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GE Vernova Spin-Off Date: Renewable Energy, Power Business Coming Q2 2024

October 24, 2023 by Joe Panettieri

GE Vernova expects to become a standalone, publicly traded ($GEV) renewable energy and power business in Q2 of 2024, GE announced as part of its Q3 2023 earnings results.

In coordination with the GE Vernova spin-off, the company also will launch GE Aerospace as its own business. The moves follow the GE HealthCare spin-off of 2023.

GE Vernova: Renewable Energy and Power Quarter Revenues

Scott Strazik, CEO, GE Vernova

GE Vernova is showing financial momentum ahead of the spin-off -- though financial pressures remain intense in the offshore wind power market.

In Q3 of 2023, the company said:

  • Renewable energy revenues were $4.151 billion, up 15% from Q3 of 2022.
  • Power revenues were $3.974 billion, up 13% from Q3 of 2022.

But if you listen closely, you'll learn that GE expects its offshore-wind operations to post annual losses of about $1 billion in 2023 and 2024 as the industry struggles with rising costs. Bloomberg reported.

In prepared statements about the Q3 of 2023 business performance, the company said:

  • Renewable Energy: Orders of $3.9 billion increased 5% reported and 3% organically, led by Grid and higher equipment at Onshore Wind in North America. Revenues of $4.2 billion increased 15% reported and 14% organically* driven by equipment growth at Grid, Onshore Wind in North America, and Offshore Wind. Segment margin of (7.6)% improved by 1,840 basis points reported and 1,990 basis points organically*, driven by the non-repeat of higher warranty and related reserves in the third quarter of 2022, as well as better pricing and productivity. Notably, both Grid and Onshore Wind were profitable in the quarter.
  • Power: Orders of $4.3 billion grew 2% reported and contracted (1)% organically with higher heavy duty gas turbines offset by lower Aeroderivative units and a slight decline in services. Revenues of $4.0 billion grew 13% reported and 9% organically, largely due to price and higher scope on heavy-duty gas turbine and Aeroderivative equipment. Services revenue also grew this quarter. Segment margin of 6.0% expanded 200 basis points reported and organically, driven by volume, pricing, and productivity, which more than offset inflation pressure.

GE Vernova Timeline: Preparing for the Spin-Off

GE has made numerous moves to prepare for the renewable energy and power business spin-off. Key business moves include:

  • September 2023: GE Vernova and EnergyHub partnered to help electric utilities manage distributed energy resources (DERs).
  • September 2023: Launched a pilot program for CERius, a carbon emissions management software platform "designed to help energy companies progress toward their net-zero goals using data precision and abatement planning capabilities." CERius general availability is expected in early 2024.
  • August 2023: Hired Owens Corning veteran Ken Parks as CFO, and Vic Abate as CEO of the company's Wind segment.
  • August 2023: Signed multi-year agreement with Amazon Web Services (AWS) to help industrial companies and utilities "accelerate digital transformation using cloud-based Proficy software solutions," the companies said.
  • June 2023: Named Dan Garceau as operations and lean leader. Garceau will guide GE Vernova lean strategy, overseeing the Global Supply Chain, Health, Safety & Environment, Quality, Indirect Sourcing and Facilities. Also, Pablo Koziner joins as strategy leader. Koziner will focus on helping further operationalize business strategies horizontally as well as oversee the GE Vernova Advanced Research Center, the company said.
  • May 2023: GE Vernova will invest $50 million at its Schenectady, New York, facility and hire approximately 200 new full-time employees including skilled union operators, manufacturing engineers, and front line leadership to establish a new manufacturing assembly line for its onshore wind business. The site will assemble three key components for GE Vernova’s 6.1 MW turbine.

GE Vernova Spin-Off Timing, Date: Executive Perspectives

GE Aerospace CEO Larry Culp
GE Aerospace CEO Larry Culp

In a prepared statement about the business breakup, GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said: “It’s been nearly two years since we announced our plan to create three independent, investment-grade, industry leaders. We’re now closing in on our final step—spinning off GE Vernova and launching GE Aerospace, following the successful spin-off of GE HealthCare earlier this year. Our teams are building momentum, and we’re excited to be with so many of our valued customers and industry peers on the New York Stock Exchange in the beginning of the second quarter of 2024.”

GE Vernova CEO Scott Strazik added: “Today’s milestone demonstrates the progress our team is making toward spinning off GE Vernova as an independent company driving both electrification and decarbonization. We’re focused on delivering for our stakeholders while positioning our company for long-term success, and we are excited to launch GE Vernova on the New York Stock Exchange.”

Related: See all GE Vernova news here.

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