GE Vernova reports higher revenue in Q3 on the back of power demand growth

Power equipment manufacturer GE Vernova announced higher revenue for the third quarter on Wednesday, as strong demand in power and electrification equipment helped offset weaker sales in wind.

GE Vernova will benefit from the global push to transition to renewable energies, as well as an expected surge in demand for power due to the proliferation of data centers.

The company's orders for its gas power equipment and services grew by 28%, while the revenue from electrification rose by 22%.

LSEG data shows that GE Vernova's overall revenue for the third quarter rose by 8% to $8.9 Billion, exceeding analysts' expectations.

The company's adjusted core profits fell short of expectations in the market, despite the higher revenue. This was due to the underperformance of the wind segment.

The adjusted core profit was $243 million. Analysts expected an average of $276 million.

The wind business of the company has been faced with several challenges including inflation in costs and issues related to supply chains. The company has also faced delays due to turbine blade failures in two major projects.

Wind segment reported a larger core loss due in part to the additional costs associated with these two projects, and a decline of 19% in orders due to lower onshore orders outside North America.

The company reported a fatality in the third quarter. (Reporting by Mrinalika Roy in Bengaluru; Editing by Shreya Biswas)

(source: Reuters)