Revenue missed, but orders rose 22% amid strong electrification demand.
GE Vernova Inc. (NYSE: GEV ) shares are trading higher after the company. reported It reaffirmed its fourth-quarter 2024 results and 2025 outlook.
The company missed consensus of $10.78 billion and reported revenue growth of +9% year-over-year to $10.559 billion.
The company achieved backlog of $13.2 billion, posting 22% organic growth of ~1.3 times revenue, driven primarily by power and electrification equipment.
Revenue for the quarter was $1.73, compared to $0.72 a year ago. The $2.55 deal is gone.
Adjusted EBITDA margin expanded by 440 bps to 10.2% and by 440 bps to 10.6% on an organic basis, with Adjusted EBITDA at $1.08 billion (+85% YoY).
Power revenue was $5.431 billion (-3% YoY), and orders reached $6.552 billion (+20% YoY), led by gas power and hydro. Segment EBITDA reached $810 million, and margin increased 60 bps to 14.9 percent.
Wind revenue was $3.109 billion (+20% YoY), and orders reached $2.031 billion (-41% YoY). Segment EBITDA moved in at a 0.6% margin, up 1,180 basis points, onshore wind’s best quarter in three years, turning modestly profitable and reducing offshore wind losses.
Electrification revenue was $2.181 billion (+11% YoY). Orders gained 118% YoY to $4.786 billion due to strong demand for grid equipment and services. Segment EBITDA margin rose to 13%, up 500 basis points in physical terms.
Related: What’s happening with GE Vernova (GEV) stock ahead of Q4 earnings?
Revenue from operations in fiscal year 2014 was $2.583 billion, compared to $1.186 billion a year ago. Free cash flow reached $1.701 billion.
At the end of the quarter, the cash balance increased to $8.2 billion, down from $7.4 billion in the third quarter of 2024 and $4.2 billion on April 2, 2024.
In the fourth quarter of 2024, GEV authorized a share repurchase of $6 billion by purchasing 8,000 shares in December 2024.
“GE Vernova has built a solid foundation through 2024 with strong orders and revenue growth, as well as significant margin expansion and cash generation. “We’ve seen strength in power and electrification and the development of wind, growing our equipment backlog by better margins,” said GE Vernova’s CEO. Scott Strzyk.
Vision 2025: GE Vernova revised its 2025 outlook to $36 billion-$37 billion in revenue on a consensus basis of $36.88 billion, a single-digit adjusted EBITDA margin and $2 billion – $2.5 billion in free cash flow.
GE Vernova expects single-digit organic revenue growth and a 13%-14% EBITDA margin for energy. Wind is forecast to see a mid-single-digit decline in organic revenue with segment EBITDA of $200 million – $400 million. Electrification expects mid- to high-end organic revenue growth and an EBITDA margin of 11%-13%.