GE Vernova rallies after profitability update, affirming full-year guidance (NYSE:GEV)

GE Vernova (NYSE:GEV) +2.4% In Thursday trading, the stock hit an all-time daily high, reversing an early 4.5% decline after it cut guidance for third-quarter earnings, but Reaffirms its full-year forecast.

GE Vernova (GEV) said it still expects to deliver strong organic revenue in the third quarter. Growth compared to last year with adjusted EBITDA remaining relatively flat year-over-year due to additional costs in the wind segment resulting from recent offshore wind turbine blade breakage events.

GE Vernova (GEV) now expects its wind business to post a third-quarter EBITDA loss of about $300 million due to costs, despite posting a fifth straight quarter of profitability in onshore wind, and to turn “modestly profitable” in the fourth quarter.

In a second-quarter earnings conference call in July, the company said it expects adjusted EBITDA to be “stronger” year-over-year, but is expected to decline quarter-over-quarter, with EBITDA in the wind business improving and approaching profitability this year.

For the full year, GE Vernova (GEV) reaffirmed its fiscal 2024 guidance for revenue trending toward the high end of $34 billion to $35 billion, adjusted EBITDA margin of 5% to 7%, and free cash flow of $1.3 billion to $1.7 billion, as incremental strength in the power and utilities segments, both trending toward the high end of EBITDA margin guidance, offsets additional costs in the wind segment.