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GE Vernova (GEV) Q3 Earnings call transcript Oct 23, 2024

Daily EarningsMonday, Oct 28, 2024 8:27 pm ET

1min read

GEV --

As GE Vernova presented its third-quarter earnings for 2024, the call highlighted significant growth and confidence in the company's future. Scott Strazik, the CEO, emphasized the company's role in the expansion and decarbonization of the electric power system, showcasing GE Vernova's commitment to sustainability and its impact on the world.

Key Themes and Trends

The call underscored the company's growth trajectory, with a focus on expanding capacity in the electric power system and increasing efficiency in various segments. GE Vernova's Power segment, led by Gas Power, reported substantial growth in orders and revenue, demonstrating a strong demand for gas turbines and services. The company is optimistic about the potential for higher demand in the future, with expectations of delivering between 70 to 80 heavy-duty gas turbines per year starting in 2026.

Electrification is another key area of growth, with the segment delivering a 24% revenue increase in the quarter. This growth is driven by the increasing need for grid equipment, particularly in the U.S., and the company's ability to meet this demand through its strong services and product offerings. GE Vernova aims to more than triple its backlog by the end of 2024, positioning itself for continued success in this sector.

Key Investor Questions

Analysts asked about the company's plans for onshore wind, particularly regarding the pace of reducing backlog and the impact of new customers, such as hyperscalers, entering the market. GE Vernova's management expressed cautious optimism, acknowledging the challenges but highlighting the potential for growth and improved profitability in the onshore wind segment.

Trends within the Sector

The call also provided insights into broader trends within the sector, with a focus on the growing demand for electrification and the role of gas power in the transition to a more sustainable energy system. GE Vernova's strong performance in these areas underscores its strategic position in the market and its ability to capitalize on these trends.

Sentiment and Outlook

The tone of the call was positive, with executives expressing confidence in the company's ability to navigate challenges and capitalize on opportunities. The company's focus on sustainability, innovation, and lean operations was evident throughout the call, positioning GE Vernova for continued success in the evolving energy landscape.

In conclusion, GE Vernova's third-quarter earnings call highlighted the company's strong performance and optimistic outlook for the future. With a focus on sustainability, growth, and innovation, GE Vernova is well-positioned to capitalize on the trends shaping the energy sector and deliver value to its stakeholders.

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