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 one equipment revenue.
Kenneth Parks: Liz, I think we have time for one more question.
Operator: This question will come from the line of Pavel Molchanov with Raymond James.
Pavel Molchanov: Thanks for taking the question. 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 this segment as a whole at any point before the end of the year on a quarterly basis?
Kenneth Parks: 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 our 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 improve productivity. because as we said, we’re anticipating onshore wind to be more at a high single-digit’s 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.
Michael Lapides: Before we wrap up, let me turn it back to Scott for closing comments.
Scott Strazik: Thanks, Michael. Everyone, in short, I hope you can hear the excitement in our voices and 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 and 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. 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.
Operator: Thank you, ladies and gentlemen. This concludes today’s conference. Thank you for participating. You may now disconnect.
