5 Things You Need to Know About General Electric's Big Spinoff
The General Electric (NYSE: GE) name is set to disappear. The forthcoming spinoff of GE Vernova (trading under the ticker GEV) in early April will result in the remaining company trading as GE Aerospace. The change will create two dramatically different companies, with GE Vernova arguably being the most interesting, albeit the weaker. Here's what GE shareholders need to know about the company, which will receive stock soon.
The following chart shows GE Vernova's revenue breakout in power, wind, and electrification segments. It's color-coded to separate each segment and then broken into each constituent business. The chart shows the particular importance of gas power (gas turbines and services), onshore wind (wind turbines), and grid solutions (including high voltage direct current, or HVDC, solutions to connect offshore wind farms).
The businesses are complementary because gas is a transition fuel source as the world moves toward renewable energy (wind power and solar) and will act as a support given the intermittent nature of renewable energy. Meanwhile, a large part of the growth in demand for grid solutions is coming from offshore wind farms and the need to connect renewable energy to the grid.
Source Fool.com
