GE announces second quarter 2023 results

Second quarter 2023:

• Total orders of $22.0B, +59%; organic orders +58%
• Total revenues (GAAP) of $16.7B, +18%; adjusted revenues* $15.9B, +19% organically*
• Profit margin (GAAP) of 8.3%, +1,510 bps; adjusted profit margin* 8.8%, +160 bps organically*
• Continuing EPS (GAAP) of $0.91, +$2.00; adjusted EPS* $0.68, +$0.32
• Cash from Operating Activities (GAAP) of $0.3B, $(0.2)B; free cash flow* $0.4B, +$0.2B

GE (NYSE:GE) announced results today for the second quarter ending June 30, 2023.

GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, "GE's second-quarter performance was strong, building on our first-quarter momentum and marking a solid first half of the year. Orders and revenue grew double digits, led by robust services growth across our portfolio, increased demand at GE Aerospace and record Renewable Energy orders. Today, we are raising our full-year guidance as market strength and the lean transformation within our more focused businesses drive significant profit and cash improvement across GE.”

Culp continued, "GE Aerospace is growing rapidly, executing on the ramp for customers and building services strength, while GE Vernova advances toward its spin-off as Renewable Energy improves and Power continues to deliver. Each business has its own critical mission and focus. We’re increasingly operating as GE Aerospace and GE Vernova as we prepare to launch these two independent companies sometime in early 2024.”

The company continued to execute during the quarter:

GE Aerospace

• Delivered double-digit growth in orders, revenue, and operating profit year-over-year driven by commercial momentum and strength in services. Commercial Engines & Services improved LEAP output by 85% year-over-year and Commercial Services grew 31%. Defense orders more than doubled, and the team improved unit output by 74% year-over-year.
• Signed historic Memorandum of Understanding (MOU) with Hindustan Aeronautics Limited (HAL) to produce fighter jet engines for the Indian Air Force.

GE Vernova

• Achieved record Renewable Energy orders of $8.3 billion and double-digit revenue growth of 24% led by higher equipment across Onshore Wind, Offshore Wind, and Grid, while Power delivered solid services orders and profit growth driven by continued productivity and price.
• Announced the commercial operation of Caithness Energy’s 1,875-megawatt Guernsey Power Station to support grid stability and the coal-to-gas transition in Ohio.