Ge Vernova Inc at Morgan Stanley Laguna Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Percoco - Morgan Stanley - Analyst : Yes, that's great. And maybe just to start out at a high level, kind of underpinning all of this, I think, is something that probably most people in this room are familiar with, and that's growing power demand in the US, electrification, decarbonization. Maybe just talk about where are you seeing most of the benefit from a power demand perspective, gas, electrification, wind? And where you've gotten most incrementally excited over the last six months since the last Investor Day?

Question: Andrew Percoco - Morgan Stanley - Analyst : Yeah, that makes sense. And maybe sticking the power for a second, and gas power in particular. It sounds like you're planning on expanding capacity by 2026. Can you maybe just discuss, is that mostly going to the US, maybe a regional breakdown, and maybe also some of the pricing trends you've seen in the US? I'm assuming the reason you're going ahead is because you've seen pricing react to the demand signal. So just discuss kind of what you're seeing by region and also by price?

Question: Andrew Percoco - Morgan Stanley - Analyst : And then on the service side, you mentioned obviously asset owners want to run their existing plants as much as they can. Just discuss, are you seeing any change in customer behavior here in terms of outages and in terms of when they want to upgrade their assets and when they want to service them to make sure they're getting the most out of their fleet?

Question: Andrew Percoco - Morgan Stanley - Analyst : Makes sense, makes sense. And maybe switching gears to electrification. It sounds like obviously your fastest-growing segment. It's a segment you're very excited about. Utilities that we talk to, obviously talk about how transformers are hard to get, and the renewal developers can't get their hands on transformers. It's becoming a big issue for the build-out of renewables in the US. Maybe just talk about regionally where you're seeing the most demand? Obviously, US, we're seeing a lot of power demand. Is that where you're seeing the most growth? I think historically, it has been mostly outside of the US business for you guys.

Question: Andrew Percoco - Morgan Stanley - Analyst : Talk about where you're seeing that mix shift come from?

Question: Andrew Percoco - Morgan Stanley - Analyst : You mentioned taking price in power and gas, and I am sure you're taking price and electrification, transformers. As you maybe lean into the North America market a little bit more, can you still do that? Is there still the ability to take price as you're scaling in a new market or not new market, but trying to scale out that market? Or is it more Europe-centric where you can take the price?

Question: Andrew Percoco - Morgan Stanley - Analyst : Great. And then maybe switching to the last segment, wind, maybe starting with offshore wind. There has been some challenges in that market for you guys over the last few months. Just given that it sounds like Vineyard Wind making progress, Dogger Bank making progress. Can you gave us a latest update in terms of 3Q, maybe EBITDA being a little bit lower because of wind? Just discuss what's going on there. Is it just remediation work that you're taking a charge in the third quarter? Is that going to completely go away in the fourth quarter? Just give us some sense for timing on the trajectory there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 3:10PM, GEV.N - Ge Vernova Inc at Morgan Stanley Laguna Conference

Question: Andrew Percoco - Morgan Stanley - Analyst : Yeah. And then in onshore, obviously data centers, corporations, they're obviously interested in decarbonization, which should lend itself for wind growth at some point in the future. I think you guys have been somewhat cautious in terms of the inflection point in terms of when we see growth there. Any updated thoughts in terms of what you're seeing from customers in onshore wind in the US specifically?

Question: Andrew Percoco - Morgan Stanley - Analyst : And so far this year, you guys have done a great job at hitting your margin targets, accelerating your margin targets. I think a lot of that has come from also doing a good job on costs and taking costs out of the business. Can you just talk about -- give us an update in terms of how you've been able to do that? How much is more? How much is left to come this year? And then as a second part of that question, you've talked a lot about taking price across electrification, across gas power. Putting this all together, what does the margin profile of this business look like in '26, '27 and '28?

Question: Andrew Percoco - Morgan Stanley - Analyst : And on the pricing side, I think the one piece is, you're obviously seeing the pricing today. That doesn't convert for two, three, four years for a lot of these markets?

Question: Andrew Percoco - Morgan Stanley - Analyst : So this is a long-term margin improvement? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 3:10PM, GEV.N - Ge Vernova Inc at Morgan Stanley Laguna Conference

Question: Andrew Percoco - Morgan Stanley - Analyst : And then maybe just to close it out on capital allocation, how you're thinking of -- obviously you talked about having a very strong balance sheet, strong cash position, going to be building cash in the back half of the year and presumably into 2025. Usage of cash, how does the Board, how does the management team think about usage of cash and how they prioritize that?

Question: Andrew Percoco - Morgan Stanley - Analyst : Makes sense. With the team that we got here, I want to pause to see if there's any questions in the audience. Unidentified Participant It's Max from Morgan Stanley. I think there's a lot of questions around kind of where the profitability of these sort of gas businesses have been in the past, sort of 20% margins, but the service is going to be still a massive part of that revenue and profitability. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 3:10PM, GEV.N - Ge Vernova Inc at Morgan Stanley Laguna Conference

Question: Andrew Percoco - Morgan Stanley - Analyst : Any other questions?

Question: Andrew Percoco - Morgan Stanley - Analyst : We covered a lot of ground.

Question: Andrew Percoco - Morgan Stanley - Analyst : Let's see, maybe with two minutes left, I'm going to ask a very long-term question.

Question: Andrew Percoco - Morgan Stanley - Analyst : But SMR has gotten a lot of attention in the news recently, especially around data centers. CEO of a data center company is talking about SMR. You guys have an SMR technology.

Question: Andrew Percoco - Morgan Stanley - Analyst : Has there been a noticeable change in customer conversation? I know it's maybe next decade technology, but just discuss kind of what you're seeing there? And maybe is there an opportunity to get capital from some of these tech companies to accelerate the development of that technology?

Question: Andrew Percoco - Morgan Stanley - Analyst : Makes sense. Well, we're up on time. Thanks, everyone, for joining. Scott, thank you for joining us. It has been a great discussion.