3 4.9 Wind Turbines-c) 521 190 Wind Turbines (GW)-c),-d) 1.6 0.6 Repower units 46 41 Sales 1Q'23 1Q'24 Gas Turbines 23 17 • Hea
Slide 20: 1Q'23 financial summary
1Q’23 financial summary 1Q’23 GE Vernova financial summary ($M) Reported carve out basis Pro Forma basis-a) Revenue 6,822 6,822 Adjusted EBITDA* (185) (244) Adjusted EBITDA margin* (2.7) % (3.6) % Free cash flow* (814) (905) * Non-GAAP Financial Measure (a – the pro forma basis is presented after ma
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations © 2024 GE Vernova and/or its affiliates. All rights reserved. 21
Slide 22: Organic revenue, Segment revenue & Segment organic EBITDA margin
Organic revenue*, Segment revenue* & Segment organic EBITDA margin* Revenue Equipment revenue Services revenue Segment EBITDA Segment EBITDA margin % Three months ended March 31, ($ in millions) 2024 2023 V% 2024 2023 V% 2024 2023 V% 2024 2023 V% 2024 2023 V bps Power (GAAP) 4,035 3,821 6% 1,201 1,1
Slide 23: Adjusted EBITDA and Adjusted EBITDA margin reconciliations
Adjusted EBITDA*, Adjusted organic EBITDA*, Adjusted EBITDA margin* & Adjusted organic EBITDA margin* Reported Proforma-a) Three months ended March 31, ($ in millions) 2024 2023 V% 2023 Net income (loss) (GAAP) (106) (346) 69 % (369) Add: Restructuring and other charges 148 110 110 Add: Purchases an
Slide 24: Free Cash Flow
Free Cash Flow* Free Cash Flow* Reported Proforma-a) Three months ended March 31, ($ in millions) 2024 2023 V$ 2023 Cash from (used for) operating activities (GAAP) (444) (690) 246 (690) Add: gross additions to property, plant and equipment and internal-use software (217) (124) (124) Add: impact of
Slide 25: GE VERNOVA
GE VERNOVA