Ge Vernova Inc. · NYSE:GEV
Ge Vernova — Q3 2024 Earnings Presentation
28 slides from Ge Vernova's earnings presentation, Oct 23, 2024
Slide 1: 3Q 2024 Financial Results
3Q 2024 Financial Results October 23, 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 the energy transition with sustainability at our core
Leading the energy transition with sustainability at our core Macro tailwinds strengthening Published our first Sustainability Report... Increasing demand for power generation Energy security & reliability requiring increased grid infrastructure Customers investing in decarbonization technologies ge
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 • Increasing capacity at Gas Power, seeing robust • Safety remains our top priority demand across equipment and services -a) • Continui
Slide 5: Solid 3Q'24 results
Solid 3Q’24 results • Double-digit growth-a) in orders and revenue, with significant strength in services • Margin expansion at Power, Electrification and Onshore Wind • Substantial cash generation from free cash flow* & value accretive portfolio actions Technicians with a 7HA.03 gas turbine in Gree
Slide 6: Financial snapshot
Financial snapshot $ in billions 3Q’23-a) 3Q’24 ‘23 YTD-a) ‘24 YTD 3Q’24 Dynamics-b) Orders 8.2 9.4 30.6 30.9 • Orders +17%: strong services; demand remains robust at Power & Electrification; lower Onshore Wind equipment Revenue 8.3 8.9 23.2 24.4 • Revenue +10%: solid growth in both equipment & serv
Slide 7: Power
Power 11.9% 11.5% EBITDA 3Q’24 Dynamics-a) Margin • Strong equipment orders with 9 HA & 15 aeroderivative 7.8% units; services orders increased +29% 7.2% EBITDA 1,457 ($M) • Revenue growth from higher services & equipment at 923 Gas Power 499 280 • Higher volume, productivity & price expanded EBITDA
Slide 8: Wind
Wind (225) 3Q’24 Dynamics-a) (317) • Lower Onshore Wind equipment orders, executing (607) EBITDA ($M) challenged Offshore Wind backlog-b) (744) • Slightly lower revenue; higher Onshore Wind more than (7.8)% offset by lower Offshore Wind EBITDA (9.2)% Margin (10.3)% • EBITDA losses increased; higher
Slide 9: Electrification
Electrification 10.4% 3Q’24 Dynamics-a) 7.4% EBITDA • Continued orders strength, outpacing revenue from Margin growing demand for grid equipment & services 396 EBITDA 4.1% ($M) • Significant revenue growth continued, led by Grid Solutions & Power Conversion 201 1.5% • Achieved double-digit EBITDA ma
Slide 10: 2024 guidance
2024 guidance Power • Organic revenue* growth of mid-single-digits REVENUE $34B - $35B • Higher end of ~150-200bps organic segment trending towards the higher end EBITDA margin* expansion Wind ADJUSTED • Flat organic revenue* 5% - 7% EBITDA MARGIN*-a) • Approaching profitability with a nearly 50% se
Slide 11: Energy transition is a growing, exciting market
Energy transition is a growing, exciting market Power generates significant, growing FCF* Wind expected to experience multiple years of margin expansion Electrification is a high growth segment with improving profitability Lean operating system with sustainability & innovation at our core GE Vernova
Slide 12: Q&A
Q&A PLN Indonesia Power’s Tambak Lorok HA-powered gas First of 674 3.6MW-154m workhorse turbines that will August 2024 installation of an HVDC offshore power plant, which achieved commercial operation in August provide 2.4 GW+ of power installed at Pattern Energy’s converter platform at RWE's Sofia
Slide 13: Appendix
Appendix © 2024 GE Vernova and/or its affiliates. All rights reserved. GE and the GE Monogram are trademarks of General Electric Company used under trademark license 13
Slide 14: Our Sustainability Framework
ALIGNING GE VERNOVA’S BUSINESS GE Vernova’s Sustainability Framework comprises four pillars – Electrify, Decarbonize, Conserve, and Thrive – each with leading goals that SUCCESS WITH SUSTAINABILITY SUCCESS: progress our objectives to electrify and decarbonize the planet, conserve natural resources,
Slide 15: Financial trending metrics
Financial trending metrics 3Q'24 y/y % Orders ($M) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 (organic) Total Orders 9,658 12,714 8,245 11,020 9,659 11,844 9,397 17 % Equipment 6,268 8,786 4,761 5,902 5,773 7,428 5,042 8% Services 3,391 3,928 3,484 5,117 3,887 4,416 4,355 28 % 3Q'24 y/y % Revenues ($
Slide 16: Financial trending metrics by segment
Financial trending metrics by segment 3Q'24 y/y % Power ($M) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 (organic)* Segment Revenue 3,821 4,131 3,893 5,591 4,035 4,455 4,206 13% Equipment 1,180 1,147 1,291 1,981 1,201 1,285 1,426 19% Services 2,641 2,984 2,602 3,611 2,833 3,170 2,781 10% Segment EBITD
Slide 17: Power: key performance metrics
Power: key performance metrics Orders ($M) 3Q'23 3Q'24 y/y % (organic) 2023 YTD 2024 YTD y/y % (organic) Equipment 1,387 1,864 45% 3,529 5,435 59% Services 2,663 3,338 29% 8,444 9,772 17% Total Orders 4,050 5,202 34% 11,973 15,206 29% RPO ($M) 3Q'23 3Q'24 y/y % Equipment 13,865 11,392 (18)% Services
Slide 18: Wind: key performance metrics
Wind: key performance metrics Orders ($M) 3Q'23 3Q'24 y/y % (organic) 2023 YTD 2024 YTD y/y % (organic) Equipment 1,807 1,349 (25)% 6,928 3,867 (44) % Services 355 397 12% 1,042 1,189 14 % Total Orders 2,162 1,747 (19)% 7,970 5,057 (37)% RPO ($M) 3Q'23 3Q'24 y/y % Equipment 12,561 12,182 (3)% Servic
Slide 19: Electrification: key performance metrics
Electrification: key performance metrics Orders ($M) 3Q'23 3Q'24 y/y % (organic) 2023 YTD 2024 YTD y/y % (organic) Equipment 1,637 1,891 16% 9,529 9,087 (6) % Services 506 619 23% 1,482 1,816 22 % Total Orders 2,143 2,510 17% 11,010 10,904 (2)% RPO ($M) 3Q'23 3Q'24 y/y % Equipment 12,774 18,624 46%
Slide 20: Free cash flow performance
Free cash flow* performance FCF* ($M) 3Q'23 3Q'24 y/y 2023 YTD 2024 YTD y/y Net income (loss) (GAAP) (185) (99) 86 (680) 1,075 1,755 Adjustments to reconcile net income (loss) to cash from (used for) operating activities Depreciation and amortization of property, plant, and equipment 184 336 152 531
Slide 21: Unit metrics: orders and sales
Unit metrics: orders and sales Orders 3Q'23 3Q'24 2023 YTD 2024 YTD Gas Turbines 20 29 59 78 • Heavy-Duty Gas Turbines-a) 12 14 32 44 ◦ HA-Turbines-b) 4 9 8 21 • Aeroderivatives-a) 8 15 27 34 Gas Turbines (GW)-d) 3.1 5.1 7.4 14.1 Wind Turbines-c) 411 249 1,479 870 Repower units 27 132 173 378 Wind T
Slide 22: Financial summary
Financial summary GE Vernova financial summary ($M) 3Q’23 Reported carve out basis 3Q’23 Pro Forma basis-a) 2023 YTD Reported carve out basis 2023 YTD Pro Forma basis-a) Revenue 8,253 8,253 23,194 23,194 Adjusted EBITDA* 205 149 223 47 Adjusted EBITDA margin* 2.5% 1.8% 1.0% 0.2% Free cash flow* 52 (
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations © 2024 GE Vernova and/or its affiliates. All rights reserved. GE and the GE Monogram are trademarks of General Electric Company used under trademark license 23
Slide 24: Organic revenue, Segment organic revenue
Organic revenue*, Segment organic revenue* Three months ended September 30 Nine months ended September 30 Equipment revenue Services revenue Equipment revenue Services revenue ($ in millions) 2024 2023 V% 2024 2023 V% 2024 2023 V% 2024 2023 V% Power (GAAP) 1,426 1,291 10% 2,781 2,602 7% 3,912 3,618
Slide 25: Adjusted general and administrative expenses
Adjusted general and administrative expenses* Three months ended September 30 Nine months ended September 30 ADJUSTED GENERAL AND ADMINISTRATIVE (G&A) EXPENSES 2024 2023 V% 2024 2023 V% ($ in millions) Selling, general, and administrative expenses (GAAP) $ 1,226 $ 1,135 8 % $ 3,366 $ 3,593 (6)% Less
Slide 26: Adjusted EBITDA, margin & segment organic EBITDA margin
Adjusted EBITDA*, Adjusted EBITDA margin* & Segment organic EBITDA margin* Three Months ended September 30, 2023 Nine Months ended September 30, 2023 ($ in millions) Proforma-a) Reported Proforma-a) Reported Net income (loss) (GAAP) (210) (185) (754) (680) Add: Restructuring and other charges 105 10
Slide 27: Free Cash Flow
Free Cash Flow* Three Months ended September 30, 2023 Nine Months ended September 30, 2023 ($ in millions) Proforma-a) Reported Proforma-a) Reported Cash from (used for) operating activities (GAAP) 233 233 (745) (745) Add: gross additions to property, plant and equipment and internal-use software (1
Slide 28: GE Vernova
GE VERNOVA