GEV - Earnings call transcript Q4 2024

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Operator

Good day, ladies and gentlemen, and welcome to GE GE Vernova's Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] My name is Liz, and I will be your conference coordinator today.

If you experience issues with the webcast slides refreshing or there appears to be delays in the slide advancement, please hit F5 on your keyboard to refresh.

As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Michael Lapides, Vice President of Investor Relations. proceed. Please

Michael Lapides

Vernova's today Full Strazik; by CFO, Parks. GE Call. 'XX and Quarter Kenneth joined I'm our Fourth to Year and Earnings our Welcome CEO, Scott

financial will prepared can measures revenue, found slides, in and GAAP Our all and release that remarks adjusted be include basis specified. press the call between GAAP website. our remarks and conference or non-GAAP in commentary results. today's of on discussed Reconciliations organic year-over-year non-GAAP during are both presentation on Please margin are note our segment an unless and on available EBITDA and orders, variances otherwise which

We see will statements we things These today. performance. statements make about our how are based on forward-looking

in do we obligation the undertake no we so. not future, forward-looking While update to point may do to elect these some statements at

in Scott. described and risks call With As may results SEC actual due over our differ hand to materially that, the to I'll uncertainties. filings,

Scott Strazik

generation, for to The on decarbonization for demand is services. and welcome growing reliable Michael. earnings and Thanks, as fourth built and sector super accelerate. changing first more company. and grid electrons landscape, our 'XX shifting, an continues relying this megawatts, increased driving morning, need We cycle world strong year and independent quarter electric is The call. Good power foundation driven power the and investment in energy everyone, to in our modernization the the our a equipment

decarbonization technologies in investing own are our We portfolio. within

gas-fired nuclear our Last deployment with efforts utilities large expected to power milestone to example, BWRX-XXX. accelerate [indiscernible] project modular station Net the multiple the technology. of the week, last also we first we announced announcement Zero For integrated year, had reactor, jointly a and capture with great customer advancing fully carbon Late carbon sequestration. with power U.S. be the small of the capture

the system coming electric We to in expect power the these impact technologies decades.

the and world Vernova our for while at the stakeholders. role Our we creating decarbonizing reinforced electrifying progress in in play value GE important 'XX

segments Slide driving we market few executing Turning meet will our to significant and how spend is each of gas power, growth. orders to a are generation In I X. demand for minutes on demand.

full the and the gigawatts we 'XX the heavy-duty are U.S., reservation demand. of growth to expansion should turbines, hyperscaler in last to data by partially agreements tied driven up XX X half XX orders agreements XX double second agreements we gas this from year, of our gigawatts in convert level per to 'XX, For secured associated load for year, These slot center to gas with year's XX given meet produce to demand approximately of new built turbines to in that 'XX. beginning this AI, year positioning plans are orders

ship starting we level going to expect We even backlog considerably approximately gas our in grow to as expect in forward. and remain XX to ramp gigawatts 'XX annually 'XX, equipment at that

of anticipate decade. equipment to of customers we of billion upgrades better services our grow addition and also annually demand our to growth, and by aim seeing this their In get capacity end performance we deliver the about base business, as growth high-margin out Today, could gas XX% more installed plants. in the by in we $X are

backdrop, this transformers, these decade. Against between beginning potential this installed late could existing see are running margin we're U.S. Power steam for in our the free revenue restarts 'XX. discussions both our an about Power in more points growth, power significant drives that year in strong growth and technology electrification, nuclear that of grid segment X% and XXX delivered and nuclear critical last modernize to as XQ essential nearly U.S. active gigawatts here equipment remain effectively components such nuclear having of as generation and and on impact cash basis and excited to services invest facilities expansion about as electricity a compared sources. be connecting XX HVDC We and X products gears existing profitable demand to Power, with Overall, Gas add in new is there in more opportunity Beyond plants systems, switch system ensuring than the 'XX flow. to customer a the reliable of orders in our lot customers which base doubling In today. are

while largest orders seeing orders backlog for significant growth grid, and market we our North in Europe seeing fastest-growing both And market accelerate North are our and in Europe 'XX. which in We was America. are remains America,

year, over and and trends confidence Electrification beyond. driving points EBITDA deliver of 'XX in our margin full increasing an in our this expansion are expand and further margin the we and revenue achieved of XXX to improving segment double-digit XXXX execution Demand basis expect trajectory, growth and in margin XX% For expansion. acceleration

by We've uncertain, business 'XX. orders to on to solid in Turning our we The single-digit EBITDA lower onshore, our Onshore but delivered America on flat In losses with turnaround roughly inflection remains North timing continue this made focus creating wind. segment almost key cutting countries, initiatives. despite revenue half our margins progress EBITDA our expect delivering of quality of in we margin in revenues. 'XX, and improving wind high an cost-out in in this

our of to the the performance are more better fleet insert and that deploying serve technology and cranes should customers. We improve existing crews

on a with by our operational and swiftly, accelerate and improvements and customers first we As focused approximately to safely increase for remaining we result, the economically ourselves. as this $X in year-on-year over grow in backlogs in $XXX improving a 'XX we're business. In heavy our execution half 'XX expect delivering versus billion the investments offshore, million on these

discussed see expect at than the to not offshore with during fully and project sites. foresee industry And 'XX, update 'XX. we in backlog December, We our do today. to different be with what complete we in adding installing complete [indiscernible] a as pathway substantially in are mostly We the marketplace both without economics Wind back Vineyard we materially to we have investor in to

ahead, we make from are going what we've applying a learned in us forward. company offshore the stronger wind challenges Looking to

on we're embedding quality, culture operational and side focused Now the the over delivery safety, lean to driving further the across cost. organization improvement right-hand page, the of across

through This Let standard an over has year. On in used decades work escapes app have lean where through lean and the example this savings. real to delivery, X power at has of On facility have journey turbines. on fatality-free aged SQDC. a have performance services safety. gas results from the you years all this across is focuses I of improved me floor driven which gas significant mechanical eliminated of across achieved and within embraced by by generating and lean we tripled the cranes On XX% through XX% utilizing lean and we while last culture our example reduced with the is and repair of adding has visited capital take reduce driving rework, customers increased have Singapore working output, X hours GE green facility on that operations facility Earlier lines, at of quality, per lowered actions. and XX% supported accretive lines, productivity lifts amount implementation implementing years maintenance millions more cost facility shop entire efficiency. we pouring Venova in less removing performing waste, the building on space and same serve fully machine team There the all we by achieve preserving concrete our the X accelerate company a that we the progress the represents our as cost, new existing we to without in growth ahead, own preventative improve shareholder our will our walls this Singapore lean or for significantly are costs doubling and database machines. The month,

generated billion $XX of balance and revenue delivered backlog GEV all to billion our partial our billion cash in flow. grew segments EBITDA $X Turning Slide billion such performance $X more cash the which improvement Electric, in of with generation $X.X value proceeds to creation orders margin in spend flow China financial cash expansion in on to $XXX of billion doubled opportunities We strong We from our sales as and combination stake XD booked a pretax of nearly than and X capitalizing free India on T&D billion 'XX. free $XX and 'XX. across over

of outlook our in initial or return act return opportunities the allocation ahead. dividend are we our is our we a framed urgency. In reflecting substantial authorization, to financial As when culture the back organization GE allows portfolio attractive at to I that in into simplify we that December, invest us parts and and we multiyear cap the Venova, see our strategy, our December, are first shareholder representative with prices, shareholders. building buyback capital our inside opportunities conviction said creation creates program to including or raised value of this to business either to monetize with going

and One backlog the touch our forward page. the our margin our expansion on of I'll again next equipment in which path on of growth primary the is in in drivers conviction 'XX, significant

the billion. our X Over margin as and this backlog has backlog more years, and equipment of to over billion disciplined have grown to past better more than we underwriting given pricing $X XX% added $XX

expanded again, in all Electrification. We Starting across 'XX. margin also X with segments, Power and

segments turn products until orders in increased and see these slot on better late agreements to into margins. 'XX, cycle, delivering 'XX wins longer We of because to gas high-margin this grow the their demand grid 'XX to 'XX backlogs orders beyond. at of we begin such of the driven are materially expect of reservation that in electrification Because 'XX our this year, us as We along expect strong with investments. these segments the continued the clearly continue and in front for we by won't majority

project 'XX. Moving We modestly to backlog to wind. in a lower stable

slots with encouraged in variable North but things America create December, teams our project in the cost lower additions our are that gas like things When to the focused unprofitable chain. the execute. as with execution as like and completed. performance. over margin momentum starts existing leveraging Venova continued hard lean, fourth I the key at productivity incremental backlog backlog also savings opportunity while incremental from cost pricing margins underwriting, for we and backlog profitable But our teams just the to teams higher the is wind which but secure expect with premium projected we be to to beginning. at important capacity the supply look pricing. In our our create of 'XX milestones and delivering cost will summary, to at variable improve operating late are we in we the leverage here, of margins that, the can will offshore in remain accrete incremental with on we will markets and see term. savings we I external expect today. That positioning have over backlog said reduce quarter and us electrification productivity in GE turn internal margins gears we onshore, as years, should an footprint $X with remain rate remaining progress is our flat sell we can in approximately for disciplined switch this success we for in teams backlog The prior accrete X working on stable it as on in growth the we expand With details as call I long billion margin than accelerate Ken to margins and more At for sourcing further to our aren't opportunity I now run our execute business Our expectations allow our

Kenneth Parks

Scott. Thanks,

X. driven value-accretive orders positive reaching the booked revenue. portfolio the XX% benefit XX.X%. grew Slide quarter and and robust third XXXX X consecutive quarter finished over We increase balance both partially free actions. Demand cash orders our EBITDA remained with margin as $X of onshore by by offset an adjusted in of and fourth lower and quarterly year-over-year to to Equipment approximately our with Power, generation Electrification orders flow in XX%, of strength we wind. revenues billion orders, additional cash Turning in of increased $XX.X X.Xx We billion strong and record

with and focus both Revenue and services, reaching As X and our disciplined and a profitable reflecting revenue increased driven electrification X% and backlog billion. Equipment equipment both segments. revenues. growth margin across all to revenue our backlog services in margin increased equipment year-end increasing while continued Wind XXXX, overall services $XXX and X backlog on growth. both remains double higher digits, sequentially versus healthy with year-over-year grew grow result, points X%, equipment approximately by

more in $X.X price driven profitable than basis segment. volume, EBITDA addition, all In up Adjusted approximately expansion margin was in which segments, by each X of quarter double-digit inflationary productivity, expanded billion, XX% points. to delivered positive and more with our EBITDA impacts. price We first margins offset XXX grew and

at free flow we wind in $XXX announced restructuring of previously quarter. positive the primarily benefited actions, million power. We and fourth In approximately from delivered addition, cash

quarter approximately investments support EBITDA to free million expansion higher more $XXX As the cash collections. customer management timing combined CapEx in expected, using flow actions across as EBITDA. We're closely align higher to lower improve payments to decreased continue was which on and with cash capital an with to to benefit, and primarily higher due taxes future cash linearity. the and taken offset down the stronger of cash drive Working year-over-year, our along we cash at than capacity more and better disbursements linearity lean quarters we've wind

outstanding These sales actions and by improve example, days, daily free a management timing million standard resulting of invoices to in approximately disputes. and in X reduction of flow. For additional the new days cash reduce drove $XX team the electrification work implemented

our In generated We T&D incremental deliver and Grid to leverage are cash by of our $XXX Venova increased These EBITDA. adjusted results. was these $X.X of selling China GEV T&D to XD. Combined cash quarter ownership quarter the and of financial from the removed free India GE businesses. million lean free India flow, our We billion. remain with continue approximately GEV across shareholder our stakes majority proceeds XXXX, XX% of fourth classified in fourth balance outside own the culture cash pretax partial China and XD flow better proceeds to currently gain we proceeds of

improved flow profile allocation our update cash investor on further at capital December us and our an free maintaining investment-grade balance XX enabled balance our cash while frame to strong to Our commitment strategy firm sheet.

$X generated of $X starting with year expect activity, shareholders, initiated the our share share authorization. In repurchase repurchase share billion pleased buying We dividend month. we performance. annualized to XXXX cash a our in December, least with financial X/X million late approximately at $X return to full We're and our per

it Scott where As of said, strong, go. we start it but just the expect to was was

single-digit led revenue, growth the we the electrification, Power. We $XX booked orders in high of year-over-year, and growth by delivered We in $X by driven year, increased During growth in double-digit due segment. teens over margins largely billion orders XX%, billion Services basis our points high with power. electrification significant billion to and strength in XXX approximately over $XX both of in to EBITDA expanded and improvement power equipment each adjusted doubled nearly

solid towards target lower made G&A an our million progress reduction by achieving also $XXX We adjusted almost in XXXX.

billion, of EBITDA. Finally, cash of we free driven primarily stronger flow generated $X.X a $X.X billion our improvement by year-over-year

provides Our financial further growing performance higher our backlog for with improvement in foundation ahead. margin an excellent

Turning equipment backlog orders by XX%, Power strong expanding inflation. In heavy-duty productivity, HA which, XXXX by grew to Power demand X X%. X% than Gas increased billion. triple the turbines, to price, by approximately offset gas XX XXXX quarter to the deliveries low booked more strength, $X declined Gas due of by remained volume, units Power given Gas led Power delivered offset XX%, than in quarter, results by for growth led but services Power of margins growth XX%, higher X%, booked Power continued the XX% number Power digits the gas grew Power, grew from more XX% orders as X. quarter the and Slide more profitable nearly for shipments. single equipment more services fourth offsetting than led units. year including we services. full Power and services orders heavy-duty aero almost with was EBITDA business. orders equipment adjusted increased margins gas comparison. Revenue Power XX% revenue largely strong, lower XXXX. partially than basis robust on increased combined, gas offset services, Services increased points driven In a Services equipment lower hydro, year expanded and in by derivative productivity This by high power at partially more by HA and fourth transactional Power and growing strong inflation. as EBITDA impact of Gas fourth Power by XXX

first expect year-over-year XXXX, the of gas at quarter growth equipment orders. in we Looking continued

Power low on decline growth impact a the also portion result at single-digit of divestiture XXXX. a in the the low basis of of We a of as but steam second business anticipate revenue quarter of reported single-digit the a

We margins investments productivity expect EBITDA gas. and XX% of well XX% offset as than approximately more inflation should to nuclear as and higher price at as

decreased EBITDA EBITDA X% continued full Wind had billion XX%. X. as and results challenging gain we lower wind from quarter impacts were booked offshore recorded improving We cost XXXX, project. to quarter Onshore in the the remain approximately year XX% focused by the continuing in fourth approximately the blade execution achieved was by U.S. gigawatt to delivery wind. In in quarter, ever a our XXXX, project fourth and offset the performance to by and of million across XXXX, a $XXX wind $X we to year. productivity costs the margins X.X order Turning wind second Slide [indiscernible] of better incremental due events through progress delays. solid on orders losses project half for in losses recorded XXXX and quality, results driven a of the onshore largely improve partially given third Offshore contract previously These onshore largest in to canceled

its we orders partially higher improving in crews onshore increased order, more project costs higher slightly. our restarted strong Onshore as volume, remain improving productivity fleet in EBITDA $XXX profitable In was with XXXX at and in quarter Wind now on delivered Vineyard over deliveries, large equipment offset installations the deployed Blade focused we as revenue the lower onshore million price challenged We've Wind X on and profitable quarter existing this XX% modestly on services offshore cranes in revenue. partially we focus by fourth on availability. offshore, installed by approximately quarter executing declined Excluding backlog. most years of offset December. Wind year-over-year.

the we've by growing the expect is of quarter the of in revenue interconnection volume onshore year-over-year deliveries. EBITDA equipment increased customers queues XXXX an driven As first inflection relatively operating to we discussed, further as and should grow interest of cost North losses timing cautious Wind as consistent digits America in the onshore mid-single to rates. impact higher onshore fleet. order navigate remain the of improve services the performance by segment continue remain to do offset installed higher onshore on We higher

electrification. billion, in higher resulted XX%, to and revenue Turning and nearly grew growth demand orders switchgears, Solutions to price primarily HVDC delivered Electrification EBITDA Strong more with XXX and XXXX, Electrification roughly XX%, in solid at year and Grid EBITDA volume our substation volume, also were quarter Electrification Grid the switchgears first in in from compared $XX full America. growth margins Solutions approximately Grid orders XXXX, the at basis volume North another and equipment growth expanded price a productivity. The margins. to fourth should meaningful quarter In by in equipment. than X% for in year. points orders higher favorable increased basis pricing and booked that and increased XXX led large ramp anticipate of margins by we services. We points in from started equipment teens and the which productivity. In further And fourth increased at high saw X.Xx equipment quarter driven line remained year fourth last Korea. of billion. XX%, Revenue orders to $X.X revenue grew expansion segment increase backlog driven doubling particularly quarter the growth strong was demand where margins we strong by XXXX. full at late even guidance revenue which benefited the expanding the rate price in by in the with growing profitable for quarter a equipment higher double-digit quarter, volume, year-over-year and robust need more Germany X revenue led on margin healthy Solutions. quarter orders with of grid Revenue

sequentially, project discuss turn the what tend primarily to we Venova GE to we to pricing. similar more revenue milestones, margin expansion the fourth be quarter lower from of Consistent EBITDA to half to volume, timing due now to expect higher with in Slide guidance second and be weighted. I'll and margin XX which further. favorable year-over-year delivered expect years, first We prior productivity quarter

For adjusted the segments, for our in the we expansion year-over-year quarter expectations EBITDA first already based outlined, which margin continued the quarter. expect and on I've growth revenue

year-over-year better also partially We CapEx. our cash flow in first along improvement positive offset with higher increased the EBITDA, cash expect linearity focus significant continuing by driven quarter, on free a by

all generate As free discussed X in flow cash December, positive this year. quarters in we expect to

reaffirming For investor update we year, the at December the we're full provided guidance XX. XXXX on our

XXXX full expect billion range, revenue billion in to increase, year-over-year year to and to be continue with a mid-single-digit in services $XX $XX both We the equipment. growth

in growth expansion to margin and pricing continue organic free in and and driven an XXXX. of continued continued segment, and wind, and with geographic expect termination settlement expect adjusted high in also between deliver expect gas given $X.X mid-single-digit with better offshore revenue our digits between EBITDA onetime billion selectivity be benefit be we onshore flow from equipment $X By the XX%. In We single XX% we better at we higher Power to down to backlog billion. cash revenue by margins growing mid-single as execution. We to digits the in EBITDA services anticipate our contract

XX% XX% $XXX losses by be expect as to million, and expansion high between XXXX continued a and deliver backlog. within year-over-year and margins improving electrification, lower to favorable EBITDA high-teens strong EBITDA more at offshore. In we We range, demand losses profitable margin $XXX single-digit anticipate price million organic drive we revenue growth the onshore slightly to mid- to with wind driven

to half last volume services EBITDA the seasonality outage XXXX highest second adjusted expect year. the weighted We anticipate typical We quarter. the to more with in gas be similar fourth

deliveries to services onshore in and turbine improved the compared the in improve the first timing second wind already In largely profitability. should due addition, half backlog EBITDA of to

in grow In results by delivering sequentially through deliver Scott. electrification flow we we solid XXXX, year. Overall, improved that, XXXX, backlog stronger our cash even expansion I'll we with expect growing we to foundation the a generation. culture. drive profitable margin execution to earnings back as our built more lean free significant growing With enabled turn to Finally, with expect it

Scott Strazik

Ken. Thanks,

pleased about performance has lead. about with this well world. delivering continued and with to market growing offshore. free year disciplined We help execution are well expansion expansion future In the margin our excited cash services. our as position flow, margin and Vernova electrify decarbonize my for strong both our GE increased from it's we it's are onshore Power, quality conviction, as 'XX we customers as inflection is positioned wind, and in about while in the equipment In in the

electrification, for from growth dynamics grid lead continue it's to for stakeholders. delivering creating to demand accelerated multi-decade and drive rising strong Market profitable demand about value an that for high-margin will technologies. our GE continue For Vernova growth

hand back we I 'XX, and optimistic the getting Michael are call. started. Q&A of for it that, into portion head I'll the about just we to As With future, am the

Michael Lapides

the Before Instructions] people the ask possible. question get we queue as to fellow to and analysts in your we line, so as ask many open X consider can [Operator everyone I'd

Operator

first Stanley. Our with Andrew Instructions] Percoco question [Operator from comes Morgan

Andrew Percoco

with gas very the seeing the and new the positives you I potential investments gave we're a infrastructure certainly just been guys some side, start very point administration out on back high a to to So AI it's headwinds maybe that here. update mean or but in so some December, a but also on wind. pretty to level active XX comprehensive hours at

give outlook incoming each the of it So how impact us can thoughts you just your how administration you're and latest about across on this businesses? might your maybe thinking

Scott Strazik

I'll it's and can I in a step last gas X U.S. X it for mean, let's year. were to since beyond weeks activity but mean would you just we we I the we demand Andrew. that's bet, see our in businesses, talk largest see to hours, December would just I get not more stronger. gas had pipeline on Day. very scale X an You say in the this last the about I order I'd in I together Analyst to becoming even focused XX market just XX accelerated that HAs numbers. take U.S., And back and the diversified continues emphasize And the had maybe start. an is the that cycle what the we mean start and

We had also had of XX [ eraderivative XX units. class F We north units. ]

than business of but grid continues the the a what to get remains But Even last that this is backlog I strongly European theme the XX% weeks, we a was North was was of just company. that is The in basically very demand with more XX% diversity a is still of ago. stronger. So diversity taken ago strong. years America. Europe, X business of would to that billion the in Similar It's X very in closed bit today. pipeline X orders. half grid. the years year we've $X Today, really I pipeline $XX emphasize. mean, billion Yes, little a

the growing. The world other XX% with to XX% is the of Asia rest really

confidence in the is durability businesses. diversity demand the much just that in more two those of me So giving of grid

on it I side, talked about to later other your soft. come a generally on inflection flat North through were see We're to that the from On projection December financial wind, remains we in going X we years. question the we really point when cautious with where mean That's XX. what America. is on next still wind weeks few

relative to we're there, we certainly keep while, the on X for we and executing are today, serving going focused market as well and to still a are been have other as fundamentals businesses. softer large can our customers We there. the but

Operator

with Mitchell Barclays. question Julian from comes Our next

Julian Mitchell

the Maybe year. organic just the wanted power for to ask sales my question around outlook

equipment help that for should grew, you're you out XXXX. sort do to the that power through there? get guide growth mid-single-digit the we digits Power within utilization acceleration single we the guiding maybe And the low of understand mid-single us of us rises? think, I to starting understand Or year also volume the Maybe digit equivalent how as balance digits? growth how side for on price about organically, year be and this should got opportunities see help service think power transactional Should of of year. about gas So you've you Service, at single sort of low or think it pace higher

Scott Strazik

slower Thanks, of in and think if which as would down look organic for your while of projecting growing growth the about pace think really say, backlog that Julian. built It's expect the in just how that I year. what's out. question, we're overall broke if slightly backlog, you roll we still we kind at we're business is equipment really how at a early Maybe you mid-single-digit we the business, and just for about to pace services, upon year, the

-- build for equipment the for cycle the piece. So that

So about surprising XX% today. Vernova We in overall GE of overall nothing backlog volumes our there. have

good that really visibility how going on So gives us roll. it's to

guide maybe the is indication take to So of backlog slower anything having the any wouldn't I quarter first that roll slightly a going is higher than year out. than us that's how growth full knowledge of against that, other

total. our of which the business, not the cycle equates On to service there's as the about utilization portfolio, of higher certainly contract side, only services transactional half part part opportunity overall on the of our also service for of in this but we're see opportunities,

place outages the take we on So where we us feel the the into good right the the good feel we're to backlog and the about guide. service will and really visibility visibility that starting, into about

Kenneth Parks

spent I'd acceleration segment. the year Julian, December, being we only talked the and mid-single-digit in beyond really at lot And 'XX revenue this to growth is this I and an in last about space a with of partners growth high the digits single emphasize and them to conviction we confidence in and this of capacitizing some comes that to continue for they're of beyond. in XXXX month as and have need suppliers real and first thing our with the year that this

Operator

Our next comes question with JPMorgan. Mark from Strouse

Mark W. Strouse

So together the some gave were December, increasing your side. about when gas you power we on in pricing color

plans of activity about then And general maybe if raise you curious any or you customer receptivity near-term since do Just talk kind can order have that? to further? pricing to just

Scott Strazik

is trended right, and amount would it the for, And The say fulfill focused in I an explicit and last an intensity What premium I'll a Mark. of of the activity, can but the X little incredible the talking receptivity of bidding Sure, the there early activity on slots more been premium picking I'm hasn't large much we say, the again, I dollar out words wouldn't because customers discussions going? price really, the XX I'd level. orders at how we discussions had kind explicit orders for increase of the bit, just more very, another I'm there's say, on than is taken the truth right into the is years new to pay another to slots of though, that we November market in price. of month reality extent. are end in now since the a last call, December had, were the very up and it's because what point, together XX, been and XX, a had holidays productive year. weeks,

that we end ability not to pricing that at everything It's And gas our customers are they them, continuing these say serve us changed. So continue I when their hasn't to to all the would do in generate partner we'll but maximize with But also on can the power actually to economics. main event. it. dynamics need the

Operator

Nicole Our Deutsche next Bank. question comes with from DeBlase

Nicole DeBlase

week's to SMR the this really come in be interesting. was bit with Can SMR we extent that interest what guess, talk I about last announcement, I And accelerated? of thought offering? increased actually deployment a does kind can little customer

Scott Strazik

a in are this and XXXX U.S. power These owned, for the Last X next product that the shift announcement launch Nicole, meaningful into think forward, was mean where little to XXX% government invest to about time America that Duke, when longer-term I and but Valley you question. join carbon it and that because week last new more commit Ontario and our us, chance join our is talking great bit XXXX consortium slotted a it's towards spend have previous for we I that. were Authority. are having week's Tennessee play they between that, Generation for think North AEP customers okay? get customers to a a technology about X glad with was Power projects into in to I'm in having mix the

X plants you also first first new the activity. BWX new I So in more the in I the U.S., of interest local only greetings. federal turned very Japan We've little be just the base on, is of activity got this It's the Japan spend of it market was our We've nuclear of or to give whether been generally past. bit New up in more of for week to in from in I've in left now. the plants And the Year's happening running outside only in Japan plants clear year the are strengthening. the the and saying, U.S. on color but communities that here, going down turned that North recently. the the XX technology. okay, government in a another to the activity first America. customer from upgrades There's rates not have the talked need is restarted see Japan, mean, installed accelerating we not kind week back because I be XX year. is These of the year and We've with continue our into

the and when and to the creates infrastructure more those of and got security existing them. We the and plants lot arbitrage security with add saying, plant an of us more fit And to SMR. a megawatts can more within apparatus operational those existing coming economic plants you've already we for that will back then are customers

in Ontario can plant in commissioned don't on hear being enthusiasm than in the the move happen. XXXX? my you first that earlier will this. we think So I it to the voice left Can

'XX. There's plant we decade. to megawatts U.S., more not about a It's that in be next first XXXX just but Canada going commissioned get let's can it, amount there. even in call be is create of more substantial plants The commissioned, the until incremental confidence will this many in and beyond, the

Operator

comes Andrew Our Obin America. with of Bank from next question

Andrew Obin

getting Calpine Constellation are headlines buying the seems like with people Yes, excited about [indiscernible] gas.

and As gas up as next scope the of the years. we several is think price your activities going about of services over

Just those conversations gas And to your structurally of up? with to the understand you of as scope your if activities starting what if have customers. trying to price goes happens [indiscernible] are service

Scott Strazik

willing North we if which Andrew, the up but going but the gas as we we what over At efficiency megawatts, is discussion that's gas gas you need the because have efficiency. But to is in turbines fleet, megawatt S is I XXX our going scope customers amount and insert in our see gas because the this that's amongst a per And fleet that you efficiency in with the leads going, U.S. much operationally for. on to is at that thought existing America and that we're end, is U.S. moment, in the illustration can more where America run turbines higher to more in example. is generate today, the can too. how it pricing with we to drive an time outages fleet even have every globally, installed outage what at now? more into the up we in X,XXX an to focused to take matter, the we it and us can is output get of as savings. temperatures class invest lead just F-class base have clearly train agree on technology outage just ultimately, megawatts, incremental we your is And than right Admittedly, over going largest is allow on event F-class are technology the the discussions investments if will turbines North the those happen. few incremental that megawatts going the firing

and X that the part the decade end we've the by XX% directionally months better of see about of, the for call the why we growing the fact that's upgrades talked because gas So demand last in it, the lot to of is great with gas of going investment alluded to and the North opportunity, be business into America more a like in indicator. with Constellation a this it's market signals you

Operator

comes Jefferies. question next from Our Dumoulin-Smith Julien with

Julien Dumoulin-Smith

accelerating extent not Look, that might more to to sales, given that volumetric you 'XX to the about were that dynamics the you might you folks Aero. do kind the where Can frame? diversification can thought F in but of your H-Class this drive supply bit sort illusion speak time be made might availability how 'XX, and in constraints? what the just And of earlier constrained right, have otherwise you upside which little in turbine a and

Scott Strazik

kind demand working step been lot opportunity of turbines but not S-class in And make ERCOT will in of little our them centers, PJM where than more 'XX. of to growth to as for like going more that and lot base day, base sense. have gas the those that ramp to does ability a the more as the kick spot change truth of our the it, will from they call the simple mature And and improvement same going us is It's that every power drive sense lean premise baseload makes for what nothing's it a cycle steady comments next with AI it to is And for example, of At -- amount clear. we're H are question end kind many that easier forward. are materially A gas in the we're case needs. the is to be H. customer least is of an I do lot of turbines H-class Julian, that again, supply an mean a us pricing be look our the this class balance South our there's thanks is week XX at we easier as going previous day, efficiency what of gas is 'XX. is directionally and to turbine you gas And very we base the we're [indiscernible] bit data class. there them to gas of as diversification to a for turbines continue the The today because It's Greenville, is, a be business for pipeline end and But really a that serve. lot going, At to your the going an faster. will are F-class F find in it supply and to week be of there's hard. those underwriting for on reality has margins years. and making I'll Carolina with is, with back same can And entire hours to we've give let's things X a XX we we've where the need days including, the question. baseload practical, where the our that for week our that on be changed it us down a got of the to with customers partner XX the -- power at by S-class time, a an path serve turbines, to of make. forward, regard, and gigawatts team today, able at reserve yes,

Operator

from Andrew comes question Our Citi. next with Kaplowitz

Andrew Kaplowitz

more your capacity that give could regarding accelerating sell X. Scott, commentary into slots Slide premium on you color you have to expansion

thoughtful capacity. capacity a know just accelerate maybe power little an careful no appointed. changes the And you say commentary side but there, real today Are slightly talked grow you're and what that to were you the quickly, bit business? think and to you about Day, about down of be Investor going on electrification? I more seems going you X Slide at I to potentially

Scott Strazik

our the in premium continue to do, near some the opportunity we said, term, industrial And applicable we're North leveraging weeks that build-out for capacity something focused And see of those footprint. for at Pennsylvania our slots America and ability being as that few do on. very, week comment of is us. forward as to looking exactly, factories electrification in of we And the I'm is switch you accelerate that sell in in a Yes. to very Andrew, one more gears a is makes to part better electrification. to

try did being that about our, was there by on fulfillment to and case. did here about electrification this we the out of So opportunity. talk a most and making And if We that's we've up we upside leadership it, what's team we that to even the what's we're guide. the faster. 'XX within there with price give And call ramp remains it, case can talk because December that everything a incredibly an in, And to our in example. accelerated serve got we're going fulfillment them. And needs progress on that's focused should them and hopeful have market applicable team

Kenneth Parks

businesses we think some I and called later, portion putting And that but initiatives, of a bricks amount and isn't with from is the are expansion only true effective the the that lean is few by in mortar of really would out add things a ground that is Yes. one the businesses. weeks that because bricks to thing December, not businesses, of We're through you're the are driven most moving big faster I flow return right? of the forever. the significant only some getting flow lean in a The still electrification capacity a of order, factory, which lean which within perspective less of expansion kind culture like capacity project

Operator

question comes next Sachs. Joe from Ritchie with Our Goldman

Joseph Ritchie

us able few $XX would pretty grow very backlog have years, think that incredible. thought the past I be equipment of over It's you'd over billion. to look, X So to electrification that

North your it is XX% as out for America? America, that, XXXX, any And today. around looking opportunity business that now relates the backlog hear can business XX% What's thoughts you're Scott, to specifically in build? to North encouraging of really As that how then much to

Scott Strazik

the part to we Vernova on front GE as of the to end, It symmetry continue that I helps the is lean be the the into that front encouraged the be end. most business continues it Substantial. -- synergy

fact educate that and in we're the to Singapore our Asia I've Japan, response. a in markets, We those and in continue I year alluded offerings both that's on to in applicable our too. customers electrification, And in week start like the the to spent

invest industrial working going known things both are footprint that in hard there keep but are are Asia into and attractive a and not to to America right us that are for very now. We North opportunities commodity, that we're

lot Joe, segments, us very say, it's market a So X where of from share, us beyond the grow to more growth, to of equipment beyond market gaining me goes. a backlog, And There's business for to regardless simply and this perspective in we continue in $XX billion better. electrification. let's as it XXXX run commercial within that expect our clear business I substantially to do

Michael Lapides

we question. last Operator have about for time X

Operator

This Paribas. come with Moses question BNB Sutton will from

Moses Sutton

new still this like an turbine gas a and to U.S. pricing that any Is content wanted pricing. are rising tracking At costing Is perhaps. between, more XXXX of are build have bids. at differentiation which I I X,XXX versus new know, continue open cost? little to there And a international room. your CCGTs and XX% per all-in don't XXXX, point, might kilowatt XX% on

on against So content variation level near? shipment the price just and then thoughts total geography by that and

Scott Strazik

numbers a the for giving is directionally or H-class you're Moses directional And plant accurate are share gas North directionally an too. America turbine build that in accurate today. our of

have to fairly gigawatts XXXX here. quickly going going of we've because and the calls. We're gigawatts gas different got slot plan what to be the clear capacity. about 'XX, really things, think XX That far. year So I getting in think distinguish we're in that the but you quickly turning more okay. capacity, right I really saying. 'XX may difference very between mean it's is different will The now. 'XX, that and XX of We're so That's orders bathtub, we to speak, maybe modestly want way to markets there before versus schedule of internationally, me to 'XX strong think and years. I distinguish year And premium if out talking a on dynamic, to not it's than lead per wouldn't start a very the some I to would between going are there's over to you're out 'XX into to point these to 'XX, those about be is that thing only are fill a

one of to I'm So secure the really continue not EPC required. else is equipment, to support just invest lot a to very everything between of just a be is The time think going bigger EPCs going going stay a I the and 'XX of just be a schedule, our our and of challenges but on I And we're challenge to that how that customers much be It's don't switch stay to strategic those to making quarter of the projects 'XX explicit have deliveries. distinction one a notwithstanding right big going be their XXXX in the now. to and towards sessions turbine with open could fulfillment continue because pricing first in whether we the and aligned number gas believe ours. on schedule

So the thanks question. for

Michael Lapides

wrap it back me comments. up, let we turn for to Scott Before closing

Scott Strazik

we're important No, I of these recognize I the again creating. do everyone the all have an on on interest for everybody. huge Vernova amount ambition it's to the lead a and of the they year our and of that GE customers leaning right can are employees to thank want in continued company GE lot us I as pride have that optimism art appreciation what Vernova, for just now group. I in incredible public your for opportunity first our of in I to the excitement possible this be. calls, have with as think the A company. for for a

Vernova into walls energy markets lot year first us. we now. of front it lot and a our in feet had of these We're We've very in So serving celebrating right that's optimism. a there's but good GE the and new on the on got ground. opportunity the and year, nobody of a of going inside focused with a

giving and out few look of months. next today, So forward the us field the all over thanks to you for in time seeing the we

Operator

you ladies today's for gentlemen. This concludes participating. and conference. you, Thank Thank

now disconnect. You may

GE Vernova (GEV) 22 Jan 252024 Q4 Earnings call transcript