GE

GE Vernova Inc. stock research

Jun 30, 2024

FY2024 Q2

GE Vernova (GEV) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased while gross profit grew more sharply, resulting in an improved gross margin. Cost of revenue rose at a slower rate than revenue versus the prior quarter and declined compared to the same quarter last year.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue increased while gross profit grew more sharply, resulting in an improved gross margin. Cost of revenue rose at a slower rate than revenue versus the prior quarter and declined compared to the same quarter last year.

  • The primary driver of margin improvement was the favorable relationship between revenue and cost of revenue, with cost of revenue increasing less than revenue sequentially and decreasing year-over-year.
  • Compared to the prior quarter, revenue and gross profit were higher and gross margin improved. Compared to the same quarter one year earlier, revenue was slightly higher, gross profit was significantly higher, cost of revenue was lower, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

20.7%

Gross profit

$1.7B

Revenue

$8.2B

Cost of revenue

$6.5B

Quarter-over-quarter change

+4.9 pts

Year-over-year change

+6.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$8.3B$1.1B$7.2B12.7%
Dec 31, 2023$10.0B$1.7B$8.3B16.9%
Mar 31, 2024$7.3B$1.1B$6.1B15.8%
Jun 30, 2024$8.2B$1.7B$6.5B20.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+4.9 pts

Year-over-year change

Jun 30, 2023

+6.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary driver of margin improvement was the favorable relationship between revenue and cost of revenue, with cost of revenue increasing less than revenue sequentially and decreasing year-over-year.

Compared to the prior quarter, revenue and gross profit were higher and gross margin improved. Compared to the same quarter one year earlier, revenue was slightly higher, gross profit was significantly higher, cost of revenue was lower, and gross margin improved.

Monitor the arbitration refund and the Vineyard Wind offshore wind farm referenced in the filing, as they may affect future cost or revenue trends.