01—Abstract
Summary
Summary of the 10-K filed February 2, 2024. Cited figures are marked; the original filing is the authoritative source.
General Electric Company (GE) reported a strong financial performance in 2023, marked by significant revenue growth and a substantial increase in earnings, driven by robust performance across all its operating segments, particularly Aerospace.
The company's strategic plan to separate into three independent entities (GE Aerospace, GE Vernova, and GE HealthCare) has progressed, with the HealthCare business separation completed and plans for Vernova advancing. Revenue increased by 17% to $68.0 billiona, with segment profit showing a notable rise. Free cash flow also saw a significant improvement, reaching $5.2 billion, up from $3.1 billion in the prior year.
This enhanced cash generation was largely due to improved profitability and working capital management. The company continues to manage its debt effectively, with total borrowings decreasing. GE's outlook remains focused on executing its separation strategy while navigating economic headwinds, including inflation and supply chain challenges, through operational improvements and pricing adjustments.
02—Key points
Key Highlights
- Total revenues increased by 17% to $68.0 billion in 2023, driven by growth across all segments.
- Continuing earnings per share was $7.98, a significant improvement from a loss in the prior year.
- Free cash flow (FCF) improved to $5.2 billion in 2023, up from $3.1 billion in 2022.
- Aerospace segment demonstrated strong performance with revenues up 22% and segment profit up 28%.
- Renewable Energy segment losses decreased significantly, down 36% organically, reflecting cost reduction efforts and IRA benefits.
- The company has reduced total borrowings by $3.1 billion to $21.0 billion.
- GE successfully spun off its HealthCare business in January 2023 and is progressing with the planned separation of GE Vernova.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 2, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $35.35B$29.14B | +21.3% |
| R&D Expenses | $1.01B$808.00M | +25.1% |
| SG&A Expenses | $4.04B$3.67B | +10.2% |
| Operating Expenses | $31.63B$28.43B | +11.2% |
| Operating Income | $9.45B$1.35B | +599.9% |
| Net Income | $9.48B$336.00M | +2722.0% |
| EPS (Basic) | $8.44$0.05 | +16780.0% |
| EPS (Diluted) | $8.36$0.05 | +16620.0% |
| Shares Outstanding (Basic) | 1.09B1.10B | −0.6% |
| Shares Outstanding (Diluted) | 1.10B1.10B | −0.2% |
05—Questions
Frequently Asked Questions
What was GE's overall financial performance in 2023?
General Electric reported strong financial results in 2023, with total revenues increasing by 17% to $68.0 billion. The company also saw a significant improvement in profitability, with continuing earnings per share of $7.98. Free cash flow also increased substantially to $5.2 billion.
How did the separation of GE HealthCare and the plans for GE Vernova impact the company?
GE completed the spin-off of its HealthCare business in January 2023, creating a separate independent company, GE HealthCare Technologies Inc. The company is also advancing its plan to separate its energy businesses into GE Vernova. These strategic moves are aimed at creating more focused and agile companies poised for long-term growth.
What were the key drivers of revenue growth in 2023?
Revenue growth was driven by increases across all segments. The Aerospace segment saw a 22% increase in revenue, fueled by higher commercial engine and services demand. Renewable Energy revenue increased by 16%, benefiting from higher demand at Grid and Onshore Wind, and Power segment revenues grew by 9%, supported by Gas Power equipment and services.
How is GE managing its debt and financial position?
GE has focused on strengthening its financial position, reducing total borrowings by $3.1 billion to $21.0 billion as of December 31, 2023. The company maintains a strong liquidity position with $17.0 billion in cash, cash equivalents, and restricted cash at year-end. Credit ratings remain stable, and GE intends to maintain a disciplined financial policy.
06—Continue