It was only 14 months ago that GE announced what Chairman and CEO Larry Culp called a “defining moment” for the iconic industrial giant. He shared GE’s plan to form three industry-leading, global public companies focused on aerospace, healthcare, and energy.* “We’re embarking on this exciting journey from a position of strength,” Culp said at the time.
Earlier this week, GE marked a pivotal milestone on that journey with the successful spin-off of GE HealthCare (GEHC) as an independent, investment grade company. Led by CEO Peter Arduini and now trading on Nasdaq under the ticker symbol “GEHC,” GE HealthCare will continue to be a global leader in Precision Care and create meaningful outcomes for patients, customers, and shareholders alike.
While it is bittersweet to say farewell to colleagues at GEHC, the future is bright for GE. The company continues to advance its plan to form two additional independent public companies positioned to deliver long-term growth and create value in critical, growing sectors: GE Aerospace and GE Vernova.
Both GE Aerospace and GE Vernova are on track with their plans to become standalone public companies in early 2024 while continuing to invent the future of flight and lead the energy transition. The teams have fully embraced the new brand names and identities — first announced in July — that capture GE’s iconic past while opening the door to an even more exciting future. And in December, the GE Vernova portfolio announced that it intends to base its global headquarters in Cambridge, Massachusetts, and launched its new purpose statement: “The energy to change the world.”
Even as the planned companies look ahead to the day they’ll stand independently, they will continue to deliver for their customers every day while also addressing the challenges facing their respective industries.
With lean and innovation at its core, GE Aerospace is shaping the future of flight in both the commercial aviation and military sectors. The team is focused on meeting an unprecedented ramp in production as travelers return to the skies and airline fleets undergo product expansion and renewals. And in September, GE Aerospace successfully concluded its Adaptive Engine Transition Program efforts and stands ready to deliver critical capabilities to the next generation of U.S. military aircraft.
Culp, who also serves as CEO of GE Aerospace, and the GE Aerospace team will be able to take advantage of the robust demand tailwinds by leveraging GE’s best-in-class technology and leading product portfolio. Engines produced by GE and its joint ventures are currently featured across 70% of global airline fleets, with a vast installed base and a strong backlog of more than $300 billion that will continue to drive customer retention and services revenue.
GE Aerospace has also become a leader in developing sustainable technologies, pushing the industry to new heights. In 2022 alone, it announced a partnership with Boeing on a hybrid electric demonstration program, successfully completed a world-first hybrid electric propulsion system test at altitude conditions, and ground-tested a Passport business jet engine on 100% sustainable aviation fuel.
With its positions in both the commercial aviation and military sectors and its leadership in sustainable technologies, GE Aerospace is an exceptional franchise that will continue to shape the future of flight.
At GE Vernova, our portfolio of energy businesses, CEO Scott Strazik and his team are transforming the business for long-term profitable growth. GE Vernova’s planned spin comes at a crucial time for the global energy industry, which is growing rapidly as the world continues to electrify. Electric generation is expected to grow 50% by 2040, requiring $10 to $15 trillion in new investment over the next 10 years to meet new demand. At the same time, longer-term external catalysts, like recent U.S. climate legislation and the European energy crisis, are increasing investment and interest in new decarbonization technologies and will be game changers for the industry’s medium- and long-term growth prospects.
GE Vernova is well positioned to take advantage of these opportunities, with technology from GE’s portfolio of energy businesses already helping generate approximately 30% of the world’s electricity. From the first HA-powered plant in Vietnam to a contract to support Los Angeles’ grid capacity to a strategic partnership to support South Korea’s offshore wind growth, the GE Vernova portfolio continues to help the world add critical power capacity while supporting a more sustainable energy future. And with a backlog worth a combined $100 billion-plus across Power and Renewable Energy, GE Vernova is uniquely positioned to work with its customers to supply more sustainable, affordable, reliable, and secure solutions for years to come.
With lean at their core and GE’s storied legacy of innovation woven tightly into their DNA, GE Aerospace and GE Vernova are building momentum toward their respective launches planned in early 2024 and will continue to drive value and build a world that works.
“These two global leaders are creating a smarter, more efficient future of flight and driving decarbonization to address the energy transition,” Culp said. “We could not be more excited about the future.”
* These plans may be subject to the outcome of legally mandated consultation in some parts of the world.