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GE Vernova (NYSE:GEV) +2.4% in Thursday’s trading to a new all-time intraday high, reversing an early 4.5% decline, after lowering guidance for Q3 earnings but reaffirming its full-year outlook.
For Q3, GE Vernova (GEV) said it still expects solid organic revenue growth from a year ago with adjusted EBITDA relatively flat Y/Y due to additional costs in its Wind segment stemming from the recent broken Offshore Wind turbine blade events.
GE Vernova (GEV) now expects the Wind segment will generate a Q3 EBITDA loss of ~$300M given the costs, despite a fifth straight quarter of profitability in Onshore Wind, and turn “modestly profitable” in Q4.
In the Q2 earnings conference call in July, the company had said it expected “stronger” adjusted EBITDA Y/Y but that it was expected to decline Q/Q, with EBITDA in the Wind business improving and approaching profitability this year.
For the full year, GE Vernova (GEV) reaffirmed FY 2024 guidance for revenues trending towards the higher end of $34B-$35B, adjusted EBITDA margin of 5%-7%, and free cash flow of $1.3B-$1.7B, as incremental strength in its Power and Electrification segments, with both trending near the higher end of EBITDA margin guidance, offsets additional costs in the Wind segment.
