GE announces fourth quarter and full year 2021 results

GE Chairman and CEO H. Lawrence Culp, Jr. said, “2021 was an important year for the GE team, marked by significant strategic, operational, and financial progress. We delivered solid margin, EPS, and free cash flow performance in 2021, exceeding our outlook. Orders for the year were up double digits, supporting faster growth going forward, while supply chain challenges, commercial selectivity, and uncertainty surrounding the U.S. wind production tax credit impacted our top-line."

Culp continued, “We're seeing real momentum and opportunities for sustainable profitable growth from near-term improvements in GE's businesses, especially as Aviation recovers and our end markets strengthen. Our dramatic debt reduction means we can further intensify efforts to strengthen our operations and play offense, setting us up to deliver between $5.5 to $6.5 billion free cash flow in 2022 and more than $7 billion in 2023. As we lay the groundwork to create three independent companies focused on critical global needs, we're encouraged by the support from our customers, employees, and investors. We're confident that our businesses will deliver long-term growth and value.” 

GE continued to make progress on its transformation:

• Announced plans to form three independent, investment-grade, industry-leading companies focused on the growth sectors of aviation, healthcare, and energy.
• Solidified financial position by completing the GECAS transaction and a $25 billion debt tender in the quarter, reducing gross debt² by approximately $87 billion over three years. GE has $35 billion of debt, approximately $16 billion of cash, and $13 billion³ in the AerCap equity stake and note and Baker Hughes equity stake.
• Drove innovation and reinvested for growth, delivering technologies that transform lives:
  • Future of Flight: Powered the first passenger flight, on a United Airlines Boeing 737 MAX 8, to use 100% sustainable aviation fuel in one engine. Awarded $1.6 billion contract for the U.S. Air Force's full F-15EX fleet.
  • Precision Health: Scaled Vscan Air wireless, a pocket-sized handheld ultrasound, to more than 70 countries. Acquired BK Medical, enabling further expansion into surgical and therapy interventions.
  • Energy Transition: Reached financial close on Dogger Bank C, marking an order for 87 14MW Haliade^TM-X offshore wind turbines. Earned order from Guangdong Energy Group for the first 9HA.01 gas turbines to run on hydrogen-blended gas in China. GE Digital acquired grid software company Opus One.

Fourth quarter 2021 (prior three-column reporting format¹; variances on a year-over-year basis)

• Total orders $22.1B, (5)%; organic orders (4)%
• Total revenues (GAAP) $20.3B, (3)%; Industrial organic revenues* $19.6B, (3)%
• Industrial profit margin (GAAP) 1.1%, (1,330) bps; adjusted Industrial profit margin* 9.0%, +280 bps org.*
• Continuing EPS (GAAP) $(3.24), unfavorable; adjusted EPS* $0.92, +$0.34
• GE Industrial CFOA (GAAP) $2.4B, +$0.4B; GE Industrial FCF* $3.8B, $(0.5)B; $3.8B ex disc. factoring*, $(1.9)B

Full year 2021 (prior three-column reporting format¹; variances on a year-over-year basis)

• Total orders $79.4B, +10%; organic orders +12%
• Total revenues (GAAP) $74.2B, (2)%; Industrial organic revenues* $70.2B, (2)%
• Industrial profit margin (GAAP) 1.8%, (820) bps; adjusted Industrial profit margin* 6.8%, +390 bps org.*
• Continuing EPS (GAAP) $(3.25), unfavorable; adjusted EPS* $2.12, +$2.07
• GE Industrial CFOA (GAAP) $1.5B, +$2.8B; GE Industrial FCF* $5.1B, +$4.5B; $5.8B ex disc. factoring*, +$1.9B

_{¹Based on prior three-column reporting format, which showed Industrial operations separately from financial services operations}

_{²Includes borrowings, after tax pension & principal retiree benefit plan liabilities, operating leases, 50% preferred stock, and factoring}

_{³As of January 21, 2022}

_{*Non-GAAP Financial Measure}