GE Vernova has announced its financial results for the first quarter ending March 31, 2024. In the quarter, GE Vernova reported orders of $9.7 billion, showing a marginal organic decline of 1%.
Revenue increased by 6% overall to $7.3 billion, with a 5% organic growth, primarily driven by the Electrification and Power segments. Services revenue grew by 9%, with an organic growth of 8% across all segments, supported by improvements in price, productivity, cost management, and volume, leading to enhanced margins.
However, the Wind segment faced challenges, with orders declining by 40% organically to $1.1 billion. This decline was attributed to ongoing siting and permitting processes by developers. Revenues from the Wind segment also decreased by 6% overall, with a 7% organic decline, mainly due to lower Onshore revenues, partly offset by Offshore backlog execution. Despite these challenges, GE Vernova managed to book 0.6GW of wind turbine orders while maintaining focus on selectivity, lean operations, and pricing strategies.
Looking ahead, GE Vernova reaffirmed its 2024 financial guidance, expecting revenue in the range of $34-35 billion, adjusted EBITDA margin at the high end of mid-single digits, cash from operating activities between $1.5-1.9 billion, and free cash flow ranging from $0.7-1.1 billion. Additionally, the company reiterated its segment guidance for wind, aiming for flat organic revenue growth and moving towards profitability.
