GE Vernova Reports Profitable Quarter for First Time as Standalone Company

GE Vernova (GEV) reported a quarterly profit as a standalone company for the first time Wednesday in the energy company’s second report since completing its split from GE Aerospace (GE) earlier this year.

While revenue rose just 1% year-over-year to $8.2 billion, GE Vernova posted a profit of $1.28 billion, compared with a $149 million loss the company said it posted in the second quarter of 2023, when it was still part of the General Electric conglomerate. Revenue nearly met expectations of $8.24 billion, while analysts projected a much smaller profit of $268.4 million, according to estimates compiled by Visible Alpha.

“GE Vernova delivered another strong quarter with EBITDA margin expansion across all segments and substantial cash improvement,” GE Vernova Chief Executive Officer (CEO) Scott Strazik said. “Global electrification and decarbonization trends continue to drive demand for our products and services, and we are delivering value for our stakeholders.”

GE Vernova Sees Wind Segment ‘Approaching Profitability’ by Year End

Two of GE Vernova’s three divisions are profitable, its power and electrification segments, while the company has said it expects the wind power generation division to be “approaching profitability” by the end of the year.

Revenue decreased for the wind segment 21% to $2.06 billion, but the division came closer to being profitable than it did a year ago, with earnings before interest, taxes, depreciation, and amortization (EBITDA) coming out to a $117 million loss, much smaller than last year’s loss of $259 million.

The wind segment has been negatively impacted in recent weeks after a broken wind turbine blade washed up on a beach in Massachusetts, closing beaches as the debris was cleaned up. Strazik told Barron’s Wednesday that the company has identified a manufacturing issue that caused the blade to detach from the turbine.

GE Vernova shares essentially flat at $170.50 about 30 minutes before the opening bell Wednesday.