GE Vernova (GEV) 25 Apr 242024 Q1 Earnings call transcript

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

you. Thank Renova's Earnings GE Quarter First to Call. XXXX Welcome CEO, and our joined today Ken Strazik; our by I'm CFO, Scott Parks.

can GAAP Our both conference the non-GAAP presentation between website. on and GAAP include in measures and and non-GAAP slides press call financial results. in remarks release be found will our today's available Reconciliations

statements on how we this will forward-looking make based During statements about things are today. call, we our performance. These see

we point specifically to elect update forward-looking in may obligation the some do future, not we while However, to do statements these any have at so.

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

the welcome purpose-built results Thanks, on on opportunity quarter. laid on executing independent earnings a Vernova, March are our electrify world. with We're at Day company first successfully in ahead I'm X. pleased excited as X. Michael. everyone, we strategy call delivered about We the the and an decarbonize Good April company and first our GE solid Investor the to we completing how morning, after to our launch for out

growth, in disciplined These macro driving transition energy the policymakers growing while flow. Even with the lead drumbeat expansion us for businesses our only last we Investor free the to our Day, to in dialogue better, and is cash pathway. decarbonization running customers demand X continue the trends of opportunities challenges are while accelerating opportunities weeks since on and ahead and growing creating the to louder are our meet higher real margin

delivery cost. with at our of side in And left-hand as safety. our page, to on core, safety, at most today the Vernova, meetings of remains improvement do to GE I start Lean shift we If we driving continuous and want quality, the

results months. is illness here our real focus the XX driving last rate X% improving injury over and with Our

employee, as ensure top have We GE priority Vernova year-to-date safety run every and safely contractor we each goes work no always with and with the home fatalities had partner to we'll day.

Lean, experiencing on share executed participated alone. Kaizen you automation growth, X the And grid protection automation and for in To making breakers. electrical events Grid equipment give electrification like we and business its in but to provides I an inventory. on line QX diagnostics to electrical is days using transformers example essential over business events in progress XXX substations Kaizen we one of has and the processing important on top is where an with parts chain with still color for for January in solutions like that little double-digit inside addition monitoring a XX of of the Ontario, for grid are more in I'd for business Canada. This controls our batch supply

protection outcomes for XX% on Output executed happening work decrease into prewiring decreased times, first. the line travel across teams delivery increase what and is to X parts XX%, ultimately Kaizen to has event, a roughly of prewiring. Vernova our processing progress Kaizen seen Since the by one this to output is us of example costs, and GE we've enable distance our week lower This site just customers. improving focusing every by generator on single reduced with lean At event panels activity batch January, inventory transforming we've in piece over increased in XX%. the flow, for

also facilities, lean operations using addition business simplify embedding within our costs. reduce our lean we In are to to our and

a the our GE on is as in well areas company 'XX Our QX happy finance cost and corporate from standup not HR. public leadership additional cost G&A growing reflect the as our here team sit versus our April, is but as we of about IT, expenses one of QX as the transferred now

to lean leveraging urgency, with action G&A on processes. laser-focused waste our are We eliminate in

the on serve. minute a business spend page to markets segment the of right-hand they our like the trends side I'd X and on Now

and power led are continuing the turbines gas in X,XXX to fleet Gas see in Power the demand. over by Our businesses, strong uptick

Our single driving our business. in fleet strength low is digits, the on high-margin services utilization growing continued geography gas of depending

coming in In quarter next away and increases Power in versus and trends year, in addition, robust be continued capacity. additions both for electricity interest gas Customers Services demand grew demand adding gas with growth expected decade in double with XX% for in the along decade Gas and decarbonized on carbon years, orders how capture. is last growing. showing capacity equipment the installed into incremental this hydrogen the new capacity coal, from focused can a with the shift increased digits base orders services our are first

with our focus how spending time specifically accelerating with this. strategy working on the with to on meet create few are this chain demand. on to our I, are incremental leadership focus and team capacity along partners a our growing supply Greenville team others in weeks to in potentially We the

wind. to Turning

improve very volume the onshore as the onshore a continue structure straight a business, we business EBITDA wind just benefiting in $X over low this delivered margins a better We in with cost third wind onshore positive backlog Even still expand from wind quarter. revenue, total. for lower QX in to of billion

higher expect revenue we mix. America revenue As half a half second at North first will with substantially discussed than XQ larger earnings, be

key we significant orders. new where accelerate the that while offshore as term. exact through remain While the energy will on can our we working excited offshore, as about this in onshore on and is performance backlog. permitting timing go believe are transition, very of And with orders U.S. we highly remain in come projects, growth we orders new the the wind existing the are the business selective medium revenue navigate customers to In cautious challenges we our

our drive and reliable segment number demand Xx the business growth to and X and expect revenue quarter products electricity electrification, our a growth given grid. invest a both ensuring Finally, ourselves which future for well the and can continues revenue, for will were electrification as as modernize switch where connecting to strongest the Orders over backlog. our challenge in we opportunity on growth in and generation. fastest-growing is margins medium what the products the have term, given to gears, key system this segments, customers achieve to and Significant transformers segment. margins best exists this of Profitable such profit accelerate dynamics. on we we Of we into the healthy has in one added pricing demand new

performance, delivered quarter first our to year. to start now we a solid the where Turning

on down of year. growth We continue disciplined orders our will top and be X% organic growth X% revenue the QX prior had to and line versus

over billion compared QX and margins expanded All cost single-digit segments 'XX, grow, combined almost points. up with by Our margins. Overall, productivity continued with to X increasing healthy margins to price, $X backlog high driven services continued basis we reductions, growth. XXX improved

we expect In year in as the quarter, we meaningful cash to compared free flow and a through year. improved acceleration last cash the move flow

the We Day provided in Investor are reaffirming guidance at March.

For more I performance. call details Ken. our around turn to quarter will and first over that the

Scott. Thanks,

Turning X. which an best and on I'll Slide of results underlying to our speak represents performance to business. organic the our adjusted basis,

and $X.X improvement of margin results billion. with cash to in we orders. our Orders double-digit billion approximately offset than backlog orders Scott revenue, strong our growth reached free more and power and in as quarter $XXX expansion each in slightly expanding electrification orders equipment equipment EBITDA first lower total in solid declined were in orders and service X.Xx delivered mentioned, segments Year-over-year, further wind flow. continued significant As

Importantly, strategy we continue our growth. drive to disciplined profitable on focused

segments All from by at the partially the benefited basis X% basis EBITDA power, strength expanded offset with points by margins As of Revenue and healthy. in electrification XXX expansion revenue points quarter. segments equipment delivering quarter. margin and X% year-over-year, price were power. grew result, X led a with XXX and in positive wind. Services in backlog growing remained lower all least strong,

the in costs our expansion impact quarter of results. are included costs with These year stand-alone the first in not The line includes prior expectation.

expansion price, driven productivity Margin and volume. was by

We from inflation higher together, which, announced R&D continue and actions, to more also investments. offset benefit our than these restructuring

followed is seasonally flow as lowest cash the quarter progresses. first sequentially our improving The quarters year free quarter, by

earnings, outflow net $XXX million was million, in capital outflow $XXX approximately outflows. was last $XXX of approximately working Working improved this over million was offset higher year had we by an partially capital While and largely along an driven preparation these a for improvement in the inventory we to second volume Increased prepare half GE partially deliver spin. as outflows. disbursements higher due with collections quarter, with build partially driven the on by offset payables of projects milestone settlements to equipment by

and as orders equipment Slide quarter Turning with delivered expansion. well EBITDA XX%, Gas Orders as strong by higher to grew revenue results Power The Power. orders growth on X. at led segment first margin

XXXX. and orders same equal gas During the turbine orders, in X full year the quarter, of last X booked more quarter HA HA to year we than the first

Higher aeroderivative Revenue orders services X%. booked Services by digits, driven also We for low price. outages drove XX grew along growth units. gas. gas double with favorable grew

over and good a XXX grew higher-margin off start power. with nearly We're of EBITDA as XX% more margin the inflation. of along in than productivity price services to with doubled offset and volume, expansion basis organically impact points

continue this gas Our and low power. single outlook up solidifies. gas for and potential to further the been utilization coal demand benefiting meet continued acceleration from reliable has demand We'll fleet a in switching strategies to higher year, dispatchable increased trending the as digits, power evaluate to gas

Turning wind. to

customers. orders. improved strong revenue declined EBITDA XX%, attributable make We growth lower good lower scale turnaround, continue North on our onshore where selected Orders largely our as provides remain We such America, areas to manufacturing footprint focused to advantages geographic driving to our profitable progress disciplined in on even levels. at and

evidenced Importantly, we as onshore see by interconnection North project growing American their pipeline the rebuilding developers cues.

by loss better positive continued volume, cost we key offshore and on execute from reductions Revenue improved offshore year. higher generated EBITDA increased Combined driven lower deliveries with X% margins third half declined while improved basis improving workhorse we products, signs XXX XX%, on which equipment our cost higher move incremental price. existing as which based over and of as projections sequentially. still services onshore demonstrating volume centered profitability we quality, resulting and onshore through positive the X onshore second offset points around EBITDA consecutive for quarter, integrating Onshore clear U.S. Wind anticipate the partially savings. in higher We're backlog. the Wind part to results our offshore improved prior from progress. year onshore was by is in offshore, the availability backlog, are versus continue sales equipment

EBITDA recorded had were strong very than XX% more XXXX. lower of revenue the Orders Grid in in first we large U.S. At HVDC strength the electrification, quarter and tenant although transformers, in across revenue, Within we for first business. expansion. orders billion, in Xx the high-voltage switchgear $X.X quarter growth of equipment our Grid strong a quarter and given at margin Revenue led by both in largest saw growth XX%, and increased demand segment, in Europe. Solutions business with the electrification Solutions, grew the equipment year-over-year

along improvement EBITDA quarter expanded Solutions driven XXX Grid another growth. Equipment backlog and productivity. margins to EBITDA the quarter points are continued demand Strong of revenue favorable volume, in this billion approximately of first up a is positive continued basis expanding by driving EBITDA volume and Segment year-over-year. electrification with $X margin the and margins. with compared as healthy result productivity of price. is pricing XXXX generated growth, segment

Slide Based guidance year, Investor upon month. our our to provided we're our solid to Turning the Day X. reaffirming last start at

XXXX, billion at the the with mid-single of EBITDA high forecast $XX end year $XX revenue margin billion full we digits. adjusted in For continue range to to

billion. of range We free the expect in $XXX $X.X million flow to cash

outflow our quarters over the first billion each cash of the quarter, improvement balance with ahead. through $X.X move billion as to X flow implies continued the the $X.X year Following of of we free this in

gas expansion. segment, higher approach in from equipment, cost positive be essentially continue power, By XXX price, and organic driven points to In and by wind, expect growth with productivity revenue revenue to services EBITDA flat we margin savings. basis we approximately expect of mid-single-digit to profitability and

price single to onshore the As to anticipate compared the electrification, with as demand higher growth margins due previously higher digits. margins U.S. low strong volume high first we drive productivity benefits. in revenue double-digit full expect half anticipate organic mid-single-digit drive we to second and and EBITDA price to year as In well continuing and onshore noted, the volume favorable to that

guidance margin and anticipates $XXX In costs. $XXX of of incremental million approximately costs, million stand-alone includes which corporate XXXX EBITDA addition, to adjusted million $XXX other our

ongoing power and should the last growth Looking expect margin across its volume year-over-year second top quarter, segments. equipment EBITDA services continued quarter, margins the second higher and from Relative expansion as specifically the and line at benefit we growth to well from top productivity. grow pricing modest revenue. year's as should EBITDA line

further continue should higher line as pricing margins from deliver Wind and productivity. strong but decline, improved should growth, volume along impact favorable from we improve is to expected see to EBITDA resulting revenue with top costs. positive better reduced the and Electrification pricing,

in Year-over-year quarter We in we on we expect our working year-over-year free to improvement capital what execute continued than anticipated quarter. actions. second cash better the as flow favorability the be continue delivered is first velocity improvement to

with products stronger confident in free encouraged the cash to that, investment-grade balance strength back to we healthy it of and and remain is let sheet. balance services, execution the We're financial me EBITDA April We billion, margins cash flow. committed see our turn on for our and demand maintaining the very our We're driving was launch to our $X.X rating. Upon our X, Scott. year. performance increased start solid continued also and With

year. with strong wind and growth it's or meet continue electricity modernize expand helping systems, we Thanks, uniquely electrification positioned whether demand customers needs. the are our lead Market the segments, that to Ken. power, All demand support dynamics to will start to grid, are our multi-decade momentum to drive to their we to decarbonize their across in, rising pleased and

installed its of our XX% from as support growing and free drives large strong, generates cash flow. consistent services that revenues base segment power Our we

be the to Wind order is energy X% achieve By need today. XXXX, representing goals. will part world's of closer its electricity for a key to of world the in the wind XX% decarbonization to only transition,

continue wind. expect to expanding We in margins

to is segment and highest continue electrification growth margins Our business our and backlog rise.

and grid-related connect We zero-carbon power customers reliability investments improve planned increase seeing significantly sources. more to are

As our are operating our discussed the of company. sustainability earlier, system, innovation and core lean

committed are to efforts decarbonization. their driving to customers sustainability advance We and electrification on deliver help and to

demand our as running increasing are markets We electricity businesses evolve. and from better benefiting

stakeholders clear portion Michael for growing call. deliver all a value to pull expect a this forward. free create substantial for for opportunity to we and cash With see the the together, when to We Q&A hand that, going all EBITDA long it we And flow I'll time. back of

you, Scott. Thank

Before the question one I'd we follow-ups. the your as people ask to everyone so have can as fellow we return open Please ask line, queue Operator, the possible. consider to and if open the you in line. to please analysts get many queue

line [Operator Instructions] with Our Strouse first Mark the question comes JPMorgan. from of

Congrats the on finish line. getting the spin across

side, pretty will the So noteworthy. guess kind question one I my be of on starting equipment

HA My than to broader being for sales have, give quarter, it all book-to-bill when we should rational You of about of expect an orders equal you on more HA that turbines, just turbines to booked into just think can than X revenue. those the Is when but X convert a in bit on kind And to pipeline XXXX. color the is might orders? question just the of the update greater convert year? to kind you

and that new and was both it HAs the also that. I seeing Thanks, for first gas but East, the Mark. focused sure, take In are applications. business, in Middle in North quarter, demand I'll increased for mean, we America both aeroderivative the was additions. capacity on very growth

is mentioned can from support of through our revenue really continue what's forcing revisit orders conversion think you And and think X our year X our think practical it's with revenue growing earlier, order very well I gas coming to backlog. to how about us very to with kind think it we have years gas As cycle do equipment than book. in larger then capacity from here. of to growth really equipment And a could a to this I this to be additions that our and

carbon to from decade. number also a role gas the decades confidence here decarbonize this a that of and customers in in with think good conviction more play ability But going they're getting acknowledgment that year, I and sentiments future our But start an our is exciting critical acknowledgment and to gas to capture. hydrogen

good to So more A do. lot start.

Our next line Sachs. Joe of Ritchie question from Goldman comes the with

Congrats a on public as getting company. out

just on equipment It a growth market. power much just time my a service understand been digits. of of a see those I'm period curious is also of really being going question for a be And double staying So contract capacity. seeing generation my services is where maybe getting spot just not new you're whether really, of now trying up ton in on could period we you versus healthy have of the side basis of the on a level what by we're second. notable orders forward? to adding time to orders is one the that pretty where really on adding orders And and in driven question, how the sees

just at base. really growing. emphasize capacity up, or is evidence installed to is the of growth I I double-digit orders Ken investing isn't start, and really mean, additions as base bet, that the connected That's framed in would installed the mean, new Joe. I there. that of customers You orders our existing utilization fleet

seeing integral parameters. with You're investing we clearly to do services, we sees customer play gas a continue in that throughout role as that year base into gas to operating this is And and is see through and look gas we XXXX. different see the fleet what strength services going that

comes next Sutton from Paribas. Moses BNP line the question of with Our

what's you to new other. see U.S. in on short ] term? thoughts more X.X talk continuing last XX% And little the guess this lumpy, a know there versus the gas geography, East the higher you it average but about maximum versus [ than can -- theme orders is it's bit could here. the I equipment medium be gigawatts year. I annualized in Middle could on How quarter Any -- detail?

had gas East growth Middle global and in We're and And still having cycle of pipeline. healthy Yes. demand very we again, growth. supply capacity gas But we first U.S. gone there, in us at in quarter for additions. the simultaneously, revisiting but to We a we're the new North medium services it's seeing emphasize quarter would lot serve our centered a look just partners Asia. really first regions. was pipeline over were that pipeline, has demand. healthy a market more real the see on term, it, with because those We the America. how growth can new The how at demand look through when with Moses, previously demand centric I serve that our with chain we work orders there's

that working as we're further year. back through through So updates in with work the we I'll our regard and come way that,

Our of from with will come next question of the America. Obin line Andrew Bank

David Ridley-Lane about is impressive. This orders are electrification composition this Kind book-to-bill of the quarter? is on orders Andrew. time the lines you talk what for products and conversion Can those this very on quarter, of X.Xx

Thank the components across orders, of the and Dave. good grid in business. businesses composition the growth Yes. grid of The you, all saw we

where So to in how composition the in The space, services, see grid happen are that that areas cycles. longer there. we transformers, delivery saw is tend

talked that in the of saw last a about expansion backlog, our grid grid. So in was business, one our of for lot things we year that equipment XXX of electrification being the we basis about backlog points that

fact anticipated The that's higher good the frame. news backlogs with into margin order good be we we the the backlog, about we're something electrification orders the that digits seeing that move as deliveries, mid-single on that out about backlog talked they really and business cycle into those margin continuing But and will to what time coming and that expansion get XXXX, is supports expand that strong EBIT is XXXX. and XXXX electrification past longer margin in that margins in is feel to because are expansion we to

from the business and of good opportunities the front benefit line business it the margins. good time electrification across a stronger good really to for space, So within orders in

the question RBC Markets. Chris next line of Capital comes Dendrinos Our from with

your guess in? into does that you're does into the interpret Yes. just the perhaps should really, of And compare back were your I'm kind that year? I as strong then coming of the this expectations strengthen against expectations? coming momentum outperforming year. And really continue half curious, how to what internal mean we

it. and a Yes. you question, It's thank good for really

bit more the half second about versus of seasonally year, the always focused think you first. the be the to we're towards going a As little year

relatively a So you when is, out I expectations, are of doing very start quarter. Keep productivity, orders the of strength and the give our in the the reductions, quarter be reality execution, but against the that's good very, pricing, our smallest answer, whether the mind, very what seeing of in the it year, performance this cost good. for we're first Yes, we well in

that told anything point are in to that, change at can incremental of we the I confidence going out but this to what we statements on about the confidence year. momentum mean year. the path the it we would you you gates made But we're gives we've gives exactly deliver time, doesn't to the that that tell us really a for us you reaffirm

from Our of the ISI. with Evercore comes next James West question line

the I go Congrats coming on or seems again going and to ahead this to back definitely to is markets electricity because into company lever data we're tech trying end normal I growth. on of company inbounds to box. not curious want players, the what bullish, evolving and the realization out this the think broadly, that executives, quarter most just themes but you're of we're curious, conversations investors to in market deployment, is idea well bullish like that. the And deployment. first the We're of run Scott, from electrification, are tech getting most your seeing demand you're now it That's I'm power where how center electrification. AI

agree. I James,

growing that the customers I to uptick very lot power-dense role. real, the center conversations is we're is above traditional of supports is, is the iterating with, very different it going play portfolio a their hyperscalers. a been to our our critical lot for possible that needs. operating last a few to years, maybe -- talking GE counterparties this with be on companies, data it's the Gas focused the technology of the It's end working art a Vernova And and think parameters the about and inside customers which understand the of going whether things the demand is with the like solution what serve are an to both what technology all we've needed market. of of the be clear

going how solar play at is is same We're lot to now a important on But small of we're that wind decade, right can doing modular an going to of electrical grow And equipment growth the work role. play fulfill having it role. and source, time, a from transformers our into demand next us that business regardless how reactors on conversations the equipment And generation real is power whether or the gives to the be critical. electrification here. inside the data centers, opportunity

not it's to to translate tough about opportunity is market. encouraged that demand exactly the tomorrow, our the and medium to but conversations So serve And that call term, in be certainly orders. we're when these real may really

Our line the Mizuho. will Maheep next from Mandloi of come with question

the on first Congratulations quarter here.

Just X small ones for me.

the And electrification offshore for on geographic from? on that? you separately, if orders mix the wind, on on RFP we're the first of the where could manufacturing getting theme. Any you'll the talk about NYSERDA, thoughts if be So participating Could talk you to logistics.

electrification with start I'll Sure. the question.

are more business of European presence to mix our but seeing America. we I weighted the North in probably good We the the interest demand the sure. On more and across And do good would primarily orders America for Europe. have general base, coming are orders, in North is say heavily

really see be but comments its to as to we U.S. as of Scott his good outlined some previously, based, optimization the We not continue being is business European more great to market starting grid strategies. a focus on heavily focus in heavily that by on only

things to business Europe great expand that the mix a probably for seen give I'll North into that they're Scott little see that's offshore and we today in let the doing we've bit while one. heavily question So to Europe, a answer good opportunity really Maybe focused wind more America. that

and wind, of York first York we Ken. New Thanks, and reinforce energy the auction. as wind part with an partnership the in offshore appreciative And of view been NYSERDA I our just here. very transition that important we've New State iteration offshore X on Maheep,

thrive. been going, and product here, our you, few phase ability offshore the product with our over point With we're customers up has ready years, projects iteration boost megawatt that last been where XX.X megawatts. have XX.X has hard to an in excited get to to a that wind we're it's generally I future they're a to to a our want power through to about that the But tell

to And to hard have when running we're time product get look the by the million today, going at product. XXXX. into the that of of million with our neighborhood have where product, hours that working to prototype We're XXXX, end X we are in somewhere XX-megawatt the you Haliade-X we by X operating with

State So geographies to working many to the believe on We the on an in that play other build today. York we're going states appreciative is work there's industry. and a to the lot role for energy New of and transition, wind important offshore the iteration the with partnership

the our time, terms and than for to of in things: we're other And projects going complexity on at wind going to to offshore executing different believe there's we're a do in from, keep day in because that lot the all energy we're terms a add combination we different when leaning today. price, role to going economic that's we're meaningfully consistent to in on But it it's it's are to what but add what on backlog of going that learning been And we than that a materially transition, a many with backlog and backlog play today. we've set pretty only while working same every that the really are thrive. to is only

Rob with from line come the Research. question of Wertheimer Melius next Our will

And comments shift the AI given demand. power. think is I all about that you've know we've I start utilities forth. of utility electricity to shifting X if and could so you And forward then I the both is you economics new in and time the Or woken or something the in pulling a discuss briefly talk world ahead Are new could I'd pipeline? they Do aeroderivatives now? you of have on service? guess like that? just And kind in that of us? to demand? with kind us geographic to on on would, up strength on U.S. remind of that's But What's reaction years actual you builds order or lot real the

our question. been curve I here utility things demand Rob. secure have for admittedly, to of a X up our working in them. would they the for many last firm heavy-duty customers let's have end projections them sooner capacity load a XX say But demand accelerating sense future customers the I most like over the discussions for few on become sites while say, growth bet, framework build our steeper equipment And the last, make months. that agreements that that You towards development for project years. on is appreciate to with

So that. customers customers project, in otherwise, going to utility there and to permitting macro line specifically gas U.S. not many hard capacity the are close with kind things through a our additions. it's is and working that theme But power have of are like straight very get of incremental clearly U.S. any on them to a

are opportunity going with we capacity utility ahead us bullish and our addition, very to for the customers it work on hard. are So optionality or

just to megawatt reality so one power. be need that your zero is this solar is of exciting of carbon the is aeroderivative that to ramping product suited to On XXX with the more wind part parts The second of fast XXX solutions support complement blocks to Power. growth of question Gas the technical or the line aeroderivatives, well

perfect multiplier grow about when ways, Gas many that. that being illustration faster, power we to enables in Power So other is forced a aeroderivatives the sources zero-carbon of talk

high a economics general units not we the are because aeroderivative the those the turbine us are healthy consistent and operating for because get on that equipment gas than that they or may a the to those profile heavy-duty can really wind project aeroderivatives solar on of as stream more be as annuity are admittedly, services margins farms developed. support Now more as with count or there they're

the of With on X revenue. larger heavy-duty us larger a like a switching, projects So when for project the on we the day underwrite are it's economics coal of something gas gas with proportion services. are equipment a a the proportion economics aeroderivatives, to where

we think for more I question. have time Liz, one

Molchanov come will line of Raymond James. question from This Pavel the with

positive that achieved the mentioned onshore quarter. wind already You in EBITDA

end Given seasonality a on at anticipate any positive to the basis? before EBITDA the as overall do wind you point the of of quarterly segment, the whole a getting year segment the for

So -- is XXXX. is what would delivery with our that but improving as the generating wind backlog, backlog said well profitability as we but for improvement continued guidance deliver losses we which offshore is wind we anticipate that of approach in in that our as we that the

talked the lot have our within in really that is, which good challenged the the fact sense would half a onshore Now revenue number fundamentals one, about in of built first does be we for wind that, of developers. that

on wind backlog the come customers Our we pipelines year. onshore business. that feel their that would second the the is move in hand are on the the and have to based see half we orders we we upon working do start rebuild the to in through But as year what of

point, of We because onshore higher expect to we anticipating EBITDA be background the XXXX a I profitability high That that give as seeing we sooner than wind segment we'll half totality. we in for on that good to guidance know year. profitability well the onshore margin in of some digits will single the this is businesses in close because to get our said, that quarters all our that year. But out year more as revenues bigger at we will in see wind performance If in as the us at of the half XXXX. of the for reach of be business move second has we're the the contribute first we're for track in to through improved a wind to totality. gate productivity measurably as you approach

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

serving the is think always easy I XX days the our operations hope the team of us want Thanks, Michael. we The focus this market. of thank our can you XXX-year-old in from of with excitement balance. customers our excellent on continuing in that. an not year, Everyone, did job front And the employees. to company our in in hear plus process while a the short, to separating on an in to opportunity I voices first I serve have

we're continued now into. I thank iteration markets us the that their want to growth trust in also facing our we're right continued these customers having and that on for

GE For interest for thank in you started, everyone getting on the your I but call from here. today, Vernova. We're just our really like chances

with for wrap we'll I think the thanks the So And that, time. call.

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

may disconnect. now You