GE Vernova Inc. delivered strong third-quarter results, with adjusted EBITDA rising to $243 million, up from $205 million the previous year. However, the company faced setbacks in its wind segment, which recorded a negative EBITDA of $317 million, worsening from negative $225 million a year earlier. This decline was primarily driven by incremental contract losses of approximately $700 million in the Offshore Wind division, partly offset by a $300 million gain from a canceled offshore project.
The company's wind segment revenues remained flat at $2.9 billion, with a 19% decline in orders to $1.7 billion, attributed to weaker Onshore Wind equipment orders outside North America. Additionally, GE Vernova experienced turbine blade damage at the Vineyard Wind project in the US and further blade issues during the commissioning of the Dogger Bank project.
In response to these challenges, GE Vernova is implementing remediation plans, including revised project timelines and quality control improvements. The company expects these efforts to result in significant improvements in its offshore wind operations moving forward.
Overall, GE Vernova reported a net loss of $99 million, an improvement from the $185 million loss recorded a year earlier. Total orders grew by 17% organically to $9.4 billion, and total revenue increased by 10% organically to $8.9 billion. CEO Scott Strazik highlighted the company's growth in services, margin expansion in Power and Electrification, and strong cash generation.
For 2024, GE Vernova's full-year guidance targets revenue towards the upper end of $34 billion-$35 billion, with an adjusted EBITDA margin of 5%-7%. The wind segment is expected to maintain flat organic revenue and improve EBITDA by nearly 50%.
