The following is a summary of the GE Vernova, Inc. (GEV) Q1 2024 Earnings Call Transcript:
Financial Performance:
GE Vernova reported Q1 orders worth $9.7 billion, expanding their backlog to $116 billion.
Organic revenue growth of 5%.
EBITDA margins expanded by 470 basis points year-over-year across all segments.
Free cash flow improved over last year.
Business Progress:
Successful launch as an independent entity with increasing dialogues with customers and policymakers about decarbonization.
Over 800 Kaizen events executed in Q1 '24 leading to significant improvements in safety, cost, quality and delivery.
Increase in Power Services orders and a 75% year-on-year growth in equipment orders.
'Electrification' segment saw significant demand with order levels double current quarter's revenue.
With EBIT margins anticipated to hit mid-single digits in 2024, the company is experiencing margin expansion due to its increased backlog in electrification projects.
The ongoing development of a 15.5-megawatt offshore wind product expected to run by end of 2025.
Orders for electrification largely based in Europe, while the company sees great potential to expand into North America.
Framework agreements being secured for future heavy-duty equipment capacity for utility customers.
Aims at playing a pivotal role in energy transitions, focusing on incrementally adding to its offshore wind backlog.
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