GE Vernova Inc (GEV) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to GE Vernova's First Quarter 2024 Earnings Conference Call. (Operator Instructions) My name is Liz, and I will be your conference coordinator today. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Michael Lapides, Vice President of Investor Relations. Please proceed.

女士們先生們，美好的一天，歡迎參加 GE Vernova 2024 年第一季財報電話會議。 （操作員說明）我叫 Liz，今天我將擔任您的會議協調員。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想將會議議程交給今天會議的主持人、投資者關係副總裁 Michael Lapides。請繼續。

Thank you. Welcome to GE Vernova's First Quarter 2024 Earnings Call. I'm joined today by our CEO, Scott Strazik; and our CFO, Ken Parks. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in the presentation slides available on our website.

謝謝。歡迎參加 GE Vernova 2024 年第一季財報電話會議。今天我們的執行長 Scott Strazik 也加入了我的行列。以及我們的財務長肯‧帕克斯 (Ken Parks)。我們的電話會議發言將包括 GAAP 和非 GAAP 財務業績。公認會計原則和非公認會計原則措施之間的調節可以在今天的新聞稿和我們網站上的簡報幻燈片中找到。

During this call, we will make forward-looking statements about our performance. These statements are based on how we see things today. However, while we may elect to update these forward-looking statements at some point in the future, we specifically do not have any obligation to do so. As described in our SEC filings, actual results may differ materially due to risks and uncertainties. And with that, I'll hand the call over to Scott.

在本次電話會議中，我們將對我們的業績做出前瞻性陳述。這些陳述是基於我們今天看待事物的方式。然而，雖然我們可能選擇在未來某個時候更新這些前瞻性陳述，但我們明確沒有任何義務這樣做。正如我們在 SEC 文件中所述，由於風險和不確定性，實際結果可能存在重大差異。這樣，我就把電話轉給史考特。

Thanks, Michael. Good morning, everyone, and welcome to our first earnings call after successfully completing our launch as an independent company on April 2nd. We delivered solid results in the first quarter and I'm pleased with how we are executing on the strategy we laid out at our Investor Day on March 6. We're excited about the opportunity ahead for GE Vernova, a purpose-built company to electrify and decarbonize the world.

謝謝，麥可。大家早安，歡迎參加我們在 4 月 2 日成功推出獨立公司後的第一次財報電話會議。我們在第一季取得了穩健的業績，我對我們在 3 月 6 日投資者日制定的策略的執行情況感到滿意。電氣化和脫碳。

Even in the last 7 weeks since our Investor Day, the drumbeat of dialogue is only growing louder with the customers and policymakers on the challenges and opportunities ahead to meet growing demand while accelerating our decarbonization pathway. These macro trends are creating real opportunities for us to continue to lead in the energy transition while we are running our businesses better, driving disciplined growth, margin expansion and higher free cash flow.

即使在投資者日之後的最後 7 週內，與客戶和政策制定者就滿足不斷增長的需求同時加速脫碳進程所面臨的挑戰和機遇進行對話的聲音也越來越大。這些宏觀趨勢為我們創造了真正的機會，使我們能夠繼續引領能源轉型，同時更好地經營我們的業務，推動有序成長、利潤擴張和更高的自由現金流。

If we shift to the left-hand side of the page, Lean remains at our core, driving continuous improvement in safety, quality, delivery and cost. And as we do with most of our meetings at GE Vernova, I want to start today on safety. Our focus here is driving real results with our injury and illness rate improving 5% over the last 12 months. We have had no fatalities year-to-date and we'll always run GE Vernova with safety as the top priority to ensure every employee, contractor and partner we work with goes home safely each day.

如果我們轉到頁面左側，精益仍然是我們的核心，推動安全、品質、交付和成本的持續改進。正如我們在 GE Vernova 舉行的大多數會議一樣，我想從今天開始討論安全問題。我們的重點是推動真正的成果，在過去 12 個月裡，我們的受傷和盛行率降低了 5%。今年迄今為止，我們沒有發生任何死亡事故，我們將始終將安全作為營運 GE Vernova 的首要任務，以確保與我們合作的每位員工、承包商和合作夥伴每天都能安全回家。

To give a little more color on Lean, we executed on over 800 Kaizen events in Q1'24 alone. And I'd like to share with you an example of the progress we are making with one of the Kaizen events where I participated for 3 days in January in our Grid Automation business in Ontario, Canada. Grid Automation is an important business inside Electrification that provides protection and controls for electrical substations on the grid, in addition to solutions for monitoring and diagnostics for essential electrical equipment like transformers and breakers. This business is experiencing double-digit top line growth, but still has parts of its supply chain using batch processing for inventory.

為了讓精實更加生動，我們僅在 24 年第一季就執行了 800 多項 Kaizen 活動。我想與您分享一個我們在 Kaizen 活動中取得的進展的例子，我在一月份參加了加拿大安大略省電網自動化業務的三天活動。電網自動化是電氣化領域的重要業務，除了為變壓器和斷路器等基本電氣設備提供監控和診斷解決方案之外，還為電網上的變電站提供保護和控制。該業務正在經歷兩位數的營收成長，但其部分供應鏈仍使用批量處理庫存。

At the Kaizen event, 3 teams executed on transforming batch processing of generator protection panels into a lean line with single piece flow, focusing on pre-wiring activity first. Since the Kaizen event in January, we've seen our work in progress inventory reduced by over 50%. Output has increased 15%, and we've decreased the distance parts travel at the site by roughly 80% for this pre-wiring. This is just one example of what is happening every week across GE Vernova to enable us to decrease delivery times, increase output and lower costs, ultimately improving outcomes for our customers.

在 Kaizen 活動中，3 個團隊將發電機保護板的批量處理轉變為單件流程的精實生產線，首先專注於預接線活動。自 1 月的 Kaizen 活動以來，我們的半成品庫存減少了 50% 以上。在此預接線過程中，產量增加了 15%，我們將零件在現場的移動距離減少了約 80%。這只是 GE Vernova 每週發生的事情之一，這些事情使我們能夠縮短交貨時間、增加產量並降低成本，最終改善客戶的成果。

In addition to embedding Lean within our facilities, we are also using Lean to simplify our business operations and reduce our costs. Our Q1 G&A growing versus Q1'23 is not one of the areas our leadership team is happy about as we sit here in April, but our expenses now reflect the additional cost of our standup as a public company, as well as the cost transferred from GE corporate on IT, Finance, and HR. We are laser-focused on action with urgency, leveraging Lean to eliminate waste in our G&A processes.

除了將精益融入我們的設施之外，我們還利用精益來簡化我們的業務運作並降低成本。與2023 年第一季相比，我們第一季的一般管理費用成長並不是我們的領導團隊感到高興的領域之一，因為我們四月坐在這裡，但我們的費用現在反映了我們作為上市公司的站立會議的額外成本，以及從GE 公司的 IT、財務和人力資源業務。我們高度關注緊急行動，利用精益消除 G&A 流程中的浪費。

Now I'd like to spend a minute on the right-hand side of the page on our 3 business segment trends and the markets they serve. Our Power businesses, led by Gas Power and the over 7,000 gas turbines in the fleet are continuing to see strong uptick in demand. Our utilization of the gas fleet depending on geography is growing low-single-digits, driving continued strength in our high-margin services business. In addition, with expected increases in electricity demand growth in the coming years, along with a continued shift away from coal, interest in adding incremental Gas capacity is growing. Customers are focused on how capacity additions this decade can be decarbonized in the next decade with both hydrogen and carbon capture. Gas Power Services orders increased double digits in the first quarter, and equipment orders grew 75% versus last year, showing the robust demand for services into our installed base and trends for new gas capacity.

現在我想在頁面右側花一分鐘時間介紹我們的 3 個業務部門趨勢及其所服務的市場。以燃氣發電為首的我們的電力業務以及機隊中的 7,000 多台燃氣渦輪機的需求持續強勁增長。根據地理位置，我們對天然氣船隊的利用率正在以低個位數成長，推動我們高利潤服務業務的持續發展。此外，隨著未來幾年電力需求成長的預期增加，以及對煤炭的持續轉向，增加增量天然氣產能的興趣正在增長。客戶關注的焦點是如何透過氫和碳捕獲在未來十年實現脫碳。第一季天然氣發電服務訂單成長了兩位數，設備訂單較去年成長了 75%，顯示我們的裝置基礎對服務的強勁需求以及新天然氣產能的趨勢。

We are accelerating our focus and our strategy working with our supply chain partners on how to potentially create incremental capacity to meet this growing demand. I, along with others on the leadership team, are spending time with the team in Greenville in a few weeks to focus specifically on this.

我們正在加快與供應鏈合作夥伴合作的重點和策略，研究如何潛在地創造增量產能來滿足這一不斷增長的需求。我和領導團隊的其他人將在幾週後與格林維爾的團隊一起度過，專門關注這個問題。

Turning to Wind. We continue to expand margins as we improve this business, benefiting from a better Onshore Wind backlog in a lower cost structure in total. Even in a very low volume Q1 with just over $1 billion of Onshore Wind revenue, the Onshore Wind business still delivered positive EBITDA for the third straight quarter. As discussed at 4Q earnings, we expect second half revenue will be substantially higher than first half revenue with a larger North America mix. While we remain cautious on the exact timing of significant Onshore Wind orders growth in the U.S. as our customers navigate the challenges that come with permitting new projects, we are very excited about where this business performance can go as the orders and revenue accelerate in the medium term. In Offshore, we are working through our existing backlog. And while we believe Offshore is key to the energy transition, we will remain highly selective on new orders.

轉向風。隨著我們改善這項業務，我們繼續擴大利潤，受益於總成本結構較低的陸上風電積壓情況。即使第一季銷量非常低，陸上風電收入略高於 10 億美元，陸上風電業務仍連續第三個季度實現正 EBITDA。正如第四季度收益中所討論的，我們預計下半年收入將大幅高於上半年收入，北美地區的業務規模更大。雖然我們對美國陸上風電訂單大幅增長的確切時間持謹慎態度，因為我們的客戶面臨著新項目許可帶來的挑戰，但隨著訂單和收入在中期加速增長，我們對業務業績的發展感到非常興奮學期。在離岸業務方面，我們正在處理現有的積壓訂單。儘管我們相信離岸風電是能源轉型的關鍵，但我們仍將對新訂單保持高度選擇性。

Finally, on Electrification, our fastest-growing segment. Profitable growth continues to accelerate as customers modernize and invest in the grid. Significant demand exists for a number of our products, such as transformers and switch gears, products key to ensuring a reliable electricity system and for connecting new generation. Orders this quarter were over 2x revenue, which we expect will drive revenue and profit growth well into the future given healthy margins on what we added to backlog. Of our 3 business segments, Electrification is the one where we have the best opportunity to challenge ourselves on both growth and margins we can achieve in the medium term, given this segment has the strongest demand and pricing dynamics.

最後，關於電氣化，我們成長最快的領域。隨著客戶現代化和對電網的投資，獲利成長持續加速。我們的許多產品存在巨大需求，例如變壓器和開關設備，這些產品對於確保可靠的電力系統和連接新一代至關重要。本季的訂單超過收入的 2 倍，鑑於我們增加的積壓訂單的利潤率良好，我們預計這將在未來推動收入和利潤的成長。在我們的 3 個業務領域中，電氣化是我們最有機會在中期實現成長和利潤方面挑戰自我的領域，因為該領域的需求和定價動態最為強勁。

Turning now to our first quarter performance, where we delivered a solid start to the year. We will continue to be disciplined on our top-line growth, and Q1 had orders down (1)% and organic revenue growth of 5% versus the prior year. Our backlog continued to grow, up over $8 billion compared to Q1'23, with healthy margins. Overall, we expanded margins increasing almost 500 basis points. All 3 segments improved margins driven by price, productivity and continued cost reductions, combined with high-single-digit services growth.

現在轉向我們第一季的業績，我們為今年提供了一個良好的開端。我們將繼續嚴格控制營收成長，與前一年相比，第一季訂單下降 (1)%，有機收入成長 5%。我們的積壓訂單持續成長，與 2023 年第一季相比增加了 80 億美元以上，利潤率也不錯。整體而言，我們的利潤率增加了近 500 個基點。在價格、生產力和持續成本降低以及高個位數服務成長的推動下，所有三個細分市場的利潤率均有所提高。

In the quarter, we improved free cash flow compared to last year and expect a meaningful acceleration in cash flow as we move through the year. We are reaffirming the guidance provided at Investor Day in March. For more details around that and our first quarter performance. I will turn the call over to Ken.

在本季度，與去年相比，我們的自由現金流有所改善，並預計隨著今年的進展，現金流將出現有意義的加速。我們重申三月投資者日提供的指引。有關該問題和我們第一季業績的更多詳細資訊。我會把電話轉給肯。

Thanks, Scott. Turning to Slide 5. I'll speak to our results on an organic and adjusted basis, which best represents the underlying performance of our business. As Scott mentioned, we delivered solid results with significant EBITDA margin expansion in each of our segments and continued improvement in free cash flow. Orders reached $9.7 billion and were approximately 1.3x first quarter revenue, further expanding our backlog to $116 billion. Year-over-year, orders declined slightly as lower equipment orders in Wind and Electrification more than offset strong equipment orders in Power and double-digit growth in total service orders.

謝謝，斯科特。轉向投影片 5。正如斯科特所提到的，我們取得了堅實的業績，每個部門的 EBITDA 利潤率均大幅增長，自由現金流持續改善。訂單達到 97 億美元，約為第一季營收的 1.3 倍，進一步將我們的積壓訂單擴大至 1,160 億美元。與去年同期相比，訂單略有下降，因為風電和電氣領域設備訂單的減少抵消了電力設備訂單強勁和服務訂單總額兩位數增長的影響。

Importantly, we continue to drive our strategy focused on disciplined, profitable growth. As a result, equipment margin in backlog remained healthy. Revenue grew 5% with strength in Electrification and Power, partially offset by lower revenue in Wind. Services were strong, growing 8% led by Power. All 3 segments benefited from positive price in the quarter. EBITDA margins expanded 470 basis points year-over-year, with all segments delivering at least 300 basis points of expansion in the quarter. The first quarter expansion includes the impact of stand-alone costs in line with our expectation. These costs are not included in the prior year results.

重要的是，我們將繼續推動專注於有紀律的獲利成長的策略。因此，積壓的設備利潤保持健康。由於電氣化和電力業務的強勁增長，收入增長了 5%，但部分被風能收入下降所抵消。服務業表現強勁，在 Power 的帶動下成長了 8%。所有三個細分市場都受益於本季的積極價格。 EBITDA 利潤率年增 470 個基點，本季所有業務部門均實現至少 300 個基點的擴張。第一季的擴張包括獨立成本的影響，符合我們的預期。這些費用不包含在上一年的業績中。

Margin expansion was driven by price, productivity and volume. We also continue to benefit from our announced restructuring actions, which together, these more than offset inflation and higher R&D investments. The first quarter is our seasonally lowest free cash flow quarter, followed by sequentially improving quarters as the year progresses. While we had a net outflow of $661 million, this was an approximately $150 million improvement over last year and was largely driven by improved earnings, partially offset by higher working capital outflows. Working capital was an approximately $500 million outflow in the quarter, driven by inventory build as we prepare to deliver second half volume along with higher disbursements partially due to settlements of payables with GE in preparation for the spin. Increased milestone collections on equipment projects partially offset these outflows.

利潤成長是由價格、生產力和銷售所推動的。我們也繼續受益於我們宣布的重組行動，這些行動加在一起，足以抵消通貨膨脹和更高的研發投資。第一季是我們季節性自由現金流最低的季度，隨著時間的推移，隨後的季度也將連續改善。雖然我們的淨流出為 6.61 億美元，但這比去年增加了約 1.5 億美元，這主要是由於盈利改善所致，部分被營運資本流出增加所抵消。本季營運資金流出約 5 億美元，主要是由於我們準備交付下半年銷售量以及增加支出，這主要是由於庫存增加所致，部分原因是為準備分拆而與 GE 進行了應付帳款結算。設備項目里程碑收款的增加部分抵消了這些資金外流。

Turning to Power on slide 6. The segment delivered strong first quarter results with orders and revenue growth as well as EBITDA margin expansion. Orders grew 24%, led by higher equipment orders at Gas Power. During the first quarter, we booked 8 HA gas turbine orders, 4 more than the same quarter last year and equal to HA orders in the full year of 2023. We also booked orders for 18 Aeroderivative units. Services grew low-double-digits, driven by Gas. Revenue grew 4%, higher outages drove Gas services growth along with favorable price.

轉向幻燈片 6 上的 Power。在 Gas Power 設備訂單增加的帶動下，訂單增加了 24%。第一季度，我們預訂了 8 台 HA 燃氣渦輪機訂單，比去年同期增加了 4 台，相當於 2023 年全年 HA 訂單。在天然氣的推動下，服務業實現低兩位數成長。營收成長 4%，停電次數增加以及優惠的價格推動了天然氣服務的成長。

EBITDA nearly doubled and grew over 60% organically with 340 basis points of margin expansion as higher-margin services volume, along with price and productivity more than offset the impact of inflation. We're off to a good start in Power. Our gas fleet utilization has been trending higher this year, up low-single-digits, benefiting from continued coal to gas switching and the increased demand for reliable and dispatchable power. We'll continue to evaluate strategies to meet a potential further acceleration in Gas Power demand as the outlook solidifies.

EBITDA 幾乎翻了一番，有機成長超過 60%，利潤率擴大了 340 個基點，因為利潤率較高的服務量、價格和生產力足以抵消通貨膨脹的影響。我們在 Power 方面有了一個好的開始。今年，我們的燃氣船隊利用率一直呈上升趨勢，增幅為低個位數，受益於持續的煤改氣以及對可靠和可調度電力的需求增加。隨著前景的鞏固，我們將繼續評估滿足天然氣發電需求可能進一步加速的策略。

Turning to Wind. We continue to make good progress on our turnaround, driving improved EBITDA even at lower revenue levels. Orders declined (40)%, largely attributable to lower Onshore orders. We remain focused on disciplined profitable growth in selected geographic areas such as North America, where our scale and strong manufacturing footprint provides advantages to our customers. Importantly, we see North American developers rebuilding their project pipeline as evidenced by the growing onshore interconnection queues.

轉向風。我們在扭虧為盈方面繼續取得良好進展，即使在收入水平較低的情況下也能提高 EBITDA。訂單下降 (40)%，主要歸因於陸上訂單減少。我們仍然專注於北美等選定地理區域的嚴格獲利成長，我們的規模和強大的製造足跡為我們的客戶提供了優勢。重要的是，我們看到北美開發商正在重建他們的專案管道，陸上互連隊列不斷增長就證明了這一點。

Revenue declined (7)% from lower Onshore equipment volume, partially offset by higher Offshore equipment deliveries as we continue to execute on our Offshore backlog. Wind services increased over 20%, driven by higher Onshore part sales in the U.S. EBITDA margins improved 400 basis points versus the prior year from continued cost reductions and positive price. Onshore EBITDA was positive for the third consecutive quarter, while Offshore - which still generated loss - improved sequentially. Wind results are demonstrating clear signs of progress. We're integrating Onshore and Offshore centered around 3 key workhorse products, which is resulting in improved quality, better availability, and incremental cost savings. Combined with higher second half Onshore volume projections based on our existing backlog, we anticipate improving profitability as we move through the year.

由於陸上設備數量減少，收入下降了 (7)%，但由於我們繼續執行海上積壓訂單，海上設備交付量增加部分抵消了收入。在美國陸上零件銷售成長的推動下，風電服務成長了 20% 以上。在岸 EBITDA 連續第三季為正，而仍產生虧損的離岸業務則較上季有所改善。風能結果顯示出明顯的進展跡象。我們正在圍繞 3 個關鍵主力產品整合陸上和海上業務，從而提高品質、提高可用性並逐步節省成本。結合我們基於現有積壓訂單的下半年陸上銷售預測，我們預計今年的獲利能力將會提高。

At Electrification, we had a very strong quarter of revenue growth and EBITDA margin expansion. Orders were strong at $3.6 billion, more than 2x first quarter revenue, although (10)% lower year-over-year given the large tenant HVDC orders recorded in the first quarter of 2023. Within Grid Solutions, the largest business in our Electrification segment, we saw increased demand for high-voltage switchgear equipment and transformers, both in the U.S. and in Europe. Revenue grew 21%, with strength in equipment led by growth in Grid Solutions across the business.

在電氣化領域，我們季度營收成長強勁，稅息折舊及攤銷前利潤 (EBITDA) 利潤率擴張。訂單強勁，達到36 億美元，是第一季營收的2 倍多，儘管考慮到2023 年第一季度記錄的大型租戶HVDC 訂單，同比下降(10)%。的業務，我們看到美國和歐洲對高壓開關設備和變壓器的需求不斷增加。收入成長了 21%，整個業務的網格解決方案的成長帶動了設備的實力。

Segment EBITDA margin expanded approximately 600 basis points driven by volume, productivity and price. Grid Solutions generated another quarter of positive EBITDA and continued improvement year-over-year. Strong demand is driving continued Electrification revenue growth. EBITDA margins are expanding as a result of the volume growth, along with favorable pricing and productivity. Equipment backlog in this segment is up $6 billion compared to the first quarter of 2023 with healthy margins.

在產量、生產力和價格的推動下，該部門 EBITDA 利潤率擴大了約 600 個基點。 Grid Solutions 又實現了一個季度的 EBITDA 正值，並且比去年同期持續改善。強勁的需求正在推動電氣化收入持續成長。由於銷售成長以及有利的定價和生產力，EBITDA 利潤率正在擴大。與 2023 年第一季相比，該領域的設備積壓增加了 60 億美元，利潤率良好。

Turning to slide 9. Based upon our solid start to the year, we're reaffirming our guidance provided at our Investor Day last month. For full year 2024, we continue to forecast revenue in the $34 billion to $35 billion range with adjusted EBITDA margin at the high end of mid-single-digits. We expect free cash flow in the range of $700 million to $1.1 billion. Following our outflow in the first quarter, this implies free cash flow of $1.4 billion to $1.8 billion over the balance of the year with continued improvement as we move through each of the 3 quarters ahead.

轉向幻燈片 9。對於 2024 年全年，我們繼續預測營收在 340 億至 350 億美元範圍內，調整後 EBITDA 利潤率將達到中個位數的高端。我們預計自由現金流在 7 億至 11 億美元之間。繼第一季流出之後，這意味著今年餘下的自由現金流將達到 14 億至 18 億美元，隨著我們在未來 3 個季度中的每個季度的發展，自由現金流將持續改善。

By segment, we continue to expect mid-single-digit organic revenue growth in Power, driven by higher Gas services and equipment, with approximately 100 basis points of EBITDA margin expansion. In Wind, we expect revenue to be essentially flat and to approach profitability from positive price, productivity and cost savings. As previously noted, we anticipate higher U.S. Onshore volume in the second half compared to the first and expect that to drive full year Onshore EBITDA margins to high-single-digits. In Electrification, we anticipate continuing strong demand and favorable price to drive low double-digit organic revenue growth with mid-single-digit margins due to the higher volume and price as well as productivity benefits.

按細分市場劃分，我們繼續預計，在天然氣服務和設備增加的推動下，電力業務的有機收入將實現中個位數成長，EBITDA 利潤率將擴大約 100 個基點。在 Wind 領域，我們預計收入將基本持平，並透過積極的價格、生產力和成本節約來實現盈利。如前所述，我們預計下半年美國在岸交易量將高於上半年，並預計這將推動全年在岸 EBITDA 利潤率達到高個位數。在電氣化領域，由於銷售和價格以及生產力的提高，我們預計持續強勁的需求和優惠的價格將推動兩位數的有機收入成長和中個位數的利潤率。

In addition, our 2024 adjusted EBITDA margin guidance anticipates $300 million to $350 million of Corporate and other costs, which includes approximately $200 million of incremental stand-alone costs.

此外，我們的 2024 年調整後 EBITDA 利潤率指導預計公司和其他成本為 3 億至 3.5 億美元，其中包括約 2 億美元的增量獨立成本。

Looking specifically at the second quarter, we expect modest year-over-year top-line growth and continued EBITDA margin expansion across the segments. Relative to last year's second quarter, Power should grow its top-line from higher equipment and services revenue. EBITDA margins should benefit from the volume and pricing growth as well as ongoing productivity. Wind revenue is expected to decline, but EBITDA should further improve as we see the positive impact from better pricing and reduced costs. Electrification should continue to deliver strong top-line growth, along with improved margins from favorable pricing, higher volume and resulting productivity. We expect continued free cash flow improvement year-over-year in the second quarter. Year-over-year favorability is anticipated to be better than what we delivered in the first quarter as we continue to execute on our working capital velocity improvement actions.

具體來看第二季度，我們預計各細分市場的營收將達到溫和的年成長，並且 EBITDA 利潤率將持續成長。與去年第二季相比，Power 的營收應該會因設備和服務收入的增加而成長。 EBITDA 利潤率應受益於銷售和價格的成長以及持續的生產力。風電收入預計將下降，但 EBITDA 應該會進一步改善，因為我們看到了更好的定價和降低成本的正面影響。電氣化應繼續帶來強勁的營收成長，並透過優惠的定價、更高的產量和由此產生的生產力提高利潤率。我們預計第二季自由現金流將繼續年比改善。隨著我們繼續執行營運資金速度改善行動，預計年比好感度將好於我們第一季的表現。

We're very encouraged with the solid financial performance to start the year. We see continued healthy demand for our products and services, and our execution is driving stronger EBITDA margins and increased free cash flow. We're also confident in the strength of our balance sheet. Upon launch on April 2nd, our cash balance was $4.2 billion, and we remain committed to maintaining our investment-grade rating. With that, let me turn it back to Scott.

我們對年初穩健的財務表現感到非常鼓舞。我們看到對我們的產品和服務的持續健康需求，我們的執行力正在推動更強勁的 EBITDA 利潤率和更多的自由現金流。我們對資產負債表的力量也充滿信心。自 4 月 2 日推出以來，我們的現金餘額為 42 億美元，我們仍然致力於維持我們的投資等級評級。說到這裡，讓我把話題轉回史考特身上。

Thanks, Ken. All in, we are pleased with our momentum to start the year. Market dynamics continue to drive strong demand that will lead to multi-decade growth across Power, Wind and Electrification segments. Whether it's helping our customers meet rising electricity demand to decarbonize their systems, or to modernize and expand the grid, we are uniquely positioned to support their needs. Our Power segment generates 70% of its revenues from services as we support our large installed base that drives strong, consistent and growing free cash flow.

謝謝，肯。總而言之，我們對今年伊始的勢頭感到滿意。市場動態繼續推動強勁的需求，這將導致電力、風能和電氣化領域數十年的成長。無論是幫助我們的客戶滿足不斷增長的電力需求以實現系統脫碳，還是實現電網現代化和擴展，我們都具有獨特的優勢來支持他們的需求。我們的電力部門 70% 的收入來自服務，因為我們支持龐大的安裝基礎，推動強勁、持續且不斷成長的自由現金流。

Wind is a key part of the energy transition, representing only 7% of the world's electricity today. By 2040, Wind will need to be closer to 25% in order for the world to achieve its decarbonization goals. We expect to continue expanding margins in Wind.

風能是能源轉型的關鍵部分，僅佔當今世界電力的 7%。到 2040 年，風電發電量需要接近 25%，才能讓世界實現脫碳目標。我們預計 Wind 業務的利潤率將持續擴大。

Our Electrification segment is our highest growth business and margins in backlog continue to rise. We are seeing customers significantly increase planned grid-related investments to improve reliability and connect more zero-carbon power sources. As discussed earlier, our Lean operating system, sustainability and innovation are the core of our company. We are committed to driving sustainability and to help customers advance their efforts to deliver on electrification and decarbonization.

我們的電氣化業務是我們成長最快的業務，積壓訂單的利潤率持續上升。我們看到客戶大幅增加了計劃中的電網相關投資，以提高可靠性並連接更多零碳電源。如前所述，我們的精益作業系統、永續發展和創新是我們公司的核心。我們致力於推動永續發展，並幫助客戶進一步努力實現電氣化和脫碳。

We are running our businesses better and benefiting from increasing demand as electricity markets evolve. We expect to deliver growing EBITDA and free cash flow for a long time. And when we put all this together, we see a clear opportunity to create substantial value for all stakeholders going forward. With that, I'll hand it back to Michael for the Q&A portion of the call.

隨著電力市場的發展，我們正在更好地經營我們的業務，並從不斷增長的需求中受益。我們預計將長期實現不斷增長的 EBITDA 和自由現金流。當我們把所有這些放在一起時，我們看到了一個明顯的機會，可以為所有利害關係人創造巨大的價值。這樣，我會將其交回給邁克爾，以進行電話問答部分。

Thank you, Scott. Before we open the line, I'd ask everyone in the queue to consider your fellow analysts and ask one question so we can get to as many people as possible. Please return to the queue if you have follow-ups. Operator, please open the line.

謝謝你，斯科特。在我們開始排隊之前，我會要求隊列中的每個人考慮您的分析師同事並提出一個問題，以便我們可以接觸到盡可能多的人。如果您有後續行動，請返回佇列。接線員，請開通線路。

(Operator Instructions) Our first question comes from the line of Mark Strouse with JPMorgan.

（操作員指示）我們的第一個問題來自摩根大通的 Mark Strouse。

Congrats on getting the spin across the finish line. So I guess my one question will be kind of starting on the equipment side, pretty noteworthy. You booked 8 HA turbines in the quarter, equal to all of 2023. My question is broader than just the HA turbines, but can you just kind of give a bit more color on the sales pipeline you have, when we should expect that to convert to orders? Is it rational to think about book-to-bill being greater than 1 for the year? And just kind of an update on when those orders might convert into revenue.

恭喜您以旋轉衝過終點線。所以我想我的一個問題將從設備方面開始，非常值得注意。您在本季度預訂了8 台HA 渦輪機，相當於2023 年的全年銷量。轉化來訂單？認為全年訂單出貨比大於 1 是否合理？只是更新這些訂單何時可能轉化為收入。

Thanks, Mark. I'll take that. I mean, for sure, in the Gas business, we are seeing increased demand for new capacity additions. In the first quarter, that was very focused on both North America and the Middle East, and it was growth in both HAs, but also Aeroderivative applications. As I mentioned earlier, it is forcing us to kind of revisit our capacity additions and think through how we can continue to support this growth and what's coming from here. And I do think it's very practical to think this year that our orders in Gas equipment could very well be larger than our revenue with a growing backlog. And then you really have to think about a conversion cycle of really 2 to 3 years from order to revenue with our Gas equipment book.

謝謝，馬克。我會接受的。我的意思是，可以肯定的是，在天然氣業務中，我們看到對新增產能的需求不斷增加。第一季度，主要集中在北美和中東，HA 和航改應用均成長。正如我之前提到的，這迫使我們重新審視我們的產能增加，並思考如何繼續支持這種成長以及未來的發展。我確實認為，隨著積壓訂單的不斷增加，今年我們的天然氣設備訂單很可能會超過我們的收入，這是一個非常實際的想法。然後，您確實必須考慮我們的天然氣設備手冊從訂單到收入的實際 2 到 3 年的轉換週期。

But exciting start to the year, good sentiments and acknowledgment that gas is going to play a critical role here this decade. But I also think an acknowledgment from a number of our customers that they're getting more confidence and conviction in our ability to decarbonize gas in future decades with hydrogen and carbon capture. So good start. A lot more to do.

但今年的開局令人興奮，人們的情緒良好，人們認識到天然氣將在本十年中發揮關鍵作用。但我也認為我們的許多客戶承認他們對我們在未來幾十年透過氫和碳捕獲來脫碳的能力越來越有信心和信念。這麼好的開始。還有很多事情要做。

Our next question comes from the line of Joe Ritchie with Goldman Sachs.

我們的下一個問題來自高盛的喬·里奇。

Congrats on getting out as a public company. So my one question, just maybe staying on Power for a second. It is pretty notable to see the service orders also up double-digits. I'm curious how much of that is being driven by just adding new orders on the equipment side and getting those orders on contract versus what you're seeing on the spot market? And really, the basis of my question is really just trying to understand whether we're in a period of time now where you have not been adding a ton of generation capacity. And could we be in a period of time where services sees a really healthy level of growth going forward?

恭喜您成為上市公司。所以我的一個問題是，也許在 Power 上停留一秒鐘。值得注意的是，服務訂單也成長了兩位數。我很好奇，與您在現貨市場上看到的情況相比，其中有多少是透過在設備方面添加新訂單並根據合約獲得這些訂單來推動的？事實上，我的問題的基礎只是想了解我們現在是否處於沒有增加大量發電能力的時期。我們是否會處於服務業未來真正健康成長的時期？

You bet, Joe. I mean, at the start, I would just emphasize that double-digit orders growth really isn't connected to new capacity additions or orders there. That's really the existing installed base and is evidence of our customers investing in that installed base. I mean, as Ken framed up, utilization of the fleet is growing. You're seeing a customer base that clearly sees the integral role that gas is going to play and is investing into that fleet with different operating parameters. And as we look through this year and what we see in Gas services, we do continue to see Gas services strength throughout 2024.

你敢打賭，喬。我的意思是，在一開始，我只是強調兩位數的訂單成長實際上與新產能的增加或那裡的訂單無關。這確實是現有的安裝基礎，也是我們的客戶對此安裝基礎進行投資的證據。我的意思是，正如肯所說，機隊的利用率正在增長。您看到的客戶群清楚地看到天然氣將發揮的不可或缺的作用，並且正在投資於具有不同操作參數的車隊。當我們回顧今年以及我們在天然氣服務中看到的情況時，我們確實會在 2024 年繼續看到天然氣服務的實力。

Our next question comes from the line of Moses Sutton with BNP Paribas.

我們的下一個問題來自摩西·薩頓 (Moses Sutton) 與法國巴黎銀行 (BNP Paribas) 的對話。

I guess continuing on the Gas theme here. 4.9 gigawatts is -- I know it could be lumpy, but it's 40% higher than the average quarter last year. How -- what's the maximum you could see this annualized in the short to medium term? And can you talk a little bit more about geography, Middle East versus U.S. versus other. Any thoughts there on new equipment orders in detail?

我想這裡繼續討論天然氣主題。 4.9 吉瓦——我知道它可能不穩定，但比去年季度的平均值高出 40%。在中短期內，您能看到的年化最大值是多少？能多談談地理、中東與美國與其他國家的情況嗎？關於新設備訂單的詳細情況有什麼想法嗎？

Yes. Moses, I would just emphasize again, the first quarter orders were very centric in the Middle East and in North America. We had previously gone through a cycle with real growth in Asia. We still see a lot of pipeline there, but the first quarter was more centered on those regions. But when we look at our pipeline, there's healthy global demand for new gas additions. The U.S. has a healthy pipeline. We're revisiting really how we serve that market because simultaneously we're seeing services demand growth and new gas capacity demand growth. And with it, it's having us work with our supply chain partners to look at over the medium term, how we can serve that demand. So we're working our way through that, and I'll come back with further updates in that regard as we work through the year.

是的。摩西，我想再次強調，第一季的訂單非常集中在中東和北美。我們之前經歷過亞洲真正成長的周期。我們仍然看到那裡有很多管道，但第一季更多地集中在這些地區。但當我們審視我們的管道時，就會發現全球對新增天然氣的需求強勁。美國擁有健康的管道。我們正在重新審視我們如何服務該市場，因為我們同時看到服務需求成長和新天然氣產能需求成長。隨之而來的是，我們與供應鏈合作夥伴合作，研究如何在中期內滿足這項需求。因此，我們正在努力解決這個問題，當我們全年工作時，我將在這方面提供進一步的更新。

Our next question will come from the line of Andrew Obin with Bank of America.

我們的下一個問題將來自美國銀行的安德魯·奧賓 (Andrew Obin)。

This is David Ridley-Lane on for Andrew. Can you talk about the composition of Electrification orders this quarter, 2.2x book-to-bill is very impressive. Kind of what are the products and conversion timelines on those orders this quarter?

我是安德魯的大衛雷德利-萊恩。您能否談談本季電氣化訂單的組成，2.2 倍的訂單出貨比非常可觀。本季這些訂單的產品和轉換時間表是怎樣的？

Yes. Thank you, David. The composition of the orders, we saw good backlog growth in the Grid businesses and across components of the Grid business. So power transformers, Grid services, saw that happen there. The composition is in the areas where in that space we tend to see longer delivery cycles. So one of the things that we talked about last year was that we saw about 500 basis points of expansion in our Grid backlog, our equipment backlog for the Electrification business, a lot of that being in Grid.

是的。謝謝你，大衛。從訂單組成來看，我們看到電網業務和電網業務各個組成部分的積壓訂單都有良好成長。因此，電力變壓器、電網服務都見證了這種情況的發生。其組成是在該領域中我們往往會看到更長的交付週期。因此，我們去年談到的一件事是，我們看到我們的電網積壓、電氣化業務的設備積壓增長了約 500 個基點，其中許多都在電網中。

The good news with that is because they are longer cycle deliveries, what we feel really good about is the margin expansion that we're seeing in that business and the fact that Electrification is anticipated to get to mid-single digits EBITDA margins in 2024, and we talked about that continuing to expand into 2025. But the strong order backlog, orders in backlog that's coming into Electrification will be something that supports margin expansion on those higher margins in backlog as we move out past the 2025 time frame. So really good opportunities within the electrification space, good orders across the business and a good timeline in front of it for the business to benefit from stronger margins.

好消息是，因為它們的交付週期更長，我們真正感到滿意的是我們在該業務中看到的利潤率擴張，以及電氣化預計在 2024 年達到中個位數 EBITDA 利潤率這一事實，我們談到了這種情況將繼續擴大到2025 年。因此，電氣化領域確實有很好的機會，整個企業都有良好的訂單，而且企業可以從更高的利潤率中受益，也有一個良好的時間表。

Our next question comes from the line of Chris Dendrinos with RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場部門的 Chris Dendrinos。

Yes. I guess just really, really strong momentum coming into the year. I'm curious, how does that kind of compare against your internal expectations? And then should we interpret this as perhaps you're outperforming what your expectations were coming in? And does that mean continued strength into the back half of the year?

是的。我想今年的勢頭真的非常強勁。我很好奇，這與你的內心期望相比如何？那麼我們是否應該將此解釋為您的表現可能超出了您的預期？這是否意味著今年下半年將繼續走強？

Yes. It's a really good question, and thank you for it. As you think about the year, we're always going to be a little bit more seasonally focused towards the second half of the year versus the first. So when I give you this answer, the reality is, are we doing well against our expectations? Yes, in a very good out of the start performance for the first quarter. Keep in mind, that's our relatively smallest quarter of the year, but the strength of what we're seeing in the orders and the execution, whether it be pricing, productivity, cost reductions, very, very good.

是的。這是一個非常好的問題，謝謝你的提問。當你思考這一年時，我們總是會比上半年更關注下半年的季節性。所以當我給你這個答案時，現實是，我們的表現是否超出了我們的預期？是的，第一季的開局表現非常好。請記住，這是我們一年中相對最小的季度，但我們在訂單和執行方面看到的實力，無論是定價、生產力、成本降低，都非常非常好。

I would tell you that, that gives us confidence that we can reaffirm to you the statements we've made about the year. But it doesn't mean we're going to change anything at this point in time, but the momentum out of the gates really gives us incremental confidence that we are on a path to deliver exactly what we told you for the year.

我想告訴你們，這讓我們有信心向你們重申我們今年所做的聲明。但這並不意味著我們會在這個時候改變任何事情，但走出大門的勢頭確實讓我們越來越有信心，我們正在一條道路上準確地實現我們今年告訴你們的目標。

Our next question comes from the line of James West with Evercore ISI.

我們的下一個問題來自 James West 和 Evercore ISI 的路線。

Congrats again on the first quarter out of the box. Scott, curious, I want to go back to Electrification. That's where I think you're most bullish, we're most bullish definitely on that. We're now getting inbounds from not just the normal players, electrification, but tech company executives, tech company investors trying to lever into the themes of AI and data center growth and I'm curious what you're seeing in the end markets and how your conversations are evolving because it seems like we're broadly, the market is coming to this idea or this realization that power demand is going to run well ahead of deployment, electricity deployment.

再次恭喜第一季的開箱即用。史考特，很好奇，我想回到電氣化。我認為這就是你們最看好的地方，我們也絕對最看好這一點。我們現在不僅受到普通參與者、電氣化的歡迎，也受到科技公司高層、科技公司投資者的歡迎，他們試圖利用人工智慧和資料中心成長的主題，我很好奇你在終端市場和資料中心看到了你們的談話是如何演變的，因為似乎我們廣泛地認為，市場正在認識到這個想法或認識到電力需求將遠遠領先於部署、電力部署。

James, I agree. I think the demand is real, and the uptick is very clear with the different counterparties that we're working with, both our traditional customers and iterating with our -- maybe their end customers to understand what the art of the possible is, whether it be the technology companies, the hyperscalers. And the conversations are very focused on a lot of what we've been talking about inside GE Vernova for the last few years, which is it's going to be an all of the above technology portfolio needed to serve this growing market. Gas is going to play a critical role. It's a power-dense solution that supports the operating parameters of a lot of things like data center needs.

詹姆斯，我同意。我認為需求是真實的，而且與我們合作的不同對手方（包括我們的傳統客戶）以及與我們（也許是他們的最終客戶）進行迭代以了解可能性的藝術是什麼的需求的上升非常明顯，無論是成為科技公司、超大規模企業。這些對話非常集中在過去幾年我們在 GE Vernova 內部討論的許多內容，即服務這個不斷增長的市場所需的所有上述技術組合。天然氣將發揮關鍵作用。它是一種功率密集型解決方案，支援許多資料中心需求的操作參數。

But at the same time, we're doing a lot of work right now on how wind growth can fulfill that demand and solar is going to play an important role. We're having conversations on into next decade, how small modular reactors is going to play a role. And regardless of the power generation source, electrification equipment is critical. And whether that be the transformers or the electrical equipment inside the data centers, it gives us real opportunity to grow our business from here. So it's tough to call exactly when these conversations translate to orders. And that may not be tomorrow, but the demand is certainly real in the medium term, and we're really encouraged about our opportunity to serve that market.

但同時，我們現在正在做大量工作，研究風能成長如何滿足這項需求，而太陽能將發揮重要作用。我們正在討論下一個十年小型模組化反應器將如何發揮作用。而且無論發電來源為何，電氣化設備都至關重要。無論是資料中心內的變壓器還是電氣設備，它都為我們提供了真正的機會來發展我們的業務。因此，很難準確判斷這些對話何時會轉化為訂單。這可能不是明天，但從中期來看，需求肯定是真實的，我們對服務該市場的機會感到非常鼓舞。

Our next question will come from the line of Maheep Mandloi with Mizuho.

我們的下一個問題將來自 Maheep Mandloi 和 Mizuho 的團隊。

Congratulations on the first quarter here. Just 2 small ones for me. So first on Electrification theme. Could you talk about where the geographic mix of the orders we're getting from? And separately, on Offshore Wind, if you could talk to the NYSERDA RFP for the manufacturing logistics. Any thoughts on if you'll be participating on that?

在這裡恭喜第一季。對我來說只有 2 個小的。首先是電氣化主題。您能談談我們收到的訂單的地理分佈嗎？另外，在離岸風電方面，您是否可以與 NYSERDA RFP 討論製造物流事宜。對於您是否會參與其中有什麼想法嗎？

Sure. I'll start with the Electrification question. On the mix of the orders, our business in general is more heavily weighted to Europe. We do have North America presence for sure. And I would say the orders are coming probably more primarily across the European base, but we are seeing good interest and good demand in North America. We continue to focus that business on not only being heavily European based, but we see a great market as outlined by Scott in some of his comments previously, to be really good as the U.S. is starting to focus more heavily on its grid optimization strategies. So while we've seen a mix today that's probably a little bit more heavily focused to Europe, we see great opportunity for that business to expand the really good things that they're doing in Europe into North America. Maybe I'll give the Offshore Wind question and let Scott answer that one.

當然。我將從電氣化問題開始。從訂單結構來看，我們的業務整體上更側重於歐洲。我們確實在北美有業務。我想說，訂單可能主要來自歐洲基地，但我們看到北美有良好的興趣和良好的需求。我們繼續將業務重點放在不僅以歐洲為基礎的業務上，而且我們看到了斯科特在之前的一些評論中概述的巨大市場，隨著美國開始更加關注其電網優化策略，該市場非常好。因此，雖然我們今天看到的混合可能更側重於歐洲，但我們看到該企業有很大的機會將他們在歐洲所做的真正好的事情擴展到北美。也許我會提出離岸風電問題，然後讓史考特回答這個問題。

Thanks, Ken. Maheep, on Offshore Wind, I first just reinforce that we view Offshore Wind as an important part of the energy transition here. And we've been very appreciative of our iteration in partnership with New York State and NYSERDA on the New York 3 auction. With the phase that offshore wind has been in generally over the last few years, it's been hard to get projects to a point that they're ready to thrive. But through our iteration with our customers and where we're going, I want to tell you, we're excited about our future product here, a 15.5-megawatt product that has an ability to have a power boost up to 16.5-megawatts.

謝謝，肯。 Maheep，關於離岸風電，我首先強調我們將離岸風電視為能源轉型的重要組成部分。我們非常感謝我們與紐約州和 NYSERDA 合作在 New York 3 拍賣中進行的迭代。從過去幾年離岸風電總體所處的階段來看，很難讓專案達到蓬勃發展的地步。但透過我們與客戶的迭代以及我們的發展方向，我想告訴您，我們對我們未來的產品感到興奮，這是一款 15.5 兆瓦的產品，能夠將功率提升至 16.5 兆瓦。

We're working hard to have that prototype running by the end of 2025. And when we look at where we are with our Haliade-X product today, the 14-megawatt product, by the time you get into 2026, we're going to have somewhere in the neighborhood of 5 million to 6 million operating hours with that product. So there's a lot to work on today. We believe that offshore wind is going to play an important role in the energy transition, appreciative for the iteration of the partnership with New York State and the many other states and geographies we're working on to build the industry.

我們正在努力讓原型機在 2025 年底之前運行。 。所以今天有很多工作要做。我們相信，離岸風電將在能源轉型中發揮重要作用，感謝我們與紐約州以及我們正在努力建立該行業的許多其他州和地區的合作夥伴關係。

But at the same time, we've been pretty consistent for a while that we are only going to add to that backlog with materially different economic terms than what is in our backlog today. And that's a combination of many things: price, other terms and really leaning in on projects that are set to thrive. And there's a lot of complexity in offshore wind that we're all learning from, and we're going to keep working on it every day because we do believe it's going to play a role in the energy transition, but we're only going to add to the backlog when it's meaningfully different than what we're executing on today.

但同時，一段時間以來，我們一直非常一致地認為，我們只會用與今天的積壓訂單中實質上不同的經濟術語來增加積壓的訂單。這是許多因素的結合：價格、其他條款以及真正依賴那些即將蓬勃發展的項目。離岸風電有很多複雜性，我們都在從中學習，我們將每天繼續努力，因為我們確實相信它將在能源轉型中發揮作用，但我們只是當積壓工作與我們今天執行的工作明顯不同時，將其加入積壓工作。

Our next question will come from the line of Rob Wertheimer with Melius Research.

我們的下一個問題將來自 Melius Research 的 Rob Wertheimer。

I guess I'd like to start with Power. And I know you've given comments on geographic strength and so forth. But could you talk about U.S. utility demand? And just, I think we've all woken up to kind of the shift in the world that AI is pulling forward on electricity demand. What's the reaction of utilities to that? Are they 2 years ahead of this? Do you have a lot in pipeline? Or is that something that's shifting kind of in real time now? And then if you would, could you remind us or discuss briefly the economics on Aeroderivatives on both new builds or the actual new order and service?

我想我想從 Power 開始。我知道您已經就地理優勢等問題發表了評論。但您能談談美國的公用事業需求嗎？只是，我認為我們都已經意識到人工智慧正在推動電力需求的改變。公用事業公司對此有何反應？他們比這提早2年嗎？你有很多管道嗎？或者說現在正在即時變化？如果您願意的話，您能否提醒我們或簡要討論一下新建造或實際新訂單和服務的航空衍生品的經濟學？

You bet, Rob. I appreciate the question. I would say that our utility customers have been working towards a demand build here over the last few years. But admittedly, the load growth projections for many of our customers have become a steeper demand curve sooner in the last, let's say, 6 to 12 months. And that is accelerating discussions on our end on things like framework agreements to secure capacity for them with future Heavy-Duty equipment while they firm up project sites for development that make most sense for them.

你敢打賭，羅布。我很欣賞這個問題。我想說的是，我們的公用事業客戶在過去幾年中一直在努力滿足這裡的需求。但不可否認的是，我們許多客戶的負載成長預測在過去（例如 6 到 12 個月）中很快就變成了更陡峭的需求曲線。這正在加速我們對框架協議等問題的討論，以確保他們擁有未來重型設備的能力，同時他們也確定了對他們來說最有意義的開發項目地點。

So there clearly is a macro theme in the U.S. specifically with our U.S. utility customers that many of them are going to have incremental gas capacity additions. But like any power project, it's not a straight line to kind of get things to close through permitting and otherwise, and customers are working very hard on that. So we are bullish on the capacity addition, optionality or opportunity ahead for us with our utility customers and are going to work it very hard.

因此，美國顯然存在一個宏觀主題，特別是我們的美國公用事業客戶，其中許多客戶將增加天然氣產能。但與任何電力項目一樣，透過許可等方式完成專案並不是一條直線，客戶正在為此付出很大的努力。因此，我們看好我們與公用事業客戶未來的容量增加、可選性或機會，並將非常努力地工作。

On the second part of your question with Aeroderivatives, this is one of the more exciting growth parts of Gas Power. The reality is the Aeroderivative product line is so well suited to be the complement to 200 to 300 megawatt blocks of wind or solar that just need fast ramping technical solutions to support that zero-carbon power. So in many ways, when we talk about Gas Power being a forced multiplier that enables other zero-carbon power sources to grow faster, Aeroderivatives is the perfect illustration of that.

關於 Aeroderivatives 問題的第二部分，這是燃氣動力更令人興奮的成長部分之一。現實情況是，Aeroderivative 產品線非常適合補充 200 至 300 兆瓦的風能或太陽能，只需要快速提升的技術解決方案來支援零碳電力。因此，從許多方面來說，當我們談論天然氣發電是一種強制倍增器，使其他零碳能源能夠更快成長時，航空衍生性商品就是一個完美的例證。

Now the general economics for us with Aeroderivatives are the equipment margins are more healthy than they are on a Heavy-Duty Gas Turbine project because admittedly, the services annuity stream and the operating profile of those Aeroderivative units may not be as high or as consistent that we can count on because they're really there more as a support to those wind or solar farms that get developed. So when we underwrite gas projects on a Heavy-Duty project where it's something like a coal to gas switching, a larger proportion of the economics are on the services. With Aeroderivatives, a larger proportion of the economics for us are with the day 1 equipment revenue.

現在，對於我們航改項目而言，總體經濟學是設備利潤率比重型燃氣渦輪機項目更為健康，因為無可否認，這些航改項目的服務年金流和運營狀況可能沒有那麼高或一致。信賴，因為它們確實更多地為那些開發的風能或太陽能發電場提供支援。因此，當我們承保重型專案的天然氣專案（類似煤改氣）時，更大比例的經濟效益來自於服務。對於 Aeroderivatives，我們的大部分經濟效益來自於第一天的設備收入。

Liz, I think we have time for one more question.

莉茲，我想我們還有時間再問一個問題。

This question will come from the line of Pavel Molchanov with Raymond James.

這個問題將來自帕維爾·莫爾恰諾夫（Pavel Molchanov）和雷蒙德·詹姆斯（Raymond James）。

You mentioned that Onshore Wind already achieved positive EBITDA in the quarter. Given the seasonality of the overall Wind segment, do you anticipate getting to positive EBITDA for the segment as a whole at any point before the end of the year on a quarterly basis?

您提到陸域風電本季已實現正 EBITDA。考慮到整個風能部門的季節性，您是否預計該部門在年底前的每個季度都能實現正 EBITDA？

So what we said in our guidance is that we anticipate that with the continued improvement in Wind as well as the delivery of our Offshore Wind backlog, but -- which is generating losses but improving as we deliver that backlog is that we would approach profitability for 2024. Now that does have a lot of really good fundamentals built within that, which is, number one, we talked about the fact that revenue for Onshore Wind in the first half would be challenged in the sense of developers, our customers are working to rebuild their pipelines and that we would see the orders start to come in as we move through the year. But what we do feel on the second half of the year is based upon the backlog that we have on hand in the Onshore Wind business, we expect to see revenues in Onshore Wind be measurably higher in the second half than we're seeing in the first half of the year. That will contribute to improved productivity because as we said, we're anticipating Onshore Wind to be more at a high-single-digit EBITDA margin business for 2024 in totality. I give you that background because the good performance in all of our businesses as well as Wind out of the gate has us on track to approach profitability for 2024. If we reach that at a sooner point, we'll know that as we move through some of the bigger quarters of the year. But our guidance is that we will get close to profitability this year for the segment in totality.

因此，我們在指導中所說的是，我們預計，隨著風電的持續改善以及我們海上風電積壓訂單的交付，但是，這正在產生損失，但隨著我們交付積壓訂單而有所改善，我們將接近盈利能力2024 年。客戶正在努力重建他們的管道，隨著時間的推移，我們會看到訂單開始進來。但我們對下半年的感受是基於我們手頭上的陸上風電業務的積壓，我們預計下半年陸上風電的收入將明顯高於我們在今年下半年看到的收入。這將有助於提高生產力，因為正如我們所說，我們預計陸上風電業務到 2024 年整體 EBITDA 利潤率將達到高個位數。我向您介紹這一背景是因為我們所有業務以及 Wind 的良好表現使我們有望在 2024 年實現盈利。大的季度。但我們的指導是，今年該部門的整體獲利將接近獲利。

Before we wrap up, let me turn it back to Scott for closing comments.

在我們結束之前，讓我把它轉回斯科特以徵求結束意見。

Thanks, Michael. Everyone, in short, I hope you can hear the excitement in our voices on the opportunity we have in front of us to serve this market. I also want to thank our employees. The process of separating from a 130-year-old plus company while continuing to focus on serving our customers in the operations is not always an easy balance. And I think in the first 90 days of the year, our teams did an excellent job with that.

謝謝，麥可。簡而言之，我希望大家能夠聽到我們對我們面前的服務這個市場的機會感到興奮的聲音。我還要感謝我們的員工。從一家擁有 130 多年歷史的公司分離出來，同時繼續專注於在營運中為客戶提供服務，這個過程並不總是一個輕鬆的平衡。我認為在今年的前 90 天，我們的團隊在這方面做得非常出色。

I also want to thank our customers for their continued trust in us and the continued iteration that we're having right now on these growth markets that we're facing into. For everyone on the call today, thank you for your interest in GE Vernova. We're just getting started, but I really like our chances from here. So thanks for the time and with that, I think we'll wrap the call.

我還要感謝我們的客戶對我們的持續信任，以及我們目前在我們面臨的這些成長市場上的持續迭代。今天參加電話會議的各位，感謝您對 GE Vernova 的興趣。我們才剛開始，但我真的很喜歡我們從這裡開始的機會。感謝您抽出時間，我想我們就結束通話了。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

謝謝你們，女士們、先生們。今天的會議到此結束。感謝您的參與。您現在可以斷開連線。