BOSTON — GE announced results today for the third quarter ending September 30, 2023.
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, “GE delivered another quarter of very strong results with double-digit growth in revenue, profit, and cash. At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in Commercial Engines and Services. At GE Vernova, our Grid and now Onshore Wind businesses were both profitable this quarter and we expect their performance to continue to improve. With our two largest Renewable Energy businesses delivering and Power’s continued strength, we remain highly confident in GE Vernova’s spin-off next year.”
Culp concluded, “Based on our year-to-date results and continued momentum in the fourth quarter, GE is raising full-year 2023 guidance. We’re well-positioned to launch GE Aerospace and GE Vernova as independent companies in the beginning of the second quarter. I’m more excited than ever about our path ahead.”
GE Aerospace and GE Vernova continued to take recent action on their priorities:
GE Aerospace
- Delivered double-digit growth in orders, revenue, and operating profit driven by commercial momentum and strength in services. Orders grew 34% and revenue was up 25%, led by Commercial Engines and Services with Defense revenue up 8%, led by services and Edison Works.
- Announced the U.S Army’s acceptance of the first two GE Aerospace T901 flight test engines that will power the Future Attack Reconnaissance Aircraft prototypes. The T901 will also upgrade the U.S. Army’s Apache and Black Hawk helicopters, providing 50% more power, reduced lifecycle costs, and lower fuel consumption.
- Named executive leadership team members, including Tara DiJulio as Chief Corporate Affairs Officer, Christian Meisner as Chief Human Resources Officer, Jake Phillips as General Counsel, and Rob Giglietti as Treasurer.
GE Vernova
- Drove strong revenue and operating profit growth in Renewable Energy and Power. Renewable Energy revenue grew 14% organically* with double-digit equipment growth in Grid, North America Onshore Wind, and Offshore Wind. Power also grew with revenue up 9% organically*.
- Accumulated more than two million commercial operating hours for the advanced H-Class, heavy-duty gas turbine fleet, supporting HA services billings growing to $1 billion by mid-2020s; this fleet now has an installed capacity of over 47 gigawatts globally, the equivalent of powering over 35 million U.S. homes.
- Named Ken Parks as CFO, and Vic Abate to an expanded role as CEO of GE Vernova’s Wind businesses.
In addition, GE:
- Announced today that it expects to spin off GE Vernova and launch GE Aerospace in the beginning of the second quarter of 2024, subject to final approval from the GE Board of Directors and other customary conditions. Shares of GE Vernova will be listed on the New York Stock Exchange under the ticker symbol “GEV” and shares of GE Aerospace will continue GE’s listing on the New York Stock Exchange under the ticker symbol “GE”.2
- Received total proceeds of approximately $2.7 billion in the quarter from the sale of a portion of its AerCap shares. GE continues to expect to fully monetize its remaining stakes in AerCap and GE HealthCare, of approximately 14.5% and 13.5% respectively, in an orderly manner over time.
- Redeemed remaining outstanding shares of GE preferred stock in the quarter, for $2.8 billion, further simplifying GE’s balance sheet and reducing financing costs.
- Repurchased approximately 2.2 million common shares for $0.3 billion in the quarter, with $1.2 billion remaining under the GE Board’s prior authorization of common share repurchases of up to $3.0 billion.
- Incurred separation costs of $0.2 billion in the quarter, primarily related to employees, establishing standalone functions and IT systems, and professional fees. This was offset by realized tax benefits of $0.3 billion related to the separation of legal entities in preparation for the spin-off.
- Completed its annual review of liability cash flow assumptions at its run-off insurance portfolio in the quarter, which resulted in an immaterial impact to net earnings.