Financial Condition and Risks - The company has a $3.0 billion committed credit facility and a $3.0 billion committed trade finance facility, but there is no assurance these will meet future needs[197]. - Changes in foreign currency values relative to the U.S. dollar could adversely affect the company's ability to sell products competitively and control costs, impacting revenue and income[196]. - Future material impairments in the value of long-lived assets, including goodwill, could negatively affect the company's financial condition and results of operations[200]. - The company is subject to periodic tax audits, which may result in additional tax, interest, and penalties, impacting financial results[203]. - Changes in tax laws and rates could increase the company's cash tax costs and effective tax rate, affecting liquidity and cash flows[202]. - The company may face limitations in accessing capital and credit markets, which could lead to liquidity issues and impact operations[197]. - The company may not be able to fully utilize deferred tax assets due to changes in taxable income generation in relevant countries[204]. - The Spin-Off could result in significant tax liabilities if determined to be a taxable transaction, adversely affecting the company's financial condition[205]. - The company may be required to indemnify GE for taxes resulting from the Spin-Off, which could materially impact its cash flows and results of operations[211]. - The company is exposed to risks related to foreign exchange translation, which could materially affect sales growth in international markets[196]. Strategic and Operational Challenges - The company agreed to numerous restrictions to preserve the non-recognition tax treatment of the Spin-Off, which may reduce strategic and operating flexibility for two years[214]. - The company may be unable to achieve the full strategic and financial benefits expected from the Spin-Off, which could adversely affect business, financial condition, cash flows, and results of operations[214]. - The company has been installing IT infrastructure to support business functions, which may incur substantially higher costs than anticipated and could disrupt operations if not completed effectively[216]. - The company will be required to conduct an annual management assessment of internal control effectiveness starting with the Annual Report on Form 10-K for the year ended December 31, 2025[217]. - The historical combined financial information for 2022 and 2023 does not necessarily reflect the results of operations as an independent, publicly traded company[220]. - The company may incur additional costs and demands on management's time associated with being an independent, publicly traded company, including corporate governance and public financial reporting[221]. - The company is subject to certain restrictions and covenants regarding GE credit support, which may delay or prevent strategic transactions[224]. - The company relies on GE to satisfy performance obligations under various transaction agreements related to the Spin-Off, and failure to do so could adversely affect business and financial condition[227]. - Certain non-U.S. entities or assets that were part of the separation from GE may not have been transferred prior to the Spin-Off, potentially delaying anticipated benefits[228]. Shareholder Returns and Stockholder Rights - The company plans to return at least one-third of its cash generation to stockholders, initiating a quarterly cash dividend of $0.25 per share and a share repurchase authorization of up to $6 billion[232]. - The stock price may fluctuate significantly due to various factors, potentially leading to securities class action lawsuits against the company[231]. - There is a risk that the company may not achieve its target for returning cash generation to stockholders, and the amounts returned may be less than planned[232]. - Holders of common stock may experience dilution due to future equity issuances for acquisitions and employee compensation[233]. - Certain provisions in the company's bylaws may discourage takeovers and limit stockholder power, including a classified board of directors until 2029[235]. - The company is subject to Delaware law, which could delay or prevent changes in control that stockholders may favor[236]. - The exclusive forum provisions in the company's certificate of incorporation may limit stockholders' ability to obtain a favorable judicial forum for disputes[238]. - The company may incur substantial litigation costs if third-party consents for contracts and joint ventures are not obtained[230]. - The ability to return cash to stockholders will depend on earnings, financial condition, and other factors, affecting the timing and size of share repurchases[232]. - The company may face challenges in replicating existing contracts or assigning portions of contracts related to its business due to third-party consent requirements[229].

Core Viewpoint - GE Vernova's stock has experienced significant volatility in early 2024, with a 13.4% increase in January followed by a sell-off due to competition from new AI models by DeepSeek [1][7] Company Performance - The fourth-quarter earnings report released on January 22 confirmed a bullish outlook for GE Vernova, which specializes in power generation equipment, wind power, and electrification solutions [2] - The power segment is crucial for the company's earnings, projected to generate $2.3 billion in EBITDA for 2024, compared to $679 million from electrification and a $588 million loss from the wind segment [3] Market Dynamics - The market has reassessed the growth prospects for GE Vernova's core power segment, recognizing that while the clean energy transition is inevitable, it will occur more slowly than previously anticipated, allowing gas to remain a significant part of the energy mix for decades [4][5] - Orders for the power segment increased by 20% in Q4 and 25% for the full year compared to 2023, with heavy-duty gas turbine orders rising from 41 in 2023 to 68 in 2024 [6] Industry Context - The ongoing demand for power from data centers, particularly driven by AI applications, supports the investment case for GE Vernova, despite the recent stock sell-off due to competition from DeepSeek [7]

Group 1: Investment Plans and Strategy - GE Vernova Inc. (GEV) plans to invest nearly $600 million in U.S. factories and facilities over the next two years to meet rising global energy demand, which is projected to double by 2050 [1] - This investment is part of a broader $9 billion capital expenditure and R&D plan through 2028, emphasizing GEV's commitment to innovation, energy security, and global competitiveness [2] Group 2: Stock Performance - GEV shares have increased by 154.6% over the past year, outperforming the Zacks Alternative-Energy industry's growth of 75.5% and the S&P 500's increase of 22.8% [4] - Other industry players, such as Talen Energy Corporation, Constellation Energy Corporation, and Bloom Energy, have also shown significant stock performance, with increases of 248.6%, 141.2%, and 109.5%, respectively [5] Group 3: Growth Catalysts - The global transition to clean energy solutions is a key growth driver for GEV, which has an installed base of approximately 56,000 onshore wind turbines and nearly 120 gigawatts of installed capacity worldwide [6] - GEV's Onshore Wind business received orders to repower over 1 GW of wind turbines in the U.S., with commercial operation dates expected between 2024 and 2027 [7] - The company anticipates continued growth in gas power generation, which will boost demand for its gas equipment and services [9] Group 4: Market Outlook and Estimates - Global electricity demand is expected to rise at an average rate of 3.4% annually through 2026, which should positively impact GEV's grid solution equipment and services [11] - The Zacks Consensus Estimate for GEV's long-term earnings growth is projected at 18%, with sales estimates for 2025 and 2026 indicating year-over-year improvements of 5.4% and 9.1%, respectively [12][13] Group 5: Valuation and Challenges - GEV's forward 12-month price-to-earnings (P/E) ratio is 52.64X, significantly higher than the peer group's average of 23.65X, indicating a premium valuation [20] - The offshore wind industry faces challenges such as increased material costs and supply-chain issues, which have led to project cancellations and may impact GEV's profitability [17][18]

Investors interested in Alternative Energy - Other stocks are likely familiar with Clearway Energy (CWENA) and GE Vernova (GEV) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that ta ...

Group 1 - The individual investor focuses on managing personal capital accumulated over the years, utilizing a diverse range of investment strategies including fundamental, technical, and momentum investing [1] - The investor aims to leverage the strengths of various investment approaches to refine their investment process [1] - The purpose of writing on Seeking Alpha is to track the performance of investment ideas and connect with like-minded investors [1]

GE Vernova (GEV) shares opened at a new record high Wednesday even though the energy company reporting worse-than-expected fourth-quarter results. The company reported net income of $484 million, or $1.73 per share, on revenue of $10.56 billion. Analysts polled by Visible Alpha expected a profit of $634.5 million, or $2.30 per share, on revenue of $10.74 billion. GE Vernova's wind segment reported earnings before interest, taxes, depreciation and amortization (EBITDA) of just $19 million, with the segment ...

Financial Data and Key Metrics Changes - The conference call will include both GAAP and non-GAAP financial results, with reconciliations available in the press release and presentation slides [4]. Business Line Data and Key Metrics Changes - Year-over-year commentary on orders, revenue, adjusted and segment EBITDA, and margin will be discussed on an organic basis unless specified otherwise [4]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the available content. Company Strategy and Development Direction and Industry Competition - The company will make forward-looking statements about its performance based on current perspectives, with no obligation to update these statements in the future [4]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges that actual results may differ materially due to risks and uncertainties as described in SEC filings [4]. Other Important Information - The conference call is being recorded, and participants are in a listen-only mode [2]. Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the available content.

4Q & Full Year 2024 Financial Results January 22, 2025 © 2025 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 Caution concerning forward-looking statements: Certain statements contained in this presentation may constitute "forward-looking statements" that involve risks and uncertainties. These statements by their nature address matters that are uncertain to different degrees. Forward-looking statements pr ...

GE Vernova (GEV) shares are falling in premarket trading Wednesday after the energy company reported worse-than-expected fourth-quarter results. The company reported net income of $484 million, or $1.73 per share, on revenue of $10.56 billion. Analysts polled by Visible Alpha expected a profit of $634.5 million, or $2.30 per share, on revenue of $10.74 billion. GE Vernova's wind segment reported earnings before interest, taxes, depreciation and amortization (EBITDA) of just $19 million, with the segment lo ...

Financial Performance - GE Vernova's 2024 orders increased by 7% organically to $44.1 billion, driven by strong growth in Power and Electrification equipment and double-digit services growth in each segment[2] - 2024 revenue grew by 5% to $34.9 billion, with organic growth of 7%, supported by higher services and equipment volume and positive pricing across all segments[2] - Net income for 2024 was $1.6 billion, a significant improvement of $2.0 billion year-over-year, with a net income margin of 4.5%, up 590 basis points[3] - Adjusted EBITDA for 2024 reached $2.0 billion, with an adjusted EBITDA margin of 5.8%, reflecting a 340 basis points improvement[3] - Cash from operating activities in 2024 was $2.6 billion, an increase of $1.4 billion year-over-year, and free cash flow was $1.7 billion, up $1.3 billion[3] - Net income for 2024 was $1.559 billion, a significant improvement from a net loss of $474 million in 2023[26] - Cash, cash equivalents, and restricted cash increased to $8.205 billion at the end of 2024, up from $1.551 billion in 2023[27] - Adjusted EBITDA for 2024 increased by 85% to $1.079 billion for Q4 and 152% to $2.035 billion for the full year, with margins improving by 440 bps and 340 bps respectively[38] - Adjusted organic EBITDA for 2024 increased by 85% to $1.123 billion for Q4 and 99% to $2.160 billion for the full year, with margins improving by 440 bps and 290 bps respectively[43] - Free cash flow decreased by 65% to $572 million in Q4 2024 but increased significantly to $1.701 billion for the full year 2024, compared to $442 million in 2023[46] Segment Performance - Power segment orders in 2024 increased by 28% organically to $21.8 billion, driven by strong demand for Gas Power equipment and double-digit services growth[4] - Wind segment orders in 2024 decreased by 38% organically to $7.1 billion, primarily due to lower Onshore Wind equipment, but EBITDA losses improved by $0.4 billion[4] - Electrification segment orders in 2024 increased by 19% organically to $15.7 billion, driven by growing demand for grid equipment and services[4] - Orders in Q4 2024 increased by 122% organically to $4.8 billion, driven by higher demand for grid equipment and services[24] - Revenues in Q4 2024 grew by 11% (12% organically) to $2.2 billion, driven by higher volume and price at Grid Solutions[24] - Segment EBITDA in Q4 2024 was $0.3 billion with a margin of 13.0%, up 440 basis points (500 basis points organically)[24] - Full-year 2024 orders increased by 19% organically to $15.7 billion, driven by higher demand for grid equipment and Electrification services[25] - Full-year 2024 revenues grew by 18% (both GAAP and organically) to $7.5 billion, led by Grid Solutions[25] - Full-year 2024 Segment EBITDA was $0.7 billion with a margin of 9.0%, up 530 basis points (520 basis points organically)[25] - Electrification segment organic revenues grew by 12% in Q4 2024, with organic EBITDA increasing by 76% and margin improving by 500 basis points[34] - Wind segment organic revenues grew by 21% in Q4 2024, with organic EBITDA turning positive and margin improving by 1,100 basis points[34] - Power segment organic revenue increased by 7% to $17.947 billion in 2024, with EBITDA growing 24% to $2.310 billion and EBITDA margin improving by 180 bps to 12.9%[36] - Wind segment organic revenue decreased by 1% to $9.741 billion in 2024, but EBITDA improved by 42% to -$536 million, with EBITDA margin increasing by 380 bps to -5.5%[36] - Electrification segment organic revenue grew 18% to $7.525 billion in 2024, with EBITDA increasing significantly to $698 million and EBITDA margin improving by 520 bps to 9.3%[36] - Total organic revenues increased by 7% to $34.771 billion in 2024, with equipment organic revenues growing 5% to $18.880 billion and services organic revenues increasing 8% to $15.890 billion[37] Future Guidance and Strategy - GE Vernova reaffirmed its 2025 financial guidance, projecting revenue of $36-$37 billion, high-single digits adjusted EBITDA margin, and free cash flow of $2.0-$2.5 billion[6] - The company invested $0.3 billion in R&D in 2024 to advance breakthrough energy transition technologies[11] - The company provided 2025 guidance for free cash flow (Non-GAAP) but cannot reconcile it to GAAP due to uncertainty in timing for capital expenditures[47] - GE Vernova's capital allocation plans include dividends, share repurchases, acquisitions, and organic investments[54] - The company aims to meet sustainability goals and address market expectations and governmental requirements[54] Operational and Market Risks - GE Vernova's forward-looking statements are subject to uncertainties, with actual results potentially differing materially from projections[51] - Risks include supply chain disruptions, geopolitical factors, product quality issues, and changes in government policies impacting energy demand[54] - The company's ability to innovate, compete, and meet customer demands is critical to its success[54] - Cybersecurity breaches and legal or regulatory changes could impact GE Vernova's operations and financial results[54] Company Overview and Mission - GE Vernova operates in Power, Wind, and Electrification segments, supported by accelerator businesses, with 75,000 employees across 100 countries[56] - The company's mission focuses on delivering affordable, reliable, sustainable, and secure energy, emphasizing decarbonization and electrification[57] Investor Information - GE Vernova's website contains significant financial and investor information, including updates and new postings[52] - Additional financial information is available under "Reports and Filings" on the company's investor website[53]