GE Vernova Posts Loss in First Results as Standalone Company

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Published April 25, 2024
CEO of GE Vernova Scott Strazik (2nd R) ring the opening bell at the New York Stock Exchange (NYSE) April 2, 2024, in New York City

TIMOTHY A. CLARY / AFP via Getty Images

Key Takeaways

  • GE Vernova on Thursday released its first quarterly results since being spun off to complete General Electric's recent transition to three standalone companies.
  • GE Vernova posted a $106 million loss in the first quarter as some aspects of its energy business have struggled to become profitable.
  • Earlier this month, GE Vernova split from GE Aerospace, with GE HealthCare having been spun off last year.

GE Vernova (GEV) on Thursday posted a quarterly loss in its first earnings report since the separation of General Electric into three companies was completed earlier this month.

GE Vernova failed to turn a profit on $7.26 billion in revenue, reporting a net loss of $106 million, or 47 cents per share. However, revenue rose 6% from the $6.82 billion it reported in the first quarter of 2023, while its loss narrowed from $346 million, or $1.15 per share.

"With an encouraging start to the year, we are executing our financial strategy to deliver disciplined revenue growth with stronger profitability and free cash flow. We expect cash generation to improve meaningfully every quarter this year, in line with our typical seasonality," GE Vernova Chief Financial Officer Ken Parks said. “As we execute this strategy, we will focus on strategic capital allocation and remain committed to maintaining our investment-grade balance sheet.”

The power and electrification segments are profitable, but GE Vernova's wind division, which recorded a 6% year-over-year revenue decline, has dragged down the other sectors.

GE Vernova affirmed its 2024 guidance, projecting total revenue of $34 billion to $35 billion, while also expecting the wind segment to be "approaching profitability" by the end of the year.

Analysts have largely been positive about GE Vernova's outlook since the split, saying the company could be a long-term beneficiary of increased demand for electricity thanks to the high power demands of data centers and artificial intelligence (AI) technology, along with higher demand for renewable energy methods as countries around the globe work to cut greenhouse gas emissions.

The former divisions of the one-time conglomerate are all standalone companies as of earlier this month, when GE Vernova split from GE Aerospace (GE), while GE HealthCare (GEHC) was spun off last year. GE Aerospace reported earnings earlier this week, with GE HealthCare set to report Tuesday.

GE Vernova shares were 0.3% lower to $145.72 as of 11:33 a.m. ET Thursday.

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  1. GE Vernova. "GE Vernova Reports First Quarter 2024 Financial Results."

  2. GE HealthCare. "GE HealthCare to Announce First Quarter 2024 Results on April 30, 2024."

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