GE Vernova Mixed Q4: Revenue Misses, But Orders Surge 22% Amid Strong Electrification Demand

GE Vernova Inc. GEV shares are trading higher after the company reported fourth-quarter 2024 results and reaffirmed its 2025 outlook.

The company reported revenue growth of 5% year-over-year to $10.559 billion and +9% organically, missing the consensus of $10.78 billion.

The company achieved orders totaling $13.2 billion, reflecting a 22% organic increase, ~1.3 times revenue, driven primarily by Power and Electrification equipment.

Earnings per share for the quarter were $1.73, compared to $0.72 a year ago, missing the consensus of $2.55.

Adjusted EBITDA margin expanded by 440 bps to 10.2% and by 440 bps to 10.6% on an organic basis, with Adjusted EBITDA of $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 margins were up 60 bps to 14.9%.

Wind revenue was $3.109 billion (+20% YoY), and Orders reached $2.031 billion (-41% YoY). Segment EBITDA turned modestly profitable with a 0.6% margin, up 1,180 basis points, driven by Onshore Wind’s best quarter in three years and reduced Offshore Wind losses.

Electrification revenue was $2.181 billion (+11% YoY). Orders gained 118% YoY to $4.786 billion, driven by higher demand for grid equipment and services. Segment EBITDA margin rose to 13%, up 500 basis points organically.

Related: What’s Going On With GE Vernova (GEV) Stock Ahead Of Q4 Earnings?

Cash from operating activities for the fiscal 2014 totaled $2.583 billion, compared to $1.186 billion a year ago. Free cash flow stood at $1.701 billion.

At the end of the quarter, cash balance increased to $8.2 billion, up from $7.4 billion in the third quarter of 2024 and $4.2 billion at the April 2, 2024, spin-off.

In the fourth quarter of 2024, GEV authorized a $6 billion share repurchase, buying 8,000 shares in December 2024.

“GE Vernova built a strong foundation in 2024 with solid orders and revenue growth, as well as significant margin expansion and cash generation. We saw strength in Power and Electrification and improvement in Wind, while growing our equipment backlog at better margins,” stated GE Vernova CEO Scott Strazik.

2025 Outlook: GE Vernova reaffirms its 2025 outlook with $36 billion – $37 billion in revenue versus a consensus of $36.88 billion, a high single-digit adjusted EBITDA margin, and $2 billion – $2.5 billion in free cash flow.

GE Vernova expects mid-single-digit organic revenue growth and a 13%-14% EBITDA margin for Power. Wind is projected to see a mid-single-digit decline in organic revenue with $200 million – $400 million in segment EBITDA losses. Electrification anticipates mid-to-high-teens organic revenue growth and an EBITDA margin of 11%-13%.

Price Action: GEV shares traded higher by 1.08% at $420.50 premarket at the last check on Wednesday.