General Electric (GE) Q4 2023 Earnings Call Transcript Summary

By / / General Electric

The following is a summary of the General Electric (GE) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • GE experienced substantial growth in 2023 with tripled earnings and a 70% increase in free cash flow.
  • Its Aerospace, Renewable Energy, and Power segments exhibited strong financial performance with positive profits and free cash flow.
  • Debt was reduced by over $100 billion and shareholders were returned $7 billion.
  • Q4 orders topped $5 billion, with annual orders reaching $23 billion, a roughly 50% increase.
  • Revenue for Renewable Energy and Power businesses grew in double digits, contributing to overall revenue growth.
  • Profits surpassed $1 billion, with Renewable Energy showing over $100 million growth. Free cash flow however was slightly negative.

Business Progress:

  • 2024 saw the launch of GE Aerospace and GE Vernova, with the latter focusing on electrification and decarbonization of the globe.
  • GE Aerospace engine deliveries were up 11% and secured over 450 engine commitments at the Dubai Airshow.
  • GE Vernova already contributes to nearly 30% of global electricity with its technologies.
  • The company projects revenue growth with GE Vernova and GE Aerospace in 2024, anticipating over $5 billion of free cash flow from GE Aerospace alone.
  • GE secured a 2.4 gigawatt order to support the US’s largest wind project, SunZia, which should ameliorate the losses suffered by the Offshore wind sector. The project is poised to position Offshore wind as a significant player in energy transition efforts.
  • Improved operational performance was noted in Mexico’s gas repairs team due to lean management techniques, forecasting increased customer satisfaction.
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