GE Vernova operationally and financially ready to spin off from
- GE Vernova reaffirms 2024 financial guidance, presents its 2025 financial guidance and outlook by 2028
- Building financial momentum with significant adjusted EBITDA* and free cash flow* growth ahead
-
Debuting GE Vernova’s sustainability framework and lean operating system while investing
$1 billion in R&D annually, creating value for all stakeholders
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GE Board member and GE Vernova Non-Executive Chair
GE Vernova CEO
The GE Vernova leadership team will present its strategy and financial outlook, including across its three segments - Power, Wind, and Electrification - highlighting how GE Vernova is:
- Purpose-built to electrify and decarbonize, serving the vital energy transition market with multi-decade growth.
- Executing with sustainability, innovation and lean at our core.
- Delivering disciplined growth to drive margin expansion, higher free cash flow*, and effective capital allocation.
Financial Outlook
Today, GE Vernova reaffirms its 2024 guidance and outlines its 2025 guidance and outlook by 2028:
Financial Metric |
2024 Guidance |
2025 Guidance |
Outlook by 2028 |
Revenue |
|
Mid-single digit organic revenue growth* |
Mid-single digit organic revenue growth* |
Adjusted EBITDA Margin* |
Mid-single digit (high-end) |
High-single digit (low-end) |
10% |
Free cash flow* |
|
|
90-110% conversion |
Capital Allocation Framework
GE Vernova is committed to maintaining an investment grade credit rating, and its capital allocation framework includes:
- Organic investments
- Capital return to shareholders
- Inorganic growth optionality
Sustainability Framework
GE Vernova’s sustainability framework helps to deliver innovative technologies to create a more sustainable electric power system. It comprises four pillars, outlined on GE Vernova’s new sustainability website: electrify, decarbonize, conserve, and thrive.
Event Webcast
GE Vernova will broadcast the event live via webcast today starting at
GE Vernova CEO
Additional Information
GE Vernova is expected to spin off from
Additional Financial Information
Additional financial information can be found on the Company’s website: www.gevernova.com/investors.
The Company website at www.gevernova.com/investors, as well as GE Vernova’s LinkedIn and other social media accounts, contains a significant amount of information about GE Vernova, including financial and other information for investors. GE Vernova encourages investors to visit these websites from time to time, as information is updated, and new information is posted.
Non-GAAP Financial Measures
In this document, the Company sometimes uses information derived from consolidated financial data but not presented in its financial statements prepared in accordance with
2024 AND 2025 GUIDANCE AND 2028 OUTLOOK
Free cash flow (non-GAAP) ($ in millions) |
|
|
|||||
For the years ended |
2024E |
2025E |
|||||
Cash from (used for) operating activities (GAAP) |
$ |
1,500-1,900 |
$ |
2,000-2,600 |
|||
Add: gross additions to property, plant and equipment and internal-use software |
(800 |
) |
(800 |
) |
|||
Free cash flow (Non-GAAP) |
$ |
700-1,100 |
$ |
1,200-1,800 |
We cannot provide a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measure for free cash flow* conversion in the 2028 outlook without unreasonable effort due to the uncertainty of the costs and timing associated with potential restructuring actions and the impacts of depreciation and amortization.
Adjusted EBITDA margin (Non-GAAP)
We cannot provide a reconciliation of the differences between non-GAAP expectations and the corresponding GAAP measure for Adjusted EBITDA margin* in the 2028 outlook without unreasonable effort due to the uncertainty of the costs and timing associated with potential restructuring actions and the impacts of depreciation and amortization.
*Non-GAAP Financial Measure
Forward-looking Statements
This document contains forward-looking statements – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements often address GE Vernova’s (Company) expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or “range.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about planned and potential transactions, including GE’s planned spin-off of GE Vernova; the impacts of macroeconomic and market conditions and volatility on the Company’s business operations, financial results and financial position and on the global supply chain and world economy; its expected financial performance, including cash flows, revenues, organic growth, margins, earnings and earnings per share; the Company’s credit ratings and outlooks; its funding and liquidity; its business’ cost structures and plans to reduce costs; restructuring; goodwill impairment or other financial charges; or tax rates.
For GE Vernova, particular areas where risks or uncertainties could cause its actual results to be materially different than those expressed in its forward-looking statements include:
- The Company’s success in executing planned and potential transactions, including GE’s plan to pursue a spin-off of GE Vernova;
- Changes in macroeconomic and market conditions and market volatility, including risk of recession, inflation, supply chain constraints or disruptions, interest rates, the value of securities and other financial assets, oil, natural gas and other commodity prices and exchange rates, and the impact of such changes and volatility on the Company’s business operations, financial results and financial position;
-
Global economic trends, competition and geopolitical risks, including impacts from the ongoing geopolitical conflicts (such as the
Russia -Ukraine conflict and conflict in theMiddle East ), demand or supply shocks from events such as a major terrorist attack, natural disasters or actual or threatened public health pandemics or other emergencies, or an escalation of sanctions, tariffs or other trade tensions, and related impacts on the Company’s business’ goal supply chains and strategies; - Actual or perceived quality issues or safety failures related to the Company’s complex and specialized products, solutions and services;
- Market developments or customer actions that may affect the Company’s ability to achieve its anticipated operational cost savings and implement initiatives to control or reduce operating costs;
- Significant disruptions in the Company’s supply chain, including the high cost or unavailability of raw materials, components, and products essential to its business, and significant disruptions to its manufacturing and production facilities and distribution networks;
- The Company’s capital allocation plans, including the timing and amount of dividends, share repurchases, acquisitions, organic investments, and other priorities;
- Downgrades of the Company’s credit ratings or ratings outlooks, or changes in rating application or methodology, and the related impact on the Company’s funding profile, costs, liquidity and competitive position;
- Shifts in market and other dynamics related to decarbonization;
- The amount and timing of the Company’s cash flows and earnings, which may be impacted by macroeconomic, customer, supplier, competitive, contractual and other dynamics and conditions;
- Actions by the Company’s joint venture arrangements, consortiums, and similar collaborations with third parties for certain projects that result in additional costs and obligations;
- Any reductions or modifications to, or the elimination of, governmental incentives or policies that support renewable energy and energy transition innovation and technology;
- The Company’s ability to develop and introduce new technologies to meet market demand and evolving customer needs;
- Changes in law, regulation or policy that may affect the Company’s businesses, such as trade policy and tariffs, regulation and incentives related to climate change (including the impact of the Inflation Reduction Act and other policies), environmental, health and safety laws, and the effects of tax law changes;
- The impact related to information technology, cybersecurity or data security breaches at GE Vernova or third parties; and
-
The other factors that are described in the “Risk Factors” section of GE Vernova’s Form 10 filed with the
SEC and any updates or amendments it makes in future filings.
These and other uncertainties may cause the Company’s actual future results to be materially different than those expressed in its forward-looking statements. GE Vernova does not undertake to update its forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
About
About GE Vernova
GE Vernova is a planned, purpose-built global energy company that includes Power, Wind, and Electrification businesses and is supported by its accelerator businesses of
GE Vernova’s mission is embedded in its name – it retains its legacy, “GE,” as an enduring and hard-earned badge of quality and ingenuity. “Ver” / “verde” signal Earth’s verdant and lush ecosystems. “Nova,” from the Latin “novus,” nods to a new, innovative era of lower carbon energy. Supported by the Company Purpose, The Energy to Change the World, GE Vernova will help deliver a more affordable, reliable, sustainable, and secure energy future. Learn more: GE Vernova’s website and LinkedIn. www.gevernova.com
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GE Vernova Investor Contact
631.662.4317
M.Lapides@ge.com
GE Investor Contact
617.443.3400
swinoker@ge.com
GE Vernova Media Contact
518.227.2463
adam.tucker@ge.com
GE Media Contact
202.304.6514
marykate.nevin@ge.com
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