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]
GE Vernova Inc.(GEV) - 2024 Q4 - Annual Results