GE Vernova predicts lower revenue for the wind segment in 2019.

GE Vernova announced on Tuesday that it has lowered its revenue forecast for its wind segment in the coming year due to delays at two major project caused by incidents involving their turbines.

In a press release, the company said that it expects revenue to fall by single digits between 2025 and this year. It also stated that they expected revenue to remain flat in 2019.

GE Vernova and the offshore wind industry as a whole have been battling cost inflation and supply-chain challenges. The company announced it would be cutting hundreds of jobs from its offshore segment.

Gas turbines from GE Vernova and their electrical grid equipment have been in high demand to meet the power requirements of data centers.

Scott Strazik, CEO of Strazik Group, said: "We will drive growth and innovation through $9 billion cumulative capex and R&D investment planned until 2028. This includes an increase of approximately 20% in R&D spending expected in 2025."

The company expects to increase revenues between $34 billion and $35 billion next year, compared with the upper end of expected revenue in 2024.

The free cash flow is expected to rise to $2 billion to $2.5 billion by 2025 from $1.3 billion to $1.75 billion this year.

The company has also authorized a $6 billion share buyback.

In extended trading, shares of the company fell 3.8%.

(source: Reuters)