GE Vernova Q3 Earnings: Strong Sales, Earnings Miss, Cash Flow Surge & More

GE Vernova Inc. GEV shares are trading lower in premarket after the company reported mixed third-quarter results.

The company reported revenue growth of 8% year-over-year to $8.913 billion and +10% YoY organically, beating the consensus of $8.783 billion.

“GE Vernova had a solid third quarter, delivering double-digit orders and continued revenue growth with services strength across all segments, significant margin expansion in Power and Electrification, and substantial cash generation,” commented GE Vernova CEO Scott Strazik.

Orders totaling $9.4 billion increased 17% organically, driven by services growth of +28 % organically, with strength across all segments, and equipment growth in Power and Electrification.

Loss per share for the quarter stood at $0.35, compared to a $0.62 loss a year ago, missing the EPS consensus of $0.32. Net loss narrowed to $99 million from $185 million loss last year.

Adjusted EBITDA margin expanded by 20 bps to 2.7% and contracted 70 bps to 2.6% on an organic basis, with Adjusted EBITDA of $243 million (+18.5% YoY).

Power revenue was $4.206 billion (+8% YoY), and Orders reached $5.202 billion (+28% YoY), led by Gas Power equipment and services, with 9 HA and 15 aeroderivative units, and services growth of 29% organically.

Wind revenue was $2.89 billion (flat YoY), and Orders reached $1.747 billion (-19% YoY), reflecting lower Onshore Wind equipment orders outside of North America.

Electrification revenue was $1.928 billion (+22% YoY), driven by Grid Solutions and Power Conversion. Orders gained 17% YoY to $2.51 billion.

Cash from operating activities for the quarter totaled $1.127 billion, compared to $233 million used a year ago. Free cash flow stood at $968 million.

At the end of the quarter, GEV had a $7.4 billion cash balance, up from $5.8 billion in the second quarter of 2024.

Also Read: GE Vernova Vs. GE Healthcare: Betting On Power Or Medical Tech To Lead AI-Powered Future?

2024 Guidance, reaffirmed: GE Vernova expects revenue to trend towards the higher end of $34 billion – $35 billion versus $34.93 billion.

The company now expects free cash flow to trend towards the higher end of the $1.3 billion – $1.7 billion range.

Price Action: GEV shares traded lower by 4.49% at $264.00 premarket at the last check Wednesday.