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(Reuters) -GE Vernova said on Tuesday it had resumed installing turbines at two offshore wind farms that experienced equipment failures this year, but the company’s chief executive said he was cautious about the outlook for the struggling sector.
In a presentation to investors in New York, GE Vernova CEO Scott Strazik said the company is not yet accepting new orders for offshore wind turbines and forecast further losses in its wind segment in 2025.
“We’re not going to chase bad deals,” he said on stage, adding that the electrical equipment maker expected little to no growth in onshore wind over the next three years.
GE Vernova’s wind division has lost hundreds of millions of dollars this year due to delays in major offshore projects in the United States and the United States. Kingdom (TADAWUL:) due to accidents involving their turbines.
Complete construction of the Vineyard Wind project off the coast of Massachusetts had been on hold for months following a high-profile blade failure. A company investigation found that workers at a turbine blade factory in Quebec took shortcuts in quality control.
The broader offshore segment has also struggled with cost inflation and supply chain challenges, and Strazik said the company was seeing increased customer interest in its nuclear and power grid software offerings.
GE Vernova became an independent company this year following a three-way split of general electricity (NYSE:). Strazik said the company has focused on reducing costs and improving profitability.
The company expects revenue to decline by mid-single digits in 2025, compared with a forecast that revenue will remain flat this year, it said in a statement ahead of a meeting with investors in New York.
Weakness in the wind segment has been offset by strong demand for GE Vernova’s gas turbines and power grid equipment to meet growing data center power needs.
“I can’t think of a time when the gas business has been more fun than now,” Strazik said.
The company expects to have 20 gigawatts of gas equipment orders this year, compared to 11 GW last year, he said. Until 2027, the company will produce 80 gas turbines per year, up from 55 currently.
The company forecast higher revenue next year of between $36 billion and $37 billion, up from an expected top end of $34 billion to $35 billion in 2024.
It also sees free cash flow rising to between $2.0 billion and $2.5 billion in 2025, up from the high end of $1.3 billion to $1.7 billion this year.
The company also authorized a $6 billion share buyback and a new quarterly dividend of 25 cents per share.
