GE Vernova (GEV) 23 Oct 242024 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the GE Vernova's Third Quarter 2020 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 Vernova's Earnings GE Quarter Third to Call. XXXX Welcome CEO, and CFO, joined today Parks. Strazik; our by I'm Ken Scott

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

are Please discussed during margin adjusted EBITDA note that and year-over-year basis. commentary prepared or on remarks variances organic on orders, revenue, an our

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

While some we to we undertake may statements elect to update obligation point do these forward-looking any do at future, so. in the not

As results uncertainty. may described risks actual and SEC to in filings, differ materially our due

I'll the With to that, Scott. hand over call

earnings Thanks, Michael. Good morning, everyone, and quarter call. welcome third to our

and the for in to We growth confidence continue Vernova. GE gain ahead trajectory conviction

We increasing innings are super system grid the expansion an electric for decarbonization energy cycle and demand driven on power, in investment power in of focus security the early and by investments. of the rising increased

GE and have we been sustainability are more Vernova clear, report to our first published never excited purpose The month. last has

the each Our we and with objective is to ensuring in electrifying in provide operate report our year better and in decarbonizing operations. with conserving simultaneously world own while on get our thrive the metrics this progress communities resources

the avoid million COX the existing power intensity the of of this global to globally year. grid discussion quick per global XX% the capacity we XXXX, In added each XX has average and XX% we'll intensity on capacity XX markets. is update to carbon The A a tonnes year. below of carbon an few metrics, of approximately in metric sustainability measure gigawatts new sector developing of potential the with

our True shareholders. for I towards align while share the These these purpose each financial ambitions attractive more grid to capacity returns with our year deliver to to sustainability multiyear a sustainable driving metrics our broader system. our North in electricity adding reinforce both examples

Slide of to minutes X. on each Turning a spend few segments. our I will

and led Our expansion. with as by quarter, Power over XXX units segment HA Gas well Power orders services. both points driven XX% by margin demand delivered basis orders derivative increased as and this strong revenue growth double-digit equipment substantial for Power of

booked of orders for level. Year-to-date, XX double turbines, approximately last have nearly we gas gigawatts new year's

the expect orders largest We of quarter to fourth be equipment our quarter XXXX.

from discussed in to between to XX capacity year have gas recent years. per we secured turbines up now XX As XX September, heavy-duty starting in deliver in XXXX,

capacity anticipated manufacturing look profile expansion, we for XXXX even orders scarce. at slots are with As the and this XXXX,

in are equipment addition growth, we meaningfully. our to In services grow seeing demand demand installed base

As expect customers more driving plants, out and we gas aim growth. greater their demand capacity to of services performance better for upgrades, get

billion about by grow this end There about our of the Today, Power in segment. XX% X a decade. is we our of business, by upgrades gas and could anticipate annually to we deliver in lot the excited be

as HVDC Electrification customers a remain and revenue volume grid connecting essential invest sources. and to products, reliable Demand modernize are ensuring systems, is stronger the system which by products generation transformers our and in in such fastest-growing delivering our for quarter, driven price. strong XX% increase electricity and new critical as switchgears, a segment,

levels by we we profitably, X track grow year-end and billion. have backlog $X just triple our are equipment than meaningfully seen this from of years, more 'XX last the backlog and to 'XX over Over on year-end

business acceleration time from EBITDA to double-digit margin expansion, are our in basis achieved driving deliver first electrification expect quarter, XXX an trajectory increasing and trends consistently double-digit of the with for improving This confidence we margin nearly here. margins in Demand and our going EBITDA points. execution forward, expansion this

on a number the we expanding this timing and profitable deliver remain cautious margins profitability, to delivering inflection business single-digit this but flat quarter our years. year. onshore, on to EBITDA our In most margins the continue high have wind. approximately of on revenue for in orders, to We Turning positioned improve of

to we can in months on In a significant to continue business. margins we this are our We with have and customers results impact continue confidence took this XXXX, had early growth given as that offshore, we've accrete we revenue financial drive on the difficult loss as onshore X our disappointed and as a quarter.

root a We the confirm our manufacturing was in by analysis cause Wind and caused have factory deviation Vineyard issue from at finalized Canada.

quality in rushed not offshore thorough, intentional, totality. very been blade in wind across reevaluating have We our

As readiness to we strengthening field factory are intended proactively the either or quality of at we reaccelerate in projects, their our and for progress improve back the on some the life. blades, useful

while in installing resuming and Vineyard we to are turbines blade installation. very in installing continue cells close Wind, towers are We at the

ahead, ourselves. and quality improving safest, model for on backlog execution approximately $X the focused on customers and Looking in delivery delivering the economic billion makes we're our that highest sense

the as that foresee team our difficult the We quarter. I I'm not we in in engagement marketplace return will do customers. in without different of we adding industry backlog they appreciate what Wind fourth proud to see substantially profitability economics confident environment remain to this and the today. than our the this with execute segment

quarter in the over on cost. Safety #X onshore site across safety, in our priority. quality, we experienced driving Sweden. the side We're the unfortunately, organization, to embedding this continuous fatality Now wind right focused in of is delivery a further page. lean And improvement and

are our We the to working earlier lifesaving company-wide rules this accelerate summer. of deployed adoption

commissioned how that workhorse last our example our lean onshore workhorse An availability XX% wind on reduced business at operations are we Turning to These in drive X,XXX X wind to to repeatable units performing are approximately and variance have quality. is implementing due the our strategy. focus in Today, our quality. over better of years. turbine turbines we we've of X.X-megawatt

footprint to we delivery, spend with increase of On manufacturing limited output are capital our needed. leveraging existing lean

coming by XX% and of of utilization. capacity core example, double manufacturing the asset with expansions. Grid, expansion come from The output will from improvements of business, in increase Transmission remaining the capacity driven Power the business As an this labor within our we will the site lean of XX% better

our On more cost, offshore business results. we to announced part to efficient our in and as it efforts of streamline headcount reduction make wind a improve planned our to wind

We increased business wind lines, are with structure. Wind as improved and teams offshore product wind visibility, with global X X better main an an X the cost learnings operating X segment a onshore across and the

business also driving customers for the while strengthen our continues are this confidence in We large ability progress projects substantially suppliers the in our in This this forward. backlog accreting margins deliver we with have XX to and our in meaningful productivity secured months. our electrification to that last backlog growing going electrification in

the well our with quarter with electrification third We services power, performance. a significant delivered expansion at into double-digit for wind. XX% a solid Turning look almost financial revenue next and quarter onshore margin as as up slide and growth to double-digit orders

we That forward. said, in our us We our which offshore balance execution wind, quarter could and flow and challenges cash have free $X.X in for quality stronger to cash addressing billion learning from if XQ. been company make from billion the not in generated to and substantial increased are even going XQ stronger a $X.X

This how stake generated to pretax demonstrates electrification T&D segment valuation sold we During the India, approximately XX% an that quarter, ownership we proceeds. part at GE attractive intend run transaction the in Venova million Vernova. of GE $XXX a of

to invest see to We portfolio our the more will return do monetize core to businesses company our assets enabling capital attractive us shareholders. we in simplify opportunities across so, when our to and

in discussing reaffirming York our our of allocation full confident the on are at We financial to well strategy guidance. as in New future XXXX look than capital We update outlook investor our year forward XX. our as more December ever. I'm business multiyear our today

I on third now Ken call And more quarter for the our over performance. will turn to details

Thanks, Scott.

due double-digit and and In solid Electrification. across revenue growth at results offshore wind. the onshore we additional to losses wind, contract expanded power, with but Slide electrification to Margins orders Power led quarter, Turning offset X. were and year-over-year delivered third by primarily

we cash increased driven management, by Orders segments. which substantial flow Importantly, in improved X working all double-digit linearity. growth grew including quarter services, with by XX% the XX%, driven capital generated strong across free

equipment substantially, orders offset grew X%. Equipment wind. orders by partially lower grew and orders equipment approximately Power at electrification

$XXX priority. backlog profitable healthy, Our both year-over-year and backlog disciplined remains of margin growth our and grew equipment sequentially and billion reflecting

all both and Electrification Revenue Power segments, Equipment increased drove revenue. and higher Equipment XX% grew while X in momentum Services. continued in revenue Service in

In positive across remained addition, X price all segments.

productivity Adjusted than was expansion, margin EBITDA continued the quarter. profitable losses Wind, realized and an to by offset points. On margin of in more strength nearly organic offshore. This reflect Electrification contract basis, price to higher primarily margins volume, at higher, expanded XXX basis points more basis and XXX due Power

$XXX approximately includes driven nearly disbursements year-over-year, of delivered aligning by We billion million closely $XXX improved the an linearity, quarter $XXX improving the million which cash to over Working year-over-year, benefit free stronger flow capital in improving of positive primarily working timing mainly due million capital management. $X collections. more and was

the of of adjusted to proceeds also monetization a $XXX balance in no which impact ownership EBITDA. classified Our cash with million cash XX% in our venture approximately as electrification joint pretax financing generated flows India, reflects stake

remaining this to transaction India equity the this in of entity shareholder as business, executed strong our We as while capitalize as majority shareholding well in a an market. part valuations simplify attractive serving process ongoing structures to on

more with and quarter our EBITDA $X.X led solid billion. margin our $X over of of solid than cash by our cash adjusted $X.X increased generation, positive balance year-over-year, X% proceeds increased flow, billion. flow third We're encouraged Combined billion improvement which a basis points growth free expansion performance with financial cash free XXX by of to over year-over-year these already year-to-date revenue services,

for in growth both Our performance. continued backlog and financial equipment foundation an provides strong excellent services

and in quarter, segment revenue EBITDA to double-digit exceeded strong with HAs services equipment growth, The expansion. grew XXXX. increased XX% we higher as on Orders which margin number quarter the by Turning Power Power total at orders booked led all of equipment increasing continued of further Gas orders XX%, units Slide the in X. booked another Gas HA X and Power. delivered

the due equipment robust for orders upgrades. We services is growth quarter, to higher third booked gas in quarter aeroderivative in in were Services and XX% demand almost Power backlog. up further year. also the last and driving from units doubling units of XX ordered The demand our outages

XX backlog, heavy-duty related by turbines enable delivery annually in upon capacity Revenue from driven funding grew and expansion we're gas Power. Based the to Gas customer payments down of XX orders XXXX. XX%, starting to

well expansion as HA in and Equipment from productivity as than as mainly turbine resulting XX%, volume increased offset points outage inflation. of revenue higher higher of increased XXX gas basis growth reflected deliveries. price in impact more price. EBITDA volume, the Services margin

equipment We're using is improving profitability. operational better drive which execution and lean productivity, to

the through control quality in and kaizens. so example, turbine execution has team gas productivity work heavy-duty a work this XX% from far margin underwriting to This series generating improvement a of resulted expansion. enhanced For standard in year,

better and results We continue to financial to for lean leverage our customers. outcomes better drive

the Looking to in revenue, to gas deliveries EBITDA at orders fourth deliveries, and margin flat We compared to services we anticipate a offset by accelerate. HA lower be higher and equipment resulting quarter, expect 'XX. revenue XQ strong aeroderivative relatively

We also productivity continued to offset inflation. expect

onshore delivered quarters. its XX Wind, At profitable results most in

recent contract of selective execution about North XX% of While America lower expected Wind impacts as related we the markets orders to blade equipment the incurred offshore we events due and serve. remain outside losses declined additional to orders project onshore delays. we

In our slightly a a backlog. in on canceled of In of previously offset resulted million $XXX existing partially decreased offshore, we offshore quarter. remain the impact project. focused by in executing lower for execution revenue, offshore, approximately settlement delays Revenue the challenged

outside equipment North volume and In points contracted North due versus services America. of prior despite EBITDA year. onshore, revenue America the lower grew basis margins higher XXX to

of from offshore, gain million the for million $XXX the offset offshore was contract the additional the by In project impact partially settlement. charge cancellation $XXX approximately losses

price and positive favorable services better delivered Onshore mix. more and from cranes as expanded to improving margins onshore, fleet higher costs crews results continue equipment deploying despite In we're availability.

across on better wind. and focused cost driving we're quality, productivity execution Overall,

the timing North order As customers of in inflection queues. as interconnection on onshore discussed, navigate we an remain America cautious growing

more of to onshore and out existing expect do quarter the substantially equipment in Wind revenue backlog. We as EBITDA higher-margin segment deliver grow volume we the fourth

a quarter Wind result, results. in stronger modestly be should given the profitable As onshore

another had driven XX%, the grew significant We and equipment. expansion. X. of Orders revenue robust Slide demand, EBITDA margin on need for quarter electrification to Turning growth grid increasing by

Within Solutions orders remain in Grid the particularly strong U.S., for switchgears.

XX%. margin conversion. by Revenue on nearly by volume grew strong electrification with price Solutions addition, EBITDA and with points and growth orders services continued in switchgears transformers productivity. driven Grid meaningful XX%, expanded XXX power and increased basis In

all with quarter The achieved EBITDA expanding in the first segment margins its of margins double-digit electrification quarter. businesses

strong to continue EBITDA and see demand electrification margin resulting revenue price and We expansion. substantial in growth

XXXX. billion approximately Equipment orders equipment further strength quarter driven almost are at equipment In anticipate billion, the further margins. backlog the healthy of continued $X order third up revenue, by backlog fourth growth the outpacing compared we expanding to to $XX quarter,

Revenue the more rate comparably performance, XQ relative year-over-year, in strong modest should year-to-date but to revenue a increase at 'XX. given

volume, We productivity. expect pricing higher and favorable continued expansion margin from

XX Slide to Turning to discuss guidance.

touched on solid for pricing margin for overall, from expansion year-over-year and the the growth more and While GE I despite revenue segments; Vernova higher, offshore. productivity quarter we losses fourth at volume profitable EBITDA adjusted expect

quarterly year-over-year We expect fourth flow cash to cash quarter as improves. be free lower linearity

our Given also last XQ order we payments. we expect year, onshore Wind largest lower in booked down the project,

future In addition, as Power along expansion higher CapEx, in growth we of to EBITDA higher Gas capacity anticipate and result support a taxes our with Electrification. primarily

losses in Wind. as year, at Vernova full GE reaffirming the offsetting For additional and stronger performance guidance we're is our XXXX Power Electrification

of billion, adjusted but the flow range margin X% X% to to be expect higher the the towards continue trending $X.X be cash billion free revenue the and $XX high $X.X between of to $XX We end and to billion, end in EBITDA to of range. billion towards

Power, segment, points expansion EBITDA organic growth By Services at XXX strength expect margin productivity. from we to to and in revenue mid-single-digit higher basis XXX continue of with end the

be expected to savings revenue onshore offshore. and to mitigate partially flat losses Positive productivity in cost in Wind, still year-over-year. essentially we At are anticipate price,

EBITDA As a to profitability, the in to $X closer loss expect XX% segment compared result, we XXXX. improving nearly billion to move

growing high-teens taking of revenue very giving high and at to by seeing we're upper and confidence deliver the steps financial We're Electrification, expect now in for year. necessary we're EBITDA end at results margins we achieving encouraged Electrification, us single-digit Power In better increased growth, Wind. the strength the

our capital financial allocation our cash to multiyear December investment-grade forward remain sheet at maintaining We to XX balance. outlook with strategy you balance we're We on committed and growing meeting. look our providing our and details

it I'll Scott. back that, to With turn

Thanks, Ken.

electrify and that will decarbonize we with excited world. as are lead the help performance to and dynamics growth demand multi-decade for drive our future this creating GE our customers stakeholders. continue far to our year Market We Vernova continue and pleased so for about our strong value

revenue we flow Specifically, our deliver number from Services, its of expect Power expansion segment generates growing free of margin with continued cash to for years. approximately XX% this a segment and

onshore in and we to challenges margins vigorously expect continue wind, expanding We wind. in are offshore addressing the

In connect we customers electrification, seeing and grid-related zero-carbon increase investments to improve sources. are more significantly reliability power

to come. deliver also margins in this expect We higher the to segment years

at to As operating our our strategy, and our the company. we sustainability of execute core lean on commitment system, innovation remain

better We are and are our businesses positioned well evolve. electricity as markets running

And We see to flow we expect going for free to deliver put stakeholders when forward. growing together, value adjusted EBITDA deliver and we this cash clear opportunity over the a substantial coming years. our all

I'll our to back Q&A it portion of Michael hand for that, With call. the

line. Operator, Instructions] the please [Operator open

Our comes Barclays. Instructions] with first question [Operator Julian from Mitchell

worked thinking as of lot down? question, circling there you're first remind there a being just how of pace September. about Maybe the news in backlog clearly back $X offshore a kind on just us of Maybe billion as offshore that look was of today, you

was turbine going with anything issues please? the North on there in just a U.K. on then And what's blade project, good America. Maybe the on update

complete a by last mean backlog X previously You I difficult it's the for on we the us which the has mean we we'd largely previously XXXX. cost the project go, start. said offshore us. to about months be execution bet, wind of for have Julian. time delayed Clearly, had when have end we I had talked completing been

we're like been billion XX, months, our committed alternatives, In down that's to what managing with at of evaluating of when we've transparency 'XX like right, we but financial and backlog burn our through when we're X kind can long-range have things we're light that, the and go the objectives approximately moving we pace, period time of outline a of the incremental kind on increase $X the to we associated vessels, to that the together get giving as left December also that. you of things to financial targets both last

what framed of there, July. the piece blade one just event we've at July. very On and manufacturing focused Canada. We our going tell in this since of cause factories can in up that the in you was was deviation the a on we There intentional root the been today right equation,

all blades We small a offshore can our that totality of in that in similar our had also the today low have of been wind, very proportion, very in systematically manufacturing blade deviation single-digit Wind. proportion and blades say the reviewing we manufactured we experienced Vineyard a to failure

really your question those on fully right in to commissioning point In and doing at that we're and a To Bank, now sea. those Bank blades, getting taking of we're installation execution on in back and cases, Dogger shifting action to Dogger now today. out we're

In been cells both installing to just start got towers have blades of begin reinstalling at we and case Vineyard, yesterday. and to the the Vineyard guidance

from back this X and a last billion down more we'll lot I X chapter, blade of to on So on now learned go execution, to And December months. we've the to $X burn think the is the this XX. give you project

just as would taken to million And all are, that we've the taken it's account charge, we into where Scott Julian, of things that $XXX add understand I has important outlined. that we've

time may well extension as words, Bank There's in have both cost there's So work continue some for impact through know to the remediation. other estimates that we'll at, the the current project. also which on Wind we but this line, of Vineyard Dogger how we it project delivery it, blade as

thing the with The we're make teams consider we're there. to sure of making all deliver. of to But as our as you and we've done that the are what important we as sure costs this those the best numbers that so have is, customers clean come done charges with can delivering takes it commitments work going as work. the along effort outstanding to that's far give on have they that, be So a some encapsulate attempted to we lot to our ahead staying in

with Our next Nicole question Bank. DeBlase comes from Deutsche

ask Maybe a question power. on I could

guys to expect think provide accelerate confidence in the that little what fourth. guess customers I in you orders from you're bit about talk said you to a can that I you power equipment outcome? hearing

You twice although remarks, as Nicole. the on in as up XX of quarter taken we've new gas, bet, equivalent first And are quarters example, in year-to-date, I the levels which hit XQ third said our is X XX%. orders year. prepared an last I'll And for the orders power those we it. of gigawatts mean, in

at we tilt And very coming fourth we here, the similar with our do but to of not firm the from expect XXXX a stronger, if looking towards XXXX, to before XXXX. orders strongest our larger pipeline and it's up When America. look we'll we North quarter this see December XX, quarter be probably early, modestly although

in is reality Japan year in We time, of equation, hyperscaler is going but we've and the a we of than been a being America see large think dynamic as orders that booked East saying see been part 'XX, still for third quite is of U.S. how The quarter. -- some out 'XX to the exactly this heavy had more this the the have and today. order a we sitting we orders. proportion here North we that's dynamic Middle play announced

with Morgan next Andrew Our question from Percoco Stanley. comes

XXXXs And for EBITDA This clearly, is kind of your a of gas. particularly and I I a in Power want mean business you're level a seeing early back with demand, to to if lot you low-XXs But margin the bit a XXXXs, little stick look a business. of high-teens, was higher second. question. Power

growth get time that environment anything impede to next that kind entering curious kind around there this structure you there? I'm the pricing Gas, back is your of of or of to margin current now just might this ability in back supportive structurally that And different of wave is we're getting

business then. comparison start. growing Services Thanks, years Andrew. have been the at we've these since I that Candidly, all a of the today what would because mean, than we we much had larger fleet at have point

sustain got going the we've to a at stream for itself annuity start, time. incredible So an Services long that's

the to to relative The sense of larger, turbine is play to megawatts be of to in be turbines, this it's less or gas decade gigawatt second going the but going gas the the are half early still right? going what's XXXXs composition really substantially that the different out per in

will what profile, environment Now in, shifting the I'd relative environment. revenue half substantially really we're today. large second are start seeing we're a year pricing in today that today's to we to shipping the benefit pricing what in the new that we're than of full getting us And towards in 'XX 'XX orders of better on extent, HA in revenue call what today to

giving confidence have things margins XX a throughout than better that business, new better fleet a substantially keep those Analyst by a together with in XXXX profile the at And decade, with our much of look gas sentiment December part when combine should lot you're citing we're really going larger this and Day. and of to customer pricing, today a have that prior expanding more you you that's like X certainly that what investing to we services that the look forward of equipment definition that XX years

next Ritchie Goldman Sachs. Our with comes from question Joe

Scott, that effectively gigawatts met doubled market market know, a equipment months were it talking don't of, overnight. has And so about when XXXX. roughly, gas seems like basically by ago, power I it, a XX we call few we

so you years, business next an is this for about term, of from the as rate And kind that the I real longer run the think perspective? question few new have order

your relates that capacity, And own increasing give the we then next us Any on capacity. growth ability specifically, few it meet faster in as chain years? to can know supply the you're from you their to update

at XXXX. that visibility equivalent levels based at look XXXX than twice year-to-date, the should quarter orders year at I'd we there, that said fourth Joe. Thanks, being orders strongest I we we and then we XX we're as again, the gigawatts, be package quarter. our see and level before, minimum have for modestly last where were the XXXX, When XXXX, or for seeing say XQ on 'XX which, better

very There And for the a bit the of is we'll clearly beyond primarily you that get articulating. 'XX in that, front year, in that say to be a can work, going that very are us can pipeline healthy we into back quite next time we and of 'XX on with quarter filling and first of but XXXX. that we're really definition focused comfortable quickly by slots see

necessarily is XX And beyond middle of the at probably the level higher per 'XX. most XX than today in, see to of turbines lower XX but it gas 'XX, to to We that that materially because starts recently, ways that that that going year on and higher the go modestly don't sense. number end in makes we're above that the about cut if in we've talked tactical at when looking end capacity

material make not major months now adjustments. And we've it's and to XX, be recently year, run firm to chain XX on rate working with the to we're today's given secured that. extent to we've No up continuing gas beyond supply took headlines that just tactical capacity another turbines But likely really of that to X shift the us the updates a secure.

Yes. And one of from investment about we're that consider about the thinking this for you're does impact capacity. us a how building I thinking other to perspective out things as as think

come along that nice that those the about you nicely, are the in, payments. coming we're take as in of operating we as things and orders know, with down cycle orders One is

growing and last for to, making XX. call said as investments we're quarter pretty and in making way, that we've and investments about this it these And from thinking XX along it, been we I the we're even to call XX the clear units year a Scott think said

So the We're a the on really very we're disciplined capital And with think so of important kind funding really a and we, they're around customer orders, decisions team, into around directly levels. taking. are that's how build coming those making customers orders really management draw thinking are I investment making comes right? as that down to from in, your payments thing that

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

differently Just pivoting slightly power. within

growth As to proportion you SMRs about overall any new hear Would of the kind as a GEH, think awards how the frame initial would in here BWX the would you trajectory? here? How on love framing. expectations of you frame opportunity

I installed the XX get today couple example, we could You we at really X we from with least the restarting in mean, equipment of another existing with with can today. installed to mean plants I we added bet. nuclear, aren't that an U.S., see base to our of we that existing when we start of think have incremental have. have we and as as have base gigawatts plants gigawatts and that illustration, get add upgrades the capacity an nuclear running I

revenue I out and demand surge reactor. and nuclear than trickle say, decade to of through can decade. playing the -- late into in just case give of our that financials see the the So context modular orders in with cut sooner middle that's in that cycle of to nuclear We likely to the small in regard that

commercial tone even with also it activity have The modular existing where plants discussions to a existing with plants. accelerate reactors to of summer, exists that in the the within are is On now security that taking the the in to the conversations context nuclear right place bit reactor, really, small shifting here. security sentiment already add continuing little infrastructure apparatus more modular small of

we more conversation a been there be dynamic I a move there than the at at follows. that's forward that And think That to build XX last has were earnings continue July days to going will when the activity call. together new

ultimately, this getting commissioned in XXXX. XXX-megawatt power in us, to of comes the Canada For block first back

a for then can perspective a our mean start. become what income but meaningful not moving revenue and that is early capacity the last. next XXXX from about see really excited don't financially U.S. us, the revenue with a growth into We and it's new to growth going decade. really to And SMR perspective, the part statement of until really we're

it's But and a think future activities and until when contextualize are important our material of then the financials, I those really part growth. discussions going to it's going it healthy translate to And take becomes those right now. before very is to it to

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

seems hyperscalers of you It these their that the talk Just to to about the set is how expertise of particularly side changing. Can evolving? JDS' on nuclear the customer assets. lot about see a just channel headlines trying on question. in running sort follow up We profile, own is

you which on get turbines not your in gas are customers with back a big a customers I can Because reputation nuclear? how across don't and is shape necessarily customers traditional sort new in form? But do of do have of positive. share coming necessarily or fair you experience, have these them. And your disadvantaged see How gas way, class you any this

tripling nuclear, all nuclear capacity in and back Yes. above to the state year to when I conventional going mean, XX would about thinking last in going say be it's think blocks be added. that, world going dynamic of Andrew, ad. power There's about XX of heads with about XXXX, COP large on Dubai the in talking new the I nuclear to by I

those most There's going amount the shift are are customers small would serve incredible towards modular the an be market the going be nuclear growing that call to market. in clear, to To traditional of back still going sentiment of excited and about to really the that in in confidence archetype cases, have running sentiment a have are reactor to technologies be interested nuclear our it, multiple ultimately, of a nuclear operator that power, part lot We're new equation. of ability plants.

thrived customers their to of time the those And that operators arrangements more with firming unfold. up those decades. and for how end us what's to and that's are we and of will of customers, works between some the commercial have The bread a operators and traditional that exactly butter the arrangement with take assets materializing commercial lot nuclear

applicable an both a our that's nuclear, and what statement cases, to I really keep time established play And meaningful that would role chances both emphasizing market. about And technology But like in nuclear. and is market. to for gas especially serving this growing I is, with

have established in confidence cut we're and on a high And XXXX. block follow. of that's construction will as that And combustion commercial using that in our we're into XXX-megawatt next activity BWRX chamber established more that of of technology that first gives lot is degree Canada in following we power our to us project sentiment customer progress, a going fuel, year, first

Kaplowitz with comes Our next question from Citigroup. Andrew

Maybe wind. just on onshore

you can that onshore I December. the onshore, might be. still bookings in you flat little conservative the of wind kind you business? org inflection do update this a margin of understanding us you're an Could performance but single-digit support high said that the in At think when new you'll you sustain a again you kind on point, need had a maintain infection revenue, when of to in

'XX. into continue to the the you been to that backlog the to to just with flat next onshore see in much sit revenue that's X and profitability third we started see -- years, we've And quarter with When here of also Andy, ability profitable 'XX the that the relative we've see you'll year. profile. XXXX, today, profitability fourth we've more see Well, but in the revenue most wind a in in remixing in we so looking like we and improved quarter quarter generally had even similar flat had revenue on in

that that example. as apprehension have risk I need a of top don't lot going "orders the at to today don't we're that inflection" of We performance. lower, an line at sustain level is

I of of half into a default, would the floor wind the by So on onshore of this what escape much kind as is. very think XXXX performance second XXXX

a North let's dependent, very For where is us that business North and America in in are America. we contextualize

objectives, wind. the a onshore gigawatts There's XX single-digit number to We're needs going a of to XX year, to that be people have been in orders us reach year to gigawatts back to the to double-digit gigawatts industry to of that ultimately come that start is us the we see high new mid-teens orders. lot this cautious I'm U.S. when where commissioning and get COD consistently mid- cautious for our of believe

does to ready that but comes volume to that going need because yield a to to be we're go indications when the more. don't that quite date Now call see do, we're U.S. on going don't more going lot to it's to take that now, business not the all concerned say onshore is to decade, in my backwards. one that a that later although just I want we comments all you when leverage a I'm wind much profitable on like we're lead just that we going that to

top We level get we're We're with growth. growth line solid just foundational feel to yet. not that like line top will wind at performance a better with call ready onshore that

out of repeat can ] really as onshore Yes. we've to Vic of working efficient that [ been wind the kind cost to hard and of be. calls, that the make take something to And I last couple business think said that have it is sure in the team, specifically team wind team as and

Scott in than doing a obviously the put at to it, running to kind so, numbers be at to about around running And they've year. X,XXX rate turbines that. higher resized some We're a profitable business what said, of

say just because need respond your that wind we to to turn kind to question when in do I business? see around an orders inflection of to this order in So the

of see had wind profitability that margin giving an in management. of came into point. that half to that we We're backlog confidence see you does seeing we're up cost year Plus, the the that as us set based this for we XX upon which carry-on that the That's now, talked already in to really improvement about second starting I'll onshore year, about incremental inflection backlog. in profitability remind points us the what's

it. then through. off I of because because able everybody And these has place of to benefit jumping be in us the but hard to won't the incremental for say a stabilized growth levels, carry from we of pricing that good in are, at necessarily business, point a comes, better work really inflection kind when to

Strouse JPMorgan. from question next Our comes with Mark

the more XXXX back comment hyperscalers. to shifting of orders I the kind U.S. in towards So go about the power want and with the to equipment

are in times you progressing far conversations the difference X of are profile, of any as As as us, or like commonality as between that? the And you seeing H-class? are the any remind these with kind they as product versus aero then far with there financial you hyperscalers, that meaningful type can is kind interested in of anything lead mix kind of

is megawatts to I HA center with are question. starting than That's a which towards think trend centers would data single this bet, in center to look Mark. aeroderivative. discussions you start definitely number at do one parks from that because back centers shifting about think say You support in evolving of data can on just dependent location. if to multiple to more data XX XXX start, consistency gigawatt I size parks data turbine for gas -- the the goes Thanks the hyperscalers I And

healthy HA to at shift in to So were line to being years talking what a time there grid with maybe the have ago, we that thrive. power would air about is few for very this our towards set now gas turbines a Ireland these the applications that customers been is power baseload exact HA derivative product backup

just I almost we turbines XX And to of HA commissioned gigawatts mean a emphasize have few gas there. points today.

have We running. XXX over

you're more size run to that when We have that project exciting the that -- X level, the what is good with to million of substantial orders for U.S.-centric, then this equipment seeing look about you gas part do maybe very baseload you're we adding be but our to also to start into modestly year. going approaching HA better us, machines for a are And similar book us operating we're than to XXXX because is orders of turbines. economics, amount 'XX, hours XXXX, this in so orders more profile

life waited part on the and XX compelling. we economics the term why cycle So the to we really capacity that XX about. of make XX are this for economics in that services the especially we're a adding because services from confidence are September more because And good so the cycle life that's long capacity equipment just gas over with the us all the excited you've calories adds announcement for the to are in could calories year got opportunity the

frankly, payback you've these the so tight, margin run the at level attractive a was got long very quite the And but for baseload to keep because equipment time. to a are payback going

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

appreciate that could backlog HVDC the electrification And I here. you order demand in guess, wanted I XXXX. me market I on here. guess to squeezing have hit to into I heard a continues We've Yes. build. out specifically,

to So the and question the prices quarter-on-quarter have support off of on higher push is, here? you as And then of the leveled are continuing that demand to top do that, capacity kind electrification? you

triple excited I this about, talking we've been a for electrification more by question. year. with today. it is of the I the there's reframe was the I to about in beginning you what the mean appreciate I there's a a what cited moment. will Chris, just lot be backlog than mean 'XX of to mean -- just which be lot end

see continuing price environment. in are to We today's

an feel we've today. a that's there off, really there don't we leveled earlier mentioned in that Ken So wind, topped out in like way in onshore we're electrification. as where example, not

business point better, that capacity get -- the business of that our and just labor the really year coming of over business we better, transmission is we to the capacity have with double Part of CapEx. assets going doesn't worked the confidence a to about months things of transmission managing is, talk are require that high in we've degree remarks, shifts the electrification, managing XX% that prepared the we're of power X a the to why the hard intentional first is to like adding

XX% about require growth the double site that's of that does There's to expansion. CapEx

So not operations. it here. broadly, a a energy doing for while. reality we for to were is use if meet businesses a that with The say be would growing harder and us greenfield while around happening demand these been lot illustration it, to I've just for businesses this we call what's That's

That connection has that that drive that now the time, existing towards growth to that more railroads, than period same explicitly the already. part a capital allows the a of that others in to us the because financial we footprint was that is electrification, source for we're time most industrial using catalyst and industrial of drag. has overcapacity efficiently footprint efficiently has factory, had And footprint, an in big electricity

backlog because a the electrification their progress real year And to than growth quarter, make here, thought. where faster business the bit that's, we continuing seeing we continue on the faster mean executing revenue frankly, XX% saw anticipated we're third when it's I fulfill you to started. they're than in

November that and we're it what And our excited a budget on looks way like XXXX. now share But need we to that about trend. work with for through you in process

or we're say, allow ability context up explanation that this of industrial yes, very to demonstrating into to a in the going us backlog have long-winded a attractive very assets we is efficiently but that's a that's to lot way. grow manage to So substantially,

bit while fact color on growth of that piece little we're that the electrification year-over-year, has a continues I to of that up is our some large be, is HVDC the year while were excited of saw that those rates the seeing the the step that it, orders individual And last what put it the compares regional we're and think tougher comparisons about in a business perspective we biggest from order business, European historically are good. get

our only but because is still staying business it the Europe, But will both business portfolio. on just at important not really of things, and other in based of level, a what's that's a and good HVDC, we're North in not business North upon is tailwinds this about us multiyear continue to for they part America, expand the driving fastest-growing see We're that our for but the provide outlined. products Europe both really Scott grow electrification excited America those to and is dynamic comps

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

on dedication many as we're customers Everyone, thank company. our employees the for coming excited work to our that of do their interest months. you meeting. our together trust of often in wrap, to innings looking with and the we're forward continued December of analyst early forward for come. forward We talking in I to our XX you thank look trajectory and about looking the the everybody their I partners months journey We're do, their and you. GE for a our the continued for together want thank Michael, in to investment really your hard At in And exciting Vernova, us. having really

thanks, everyone. So

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

disconnect. now may You