Yahoo Finance UPDATE 1-GE Vernova reports wider-than-expected Q1 loss in first post-spinoff results
(Adds Ebitda details and analyst comment in paragraphs 8 & 11)
April 25 (Reuters) - General Electric's energy spin-off company, GE Vernova, reported a wider-than-expected first-quarter loss on Thursday, as weakness in its wind segment offset demand for natural-gas related equipment and services.
GE Vernova, which became an independent company this month following a three-way split of General Electric, provides services and equipment to the energy sector, operating through three main businesses - power, wind, and electrification.
The company's wind segment saw a 40% decline in orders on lower demand for onshore equipment as North American customers continue with the permitting processes for projects, the company said.
It had recently announced its decision to pivot away from the 18-MW turbine model, which led to New York State stalling three major offshore wind-energy projects.
In contrast, the power segment saw higher orders for gas turbines and more demand for gas power services due to outages, leading to a 6% jump in sales.
The company maintained it was an "encouraging start to the year", and that it expects "cash generation to improve meaningfully every quarter this year".
The company said it saw solid results with significant margin expansion across all its business segments.
It posted first quarter adjusted EBITDA of $189 million on revenue of $7.26 billion, which analysts said was driven by strength in its power and electrification segments.
The company reiterated its full-year revenue forecast of $34 billion to $35 billion.
On a per share basis, GE Vernova reported an adjusted loss of 41 cents in the first quarter. Analysts on average were expecting a loss of 37 cents, according to LSEG data.
"1Q24 was a miss, but should be the seasonal low point of the year," a Raymond James analyst said in a note, adding that the brokerage expects long-term revenue growth in the mid-single digits and EPS growth to be approximately twice of that. (Reporting by Mrinalika Roy in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber)
