10-KPeriod: FY2022

GENERAL ELECTRIC CO Annual Report, Year Ended Dec 31, 2022

Filed February 10, 2023For Securities:GE

Summary

General Electric (GE) reported total revenues of $76.6 billion for the fiscal year ended December 31, 2022, an increase of 3% year-over-year. The company achieved positive cash flow from operating activities of $5.9 billion and free cash flow of $4.8 billion, a significant improvement from the previous year. GE successfully completed the spin-off of its Healthcare business in January 2023, a major step in its plan to separate into three independent companies. The Aerospace segment saw substantial revenue and profit growth driven by the recovery in air travel, while the Power segment also showed improved profitability. The Renewable Energy segment, however, experienced increased losses due to cost inflation, product quality issues, and restructuring efforts. GE continues to navigate inflationary pressures and supply chain challenges across its businesses. The company is actively managing its debt and returned $1 billion to shareholders through share repurchases in 2022. Looking ahead, GE is focused on completing the spin-off of its energy businesses into GE Vernova, while strengthening its core operations and managing its financial structure to support long-term value creation.

Financial Highlights

47 data points
Beta

Revenue

$29.14B

Net Income

$336.00M

1.2% Net Margin

EPS (Diluted)

$0.05

Total Assets

$188.85B

Cash & Equivalents

$15.81B

Free Cash Flow

$4.55B

Financial Statements
Beta
Revenue$29.14B
R&D Expenses$808.00M
SG&A Expenses$3.67B
Operating Expenses$28.43B
Operating Income$1.35B
Net Income$336.00M
EPS (Basic)$0.05
EPS (Diluted)$0.05
Shares Outstanding (Basic)1.10B
Shares Outstanding (Diluted)1.10B

Key Highlights

  • 1Total revenues increased by 3% to $76.6 billion in 2022, driven by strong performance in Aerospace and Healthcare.
  • 2Positive operating cash flow of $5.9 billion and free cash flow of $4.8 billion were reported, marking a significant improvement.
  • 3The spin-off of GE HealthCare was successfully completed on January 3, 2023, as part of GE's strategic plan to create three independent companies.
  • 4Aerospace segment revenue grew by 22% and segment profit by 66%, reflecting the recovery in air travel.
  • 5Power segment profit increased by 68%, benefiting from improved pricing and prior-year cost adjustments.
  • 6Renewable Energy segment continued to face challenges, with losses increasing to $2.2 billion due to cost inflation, warranty reserves, and restructuring.
  • 7GE repurchased $1 billion of its common stock in 2022 and reduced total borrowings by $2.8 billion.

Frequently Asked Questions

GE reported total revenues of $76.6 billion, a 3% increase from 2021. The company generated $5.9 billion in cash flow from operating activities and $4.8 billion in free cash flow, demonstrating a significant improvement in financial health. Net earnings attributable to common shareholders were a loss of $64 million, but this was heavily impacted by various charges and separation costs.

The spin-off of GE HealthCare was successfully completed on January 3, 2023. GE now holds approximately 19.9% of GE HealthCare's common stock and plans to monetize this stake over time. The company is continuing to work towards the planned spin-off of its energy businesses, to be branded as GE Vernova.

The Aerospace segment was a strong performer, with revenue up 22% and profit up 66% due to the recovery in commercial air travel and strong military demand. The Power segment saw revenue decrease slightly but profit increase by 68% due to improved pricing and fewer charges. The Renewable Energy segment continued to struggle, with revenues down 17% and losses increasing significantly to $2.2 billion, primarily due to cost inflation, warranty issues on onshore wind turbines, and ramp-up costs for offshore wind products.

GE reduced its total borrowings by $2.8 billion in 2022. The company also repurchased $1 billion of its common stock. GE's financial policy aims to maintain a disciplined approach with an investment-grade long-term credit rating. The company is actively managing its debt and expects to allocate additional capital to debt reduction in the future.