Wed, Jul 24, 10:37 AM (45 days ago)
GE Vernova Inc.'s Q2 2024 financial report highlights several key points: 1. **Financial Performance**: The company reported total revenues of $8.2 billion, a slight increase from Q2 2023. Net income surged to $1.3 billion, driven by a $0.9 billion pre-tax gain from the sale of part of its Steam Power nuclear activities to EDF and a $0.3 billion arbitration refund. Adjusted EBITDA was $0.5 billion, reflecting a significant improvement. 2. **Segment Performance**: - **Power**: Revenues increased by 8% to $4.5 billion, with EBITDA up 32%, driven by Gas Power services. - **Wind**: Revenues declined by 21% to $2.1 billion, but EBITDA improved due to cost reductions and better pricing. - **Electrification**: Revenues grew by 19% to $1.8 billion, with a notable EBITDA increase due to higher volume and productivity. 3. **Cash Flow and Liquidity**: Operating cash flow was $0.5 billion, a significant improvement from a negative cash flow in Q2 2023. The company ended the quarter with $5.8 billion in cash, bolstered by proceeds from the EDF sale and arbitration refund. 4. **Spin-Off and Separation Costs**: Post spin-off from GE, the company recorded separation benefits of $91 million, including a $136 million benefit related to deferred intercompany profit. 5. **Outlook**: The company expects continued growth in its Power and Electrification segments, while focusing on cost management and operational efficiencies in Wind. Overall, GE Vernova demonstrated strong financial health and operational improvements in Q2 2024, positioning itself well for future growth.