Ge Vernova Inc. · NYSE:GEV
Ge Vernova — Q2 2024 Earnings Presentation
28 slides from Ge Vernova's earnings presentation, Jul 24, 2024
Slide 1: 2Q 2024 Financial Results
2Q 2024 Financial Results July 24, 2024 © 2024 GE Vernova and/or its affiliates. All rights reserved. GE and the GE Monogram are trademarks of General Electric Company used under trademark license 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: Leading in the energy transition
Leading in the energy transition Increasing demand for power generation Energy security & reliability requiring increased grid infrastructure Customers investing in decarbonization technologies Driving stronger financial results © 2024 © 2024 GE GE Vernova Vernova and/or and/or its its affiliates. a
Slide 4: Executing our strategy
Executing our strategy Well-positioned to serve growing demand & Leveraging lean to drive operational continue delivering value to stakeholders improvement and SQDC • Growth accelerating for Gas Power • Top priority remains fatality free operations • Electrification benefiting from grid investment •
Slide 5: Raising FY'24 guidance
Raising FY’24 guidance Strong 2Q’24 results Updated FY’24 guidance • Strong orders; equipment backlog-a) growth in Gas Power, Onshore Wind and Electrification REVENUE $34B - $35B trending towards the higher end • Revenue growth driven by price and services volume ADJUSTED 5% - 7% EBITDA MARGIN*-b) (
Slide 6: Financial snapshot
Financial snapshot $ in billions 2Q’23-a) 2Q’24 ‘23 YTD-a) ‘24 YTD 2Q’24 Dynamics-b) Orders 12.7 11.8 22.4 21.5 • Orders (7)%: demand remains strong; decreased due to one large Offshore Wind order & higher HVDC orders booked in 2Q’23 Revenue 8.1 8.2 14.9 15.5 • Revenue +2%: Electrification & Power g
Slide 7: Power
Power 13.8% 2Q’24 Dynamics-a) 11.3% 11.3% EBITDA Margin • Orders strong with 4 HA units; service orders increased double-digits 8.1% 958 EBITDA ($M) • Revenue growth from higher services & equipment at 613 643 Gas Power 466 • Services volume as well as productivity & price expanded EBITDA margins 2Q
Slide 8: Wind
Wind (117) 2Q’24 Dynamics-a) (259) (289) EBITDA • Lower equipment orders given large 2Q’23 Offshore ($M) Wind order (canceled in 4Q’23) & decreased Onshore (519) Wind (5.7)% EBITDA (7.8)% Margin • Executing challenged Offshore Wind backlog-b) with higher equipment revenue & lower EBITDA losses (10.0
Slide 9: Electrification
Electrification 7.2% 2Q’24 Dynamics-a) • 2Q’24 orders approximately 2.7 times revenue; 5.7% EBITDA growing profitable backlog-b) Margin • Significant revenue growth continued, led by Grid 2.1% 195 EBITDA Solutions & Power Conversion ($M) 129 0% • Volume, price & productivity expanded EBITDA 31 margi
Slide 10: 2024 guidance
2024 guidance Power $34B - $35B • Organic revenue* growth of mid-single-digits REVENUE trending towards the higher end • Organic segment EBITDA margin* expansion of ~150-200bps (previous: ~100bps) ADJUSTED 5% - 7% Wind -a) • Flat organic revenue* growth EBITDA MARGIN* (previous: high-end MSD margin)
Slide 11: Energy transition is a growing, exciting market
Energy transition is a growing, exciting market Power generates significant, growing FCF* Wind expected to experience multiple years of margin expansion Electrification is a high growth segment with improving profitability Lean operating system with sustainability & innovation at our core GE Vernova
Slide 12: Q&A
Q&A Signing of Transelec Hydro Power order in Chile Celebration of first H-Class gas turbine made in Saudi Arabia 12 © 2024 GE Vernova and/or its affiliates. All rights reserved.
Slide 13: Appendix
Appendix © 2024 GE Vernova and/or its affiliates. All rights reserved. GE and the GE Monogram are trademarks of General Electric Company used under trademark license 13
Slide 14: Sustainability framework
Delivering innovative technologies to create a more sustainable electric power system Sustainability framework Catalyze access to more secure, Invent, deploy, and service sustainable, reliable and affordable technology to help decarbonize and electricity to help drive global electrify the world econ
Slide 15: Financial trending metrics
Financial trending metrics 2Q'24 y/y % Orders ($M) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 (organic) Total Orders 9,658 12,714 8,245 11,020 9,659 11,844 (7)% Equipment 6,268 8,786 4,761 5,902 5,773 7,428 (16)% Services 3,391 3,928 3,484 5,117 3,887 4,416 14 % 2Q'24 y/y % Revenues ($M) 1Q'23 2Q'23 3Q'23
Slide 16: Financial trending metrics by segment
Financial trending metrics by segment 2Q'24 y/y % Power ($M) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 (organic)* Segment Revenue 3,821 4,131 3,893 5,591 4,035 4,455 10% Equipment 1,180 1,147 1,291 1,981 1,201 1,285 15% Services 2,641 2,984 2,602 3,611 2,833 3,170 8% Segment EBITDA 177 466 280 799 345 613
Slide 17: Power: key performance metrics
Power: key performance metrics Orders ($M) 2Q'23 2Q'24 y/y % (organic) 2023 YTD 2024 YTD y/y % (organic) Equipment 758 1,514 106% 2,142 3,571 68% Services 3,148 3,461 12% 5,782 6,434 12% Total Orders 3,906 4,975 30% 7,924 10,005 27% RPO ($M) 2Q'23 2Q'24 y/y % Equipment 13,980 10,978 (21)% Services 5
Slide 18: Wind: key performance metrics
Wind: key performance metrics Orders ($M) 2Q'23 2Q'24 y/y % (organic) 2023 YTD 2024 YTD y/y % (organic) Equipment 3,534 1,774 (50)% 5,121 2,518 (51) % Services 356 387 8% 687 792 15 % Total Orders 3,889 2,160 (44)% 5,808 3,310 (43)% RPO ($M) 2Q'23 2Q'24 y/y % Equipment 13,763 13,147 (4)% Services 13
Slide 19: Electrification: key performance metrics
Electrification: key performance metrics Orders ($M) 2Q'23 2Q'24 y/y % (organic) 2023 YTD 2024 YTD y/y % (organic) Equipment 4,530 4,184 (8)% 7,891 7,196 (10) % Services 481 639 32% 976 1,198 22 % Total Orders 5,011 4,823 (5)% 8,867 8,394 (7)% RPO ($M) 2Q'23 2Q'24 y/y % Equipment 12,496 17,540 40% S
Slide 20: Free cash flow* performance
Free cash flow* performance FCF* ($M) 2Q'23 2Q'24 y/y 2023 YTD 2024 YTD y/y Net income (loss) (GAAP) (149) 1,280 1,429 (495) 1,174 1,669 Adjustments to reconcile net income (loss) to cash from (used for) operating activities Depreciation and amortization of property, plant, and equipment 170 191 21
Slide 21: Unit metrics: orders and sales
Unit metrics: orders and sales Orders 2Q'23 2Q'24 2023 YTD 2024 YTD Gas Turbines 26 15 39 49 • Heavy-Duty Gas Turbines-a) 14 14 20 30 ◦ HA-Turbines-b) — 4 4 12 • Aeroderivatives-a) 12 1 19 19 Gas Turbines (GW)-d) 2.1 4.1 4.4 9.0 Wind Turbines-c) 547 431 1,068 621 Repower units 100 205 146 246 Wind T
Slide 22: Financial summary
Financial summary GE Vernova financial summary ($M) 2Q’23 Reported carve out basis 2Q’23 Pro Forma basis-a) 2023 YTD Reported carve out basis 2023 YTD Pro Forma basis-a) Revenue 8,119 8,119 14,941 14,941 Adjusted EBITDA* 203 142 18 (103) Adjusted EBITDA margin* 2.5% 1.8% 0.1% (0.7)% Free cash flow*
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations © 2024 GE Vernova and/or its affiliates. All rights reserved. GE and the GE Monogram are trademarks of General Electric Company used under trademark license 23
Slide 24: Organic revenue*, Segment organic revenue*
Organic revenue*, Segment organic revenue* Three months ended June 30 Six months ended June 30 Equipment revenue Services revenue Equipment revenue Services revenue ($ in millions) 2024 2023 V% 2024 2023 V% 2024 2023 V% 2024 2023 V% Power (GAAP) 1,285 1,147 12% 3,170 2,984 6% 2,486 2,327 7% 6,003 5,
Slide 25: Adjusted selling, general, and administrative expenses*
Adjusted selling, general, and administrative expenses* Three months ended June 30 Six months ended June 30 ADJUSTED SELLING, GENERAL, AND ADMINISTRATIVE (SG&A) EXPENSES 2024 2023 V% 2024 2023 V% ($ in millions) SG&A expenses (GAAP) $ 938 $ 1,272 (26)% $ 2,140 $ 2,458 (13)% Less: Restructuring and o
Slide 26: Adjusted EBITDA*, Adjusted EBITDA margin* & Segment organic EBITDA margin*
Adjusted EBITDA*, Adjusted EBITDA margin* & Segment organic EBITDA margin* Three Months ended June 30, 2023 Six Months ended June 30, 2023 ($ in millions) Proforma-a) Reported Proforma-a) Reported Net income (loss) (GAAP) (175) (149) (544) (495) Add: Restructuring and other charges 93 93 203 203 Add
Slide 27: Free Cash Flow*
Free Cash Flow* Three Months ended June 30, 2023 Six Months ended June 30, 2023 ($ in millions) Proforma-a) Reported Proforma-a) Reported Cash from (used for) operating activities (GAAP) (288) (288) (978) (978) Add: gross additions to property, plant and equipment and internal-use software (159) (15
Slide 28: GE VERNOVA
GE VERNOVA