General Electric (GE) reported robust first-quarter results for 2023, including double-digit orders and revenue growth, with positive free cash flow.
The company achieved total orders of $17.6bn, marking a 25% increase, with organic orders up by 26%, while total GAAP revenues rose 14% to $14.5bn, and adjusted revenues increased 17% organically. The profit margin stood at 44.8%, with a 5,410-basis point increase, while adjusted profit margin reached 6.4%, with an organic increase of 330 basis points. The positive results were attributed to strong market demand and the company's progress in operating leaner and more focused businesses.
CEO of GE, H. Lawrence Culp, Jr., commented on the results, noting the company's positive cash flow for the first quarter in almost a decade. He stated that GE's franchise was standing up as an independent company in early 2024, and the company was creating significant value for the present and future. In the first quarter, the Aerospace business unit saw double-digit growth in orders, revenue, and operating profit YoY driven by commercial momentum and services. On the other hand, the Energy business unit, Vernova, experienced 5% organic growth in revenue and a sequentially and YoY improved profit, while Power grew by 11% organically.
Furthermore, GE made significant progress in taking action on its priorities during the quarter. It completed the spin-off of GE HealthCare into an independent publicly traded company, named two new members to the board of directors, and reached agreements with TenneT to award GE-led consortiums with multibillion-Euro contracts for Grid Solutions' High-Voltage Direct Current offering to support its 2GW programs in the Netherlands and Germany. GE's management believes that presenting both GAAP and non-GAAP financial measures enables increased comparability of its ongoing performance from period to period.
Source: ge.com