3 Things You Need to Know About General Electric's Newest Business
When General Electric (NYSE: GE) appointed Larry Culp as CEO in 2018, its power business was front and center of its problems. Less than four and a half years later, it's the core strength of GE Vernova, a company set to be spun off on April 2. Here's a look at the business in light of the recent Investor Day presentation and what investors can expect from the company.
In a previous article on GE Vernova, I outlined the company's revenue breakout, earnings trajectory, importance of its wind business, and impressive financial profile. Now, it's time to turn to management's updated guidance for the company.
The first thing to note is that the company looks highly attractive based on management's guidance. Let's focus on earnings before interest, taxation, depreciation, and amortization (EBITDA) for the moment, playing with the guidance in the table below. We'll assume a 6% EBITDA margin in 2024 and then 7% in 2025 while using the midpoints of revenue guidance. That results in EBITDA rising from $0.6 billion in 2023, to $2.1 billion in 2024, and then $2.5 billion in 2025.
Source Fool.com
