GE Vernova has projected higher revenues for 2025, anticipating $36 billion – $37 billion, up from $34 billion – $35 billion expected in 2024. The announcement comes as the company grapples with challenges in its wind energy division but sees strong performance in its gas turbine and electrical grid segments.
GE Vernova plans to invest ~$4 billion in capex and ~$5 billion in R&D through 2028 to power growth and innovation.
GE Vernova CEO Scott Strazik, speaking at an investor presentation in New York, said the company resumed turbine installations at two offshore wind farms that had faced equipment failures earlier this year. However, he noted that the company is not currently taking new orders for offshore wind turbines and expects continued losses in the segment through 2025.
“We aren’t going to chase bad deals,” Scott Strazik emphasized, while forecasting little to no growth in onshore wind over the next three years. The wind division has faced substantial financial setbacks, losing hundreds of millions of dollars due to delays at major offshore projects, including Vineyard Wind off Massachusetts, where a blade failure halted construction for months. A subsequent investigation revealed quality control issues at a Quebec turbine blade factory.
The global offshore wind sector has been hindered by cost inflation and supply chain challenges. Despite these setbacks, GE Vernova is witnessing increasing interest in its nuclear and electrical grid software offerings, Reuters news report said.
The company, which became independent this year following General Electric’s three-way split, has focused on cost reductions and profitability improvements. Scott Strazik announced expectations for a mid-single-digit decline in revenue in 2025, contrasting with flat revenue forecasts for this year.
Robust demand for gas turbines and electrical grid equipment has provided a counterbalance to the wind segment’s struggles. GE Vernova expects orders for 20 gigawatts of gas equipment in 2024, nearly doubling the 11 GW recorded last year. By 2027, the company aims to produce 80 gas turbines annually, up from 55 currently.