General Electric Co (GE) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 25, 2023 7:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen, and welcome to General Electric's First Quarter 2023 Earnings Conference Call.

I would now like to turn the program over to your host for today's conference, Steve Winoker, Vice President of Investor Relations. Please proceed.

Steven Winoker - VP, IR

Thanks, Liz. Welcome to GE's first quarter 2023 earnings call. I'm joined by Chairman and CEO, Larry Culp; and CFO, Carolina Happe. Some of the statements we're making are forward-looking and based on our best view of the world and our businesses as we see them today.

As described in our SEC filings and on our website, those elements may change as the world changes. As a reminder, similar to our fourth quarter call, our remarks will be brief today, reflecting the company we are now and we'll move more quickly to Q&A.

Over to Larry.

Lawrence Culp - Chairman & CEO

Steve, thank you, and good morning, everyone. Welcome to our first quarter as a new GE, a simpler and more focused GE. We are now GE Aerospace and GE Vernova, 2 industry leaders in their own rights. 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 $0.27 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. Services proved again they're clearly one of our best assets, representing more than 60% of revenue, given not only the resiliency and higher margins we enjoy, but the fact they keep us in daily contact with 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 lines. Our execution at GE Vernova is tracking well with continued signs of progress in renewable energy as Power continues to deliver. Now with GE Healthcare on its own, we're focused on launching these 2 businesses as independent investment-grade companies. Further, we also continued to simplify the balance sheet, partially monetizing our AerCap stake, closing out our Baker Hughes stake and calling half of the preferreds.

We also named 2 new exceptional Board members: retired U.S. Air Force General, Darren McDew and Jessica Uhl, both of whom have deep domain expertise in Aerospace and Energy, respectively. We completed consultations with our European Works Council, which allows us to build the teams with both internal and external leaders for these stand-alone businesses.