GE Releases 1Q’23 Results

Welcome to our first quarter as a new GE … simpler and more focused. We are now GE Aerospace and GE Vernova, two industry leaders in their own right.

We’re creating significant value today, underscored by strong first quarter results: 17% organic revenue growth with all segments up, more than doubling our adjusted profit with margin expansion in all segments, resulting in 27 cents of adjusted EPS, and positive free cash flow. This performance reflects robust market demand for our innovative technologies and services , and we’re operating leaner and more focused businesses. To put a finer point on it, services are one of GE’s best assets. They account for more than 60% of total revenues, are higher margin and more resilient, and, most importantly, keep us close to our customers.

Since our Investor Conference in March, GE Aerospace has continued to see tremendous commercial momentum, delivering double-digit growth on the top and bottom line. And our execution at GE Vernova is tracking well with continued signs of progress in Renewable Energy and as Power continues to deliver.

GE Aerospace reached an agreement with Air India for the largest LEAP order to date with 800 engines, as well as 40 GEnx and 20 GE9X engines and related services agreements.

Now with GE HealthCare on its own , we’re focused on launching these two businesses as independent, investment-grade companies. Further, we also continued to simplify the balance sheet, partially monetizing our AerCap stake, closing out Baker Hughes, and calling half of the preferreds. ?

We named two new exceptional Board members , retired General Darren McDew and Jessica Uhl, who have deep domain expertise in aerospace and energy, respectively. We completed consultation with our European Works Council, which allows us to build the teams with both internal and external leaders for these standalone companies.?

We’re also advancing the rewiring to separate these two businesses. This includes working through our legal entities, tax, organizational and capital structures and standing up Boards for both. Rest assured job number one remains our operating performance, which we’ll dive into momentarily.?

So, thank you to our outstanding teams – our Separation Management Office that is leading these efforts, as well as the vast majority of our global employee base that’s focused on serving customers. These businesses are ready to deliver and realize our full potential as independent industry-leaders.?

The GE team is off to an encouraging start in 2023 and our progress continues. Our missions at both GE Aerospace and GE Vernova matter to the world, and we are crystal clear on how we plan to deliver on them.?

GE Aerospace has a bold vision to define the future of flight. With nearly 3 billion people flying with our technology under wing last year, this exceptional franchise is growing amidst the pronounced industry ramp.?

At GE Vernova, as the world looks to accelerate efforts to decarbonize and electrify, we’re uniquely positioned with our technology providing 30% of the world’s electricity. Our Renewables business is showing continued signs of progress, with more to do, while Power continues to deliver solid growth.?

GE Vernova reached agreements with TenneT to award GE-led consortiums with multi-billion Euro contracts for Grid Solutions' High-Voltage Direct Current offering to support its 2GW programs in the Netherlands and Germany.

Simply put, we’re improving how we operate, how we innovate, and how we deliver for our customers. I couldn’t be more excited about the future?and where we’re going.