Ge Vernova Inc Q3 2024 Earnings Call Transcript

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

Question: Julian Mitchell - Barclays Capital, Inc. - Analyst : Maybe just the first question, I'm circling back on Offshore as there was clearly a lot of news there in September. And maybe just remind us as you look today, how you're thinking about the pace of that $3 billion of Offshore backlog being worked down. And then there was a good update on the turbine blade issues in North America, and maybe just anything on what's going on with the UK project, please?

Question: Nicole DeBlase - Deutsche Bank - Analyst : Maybe I can ask a question on Power. I think you guys said that you expect Power equipment orders to accelerate in the fourth quarter. I guess, can you talk a little bit about what you're hearing from customers to provide confidence in that outcome?

Question: Andrew Percoco - Morgan Stanley - Analyst : Thanks for taking the question. I want to stick with Power for a second, a little bit of a higher-level question. But clearly, you're seeing a lot of demand, particularly in Gas. As I look back to the early 2000s and 2010s, I mean, your Power business was a high-teens, low-20s EBITDA margin business. I'm just curious now that we're entering this next wave of growth in Gas, is the current pricing environment supportive of getting back to that margin structure, or is there anything structurally different this time around that might impede your ability to get back there? Thank you.

Question: Joe Ritchie - Goldman Sachs Group, Inc. - Analyst : Hey, Scott. So when we met a few months ago, we were talking about a Gas Power equipment market of, call it roughly about 35 gigawatts by 2028. And it seems like that market is basically effectively doubled overnight. And so the real question I have longer term as you think about the next few years, is this the new run rate for that business from an order perspective? And then specifically as it relates to capacity, we know you're increasing your own capacity. Any update that you can give us from the supply chain on their ability to meet faster growth in the next few years.

Question: Julien Dumoulin-Smith - Jefferies - Analyst : And just pivoting slightly differently within Power. As you think about the BWX opportunity here and GEH, how would you frame SMRs as a proportion of the overall growth trajectory? How would you frame any initial expectations on awards here? Would love to hear the new framing.

Question: Andrew Obin - Bank of America - Analyst : Yeah. Just to follow up on JDS's question, you know it seems that the customer profile, particularly on the nuclear side, is changing. We see a lot of headlines about hyperscalers trying to get their own expertise in running these aspects. Can you just talk about how the channel is evolving? And are you disadvantaged in any way, shape, or form? Because I can see how in gas turbines, your traditional customers coming back is a big positive, but these customers do not necessarily have experience with you. You don't necessarily have a reputation with them. How do you get your fair share from this new class of customers across gas and nuclear? Thank you.

Question: Andy Kaplowitz - Citibank Inc. - Analyst : Maybe just on Onshore Wind, I think you said that you can maintain a high-single digit margin on flat revenue, but you're still a little conservative of when a new orders inflection might be. At this point, with the understanding that you'll update us again in December, could you sustain that performance you had in Onshore? When do you need an inflection in Onshore Wind bookings to support the business?

Question: Mark Strouse - JPMorgan Chase & Co - Analyst : I want to go back to the comment about the Power equipment orders in 2025 and shifting more towards the US with the hyperscalers. As you are progressing with these conversations with the hyperscalers, are you seeing any commonality in the mix of product type that they are interested in as far as aero versus H-class? And then can you remind us, is there any meaningful difference between the two as far as lead times or financial profile, anything like that?

Question: Chris Dendrinos - RBC Capital Markets - Analyst : Yes, I appreciate you squeezing me in here. I guess I wanted to hit on Electrification here. I guess, specifically, order demand continues to build. We've heard that the HVDC market could have a backlog out into 2030. So the question is, do you have the capacity to support the demand in Electrification? And then on top of that, are you continuing to push prices higher quarter on quarter? Is that leveled off here?