GE Vernova rises despite worse-than-expected results 📊

GE Vernova (GEV.US) reported Q4 2024 results that came in weaker than expected. Consequently, in early pre-market trading, the company’s stock fell. However, it ultimately rose by nearly 2% at the session's opening, setting new highs at $432.

The company has been in a strong upward trend since mid-2024. Source: xStation

GE Vernova is a spin-off from General Electric, focusing on developing new technologies for energy production. The company has been listed on the U.S. stock exchange since April 2024, and its market capitalization has grown by 230% since its debut.

Today’s published results were below market expectations in all key areas. The earnings per share (EPS) result was particularly disappointing, as the company reported a 30% lower EPS than expected. Despite this, on a year-over-year basis, GE Vernova continues to improve its performance, recording a 5% increase in revenue (9% in non-GAAP terms). Adjusted EBITDA came in at over $1 billion, nearly doubling compared to 2023. As a result, key margins also improved: adj. EBITDA margin reached 10.2% (compared to 5.8% a year earlier), while the net profit margin was 4.6% (up from 2% a year earlier).

The company also reported a 20% increase in orders in Q4 and 25% for the entire year of 2024, with orders valued at $6.55 billion (in Q4) and $21.76 billion (in 2024). However, the offshore wind power segment remains problematic, and the company does not plan to accept new orders in this segment until it becomes profitable.

Q4 2024 RESULTS

• EPS: $1.73, forecast: $2.42
• Revenue: $10.56 billion, forecast: $10.71 billion
  • Revenue from Energy Sector: $5.43 billion, forecast: $5.47 billion
  • Revenue from Wind Sector: $3.11 billion, forecast: $3.09 billion
  • Revenue from Electrification Sector: $2.18 billion, forecast: $2.14 billion
• Net Profit: $484 million, forecast: $616.1 million
• Adjusted Free Cash Flow: $572 million, forecast: $594.7 million