The American energy giant GE Vernova, born from the split of General Electric (GE) into three independent entities in April 2024, released mixed results for the fourth quarter of its 2024 fiscal year. Despite a 5% increase in revenue, reaching $10.56 billion, the net profit of $484 million fell short of analysts’ expectations.
According to FactSet, the consensus projected a profit of $707 million and a diluted earnings per share of $2.30. However, the final figure was $1.73 per share, marking a notable deviation from expectations.
Significant Growth in Orders
Despite this disappointment, GE Vernova recorded a remarkable surge in orders, totaling $13.2 billion, a 22% increase compared to the same period in 2023. This performance was primarily driven by increased demand for equipment in the energy and electrification sectors, further solidifying the group’s market position.
The company’s medium-term ambitions remain robust, with projected revenues for the current fiscal year estimated between $36 billion and $37 billion. Last December, the company also announced ambitious goals through 2028: revenues nearing $45 billion and cumulative cash flow of $14 billion over this period.
Analysis of Business Segments
The Power segment, which encompasses activities related to hydraulic, nuclear, gas, and steam energy, saw its revenue decline by 3% to $5.43 billion. This drop was attributed to an unfavorable service calendar compared to a particularly active end of 2023. However, the division’s orders increased by 20%, reaching $6.55 billion.
The Electrification division benefited from strong demand for energy grids and storage solutions. Its quarterly revenue grew by 11% to $2.18 billion, while orders soared by 118% to $4.79 billion.
In the Wind segment, which focuses on onshore and offshore wind energy, revenues rose by 20% to $3.11 billion. However, orders plummeted by 41%, mainly due to the absence of large orders comparable to those received in the fourth quarter of 2023.
2025 Outlook
GE Vernova continues to emphasize its strengths, including a solid order book and optimistic financial forecasts. For 2025, the group maintains its revenue projections and aims for cash flow between $2 billion and $2.5 billion.
The company also appears poised to capitalize on developments in the global energy market, particularly through innovative solutions and greater diversification of its activities.
