By Jess Aloe
GE is aiming to complete its spin off of GE Vernova in the beginning of the second quarter of 2024.
When the split is complete, shares of Cambridge-based GE Vernova will be listed on the New York Stock Exchange under the symbol ‘GEV,’ while shares of Ohio-based GE Aerospace will continue to trade under the ticker symbol “GE.”
The company made the announcement before the markets opened Tuesday, in advance of reporting its Q3 earnings. It will be one of — although not the final — earnings report before the split.
GE (NYSE:GE) reported another strong quarter, beating analyst expectations and leading it to raise its full-year earnings per share guidance to a $2.55 to $2.65, up from July’s guidance of $2.10 to $2.30.
GE executives expect GE Aerospace to finish the year with a profit of about $6 billion, while forecasting Vernova will report a loss between $100 to $300 million. GE Vernova’s grid and onshore wind businesses both reported a profitable quarter, CEO Larry Culp said, but the profits there were offset by pressures in the offshore wind sector.
On the investor call, Culp said the company expects nearly $1 billion in losses in its offshore wind business this year, with similar losses projected for 2024. However, Vernova’s performance is “strengthening pre-spin,” Culp said, pointing to increasing orders for its grid business, which is tracking toward full-year profitability, and onshore wind reaching profitability.
Culp told analysts he expects GE Vernova’s offshore wind business to “improve sequentially from here,” although he acknowledged offshore wind “will be difficult.”
“With our two largest renewable energy businesses delivering, and Power’s continued strength, we remain highly confident in GE Vernova’s spin-off next year,” Culp said. GE Vernova expects to soon announce the independent company’s board of directors. Both GE Vernova and GE Aerospace plan to hold investor days in early March.
Meanwhile, GE Aerospace saw strong growth, with orders growing 34% and revenue up 25%, led by demand for commercial engines and services, as well as growth in its Defense segment.
The spinoff is subject to final approval from the GE board of directors.
GE shares were up 6.7% as of 10:30 a.m. following the call, bringing the company’s market cap to $124 billion.