How do GE Vernova's expenses compare year-over-year?

GE Vernova's operating expenses have shown a general upward trend over the past year, reflecting the company's strategic investments and operational changes to support its growth initiatives. 1. **Total Operating Expenses Growth**: GE Vernova's operating expenses have grown by approximately 3.9% annually, reaching 14.9% of operating margin by FY33. This indicates a strategic expansion phase where the company is investing in growth opportunities. 2. **Segmental Analysis**: Within GE Vernova, the Power segment has seen significant increases in revenue and orders, particularly in Gas Power and Hydro Power equipment, which has led to a 27% year-over-year increase in orders. This suggests that the company's focus on core power segments is paying off, and associated expenses are likely increasing to support operational and strategic needs. 3. **Service Component Emphasis**: The Services segment constitutes a crucial part of GE Vernova's revenue, accounting for over 45% of total revenue. The company has reported strong growth in service orders, driven by Power and Electrification. The emphasis on services likely involves higher operational expenses, especially in areas like maintenance, upgrade, and repair services. 4. **Wind Segment Challenges**: The Wind segment, although facing challenges with canceled offshore wind equipment orders, has seen a notable decrease in revenue and orders year-over-year. This segment's expenses may be under pressure due to lower revenue and operational scale. 5. **Electrification Segment Growth**: The Electrification segment has experienced a 19% year-over-year increase in revenue, driven by strong demand for transformers, switchgear, and circuit breakers. This growth is likely accompanied by increased expenses to support production, research, and development to meet market demands. In summary, GE Vernova's operating expenses are on an upward trajectory, primarily driven by strategic expansions in key segments like Power and Electrification, and service-oriented components. The Wind segment presents a challenge with decreased orders, potentially impacting its expense structure. Overall, the company's focus on growth areas and operational efficiency is reflected in its increasing expenses.