Today GE released its 2022 Annual Report, which includes our Chairman and CEO Larry Culp’s fifth Letter to Shareholders and our 2022 10-K.
In his letter, Larry reflects on the year stating, “2022 was a year that propelled GE forward. Our changes and achievements were both small—one improvement to one process at one site—and big—successfully launching GE HealthCare as an independent company. Each was rooted in kaizen, ‘change to make it better,’ and delivered on our purpose to build a world that works.”
While navigating through a challenging operating environment, we were “controlling the controllable,” Larry noted. We maintained our day-to-day focus on meeting customer commitments, further strengthened our balance sheet, and made significant operational progress, which was all possible due to our team embedding lean more deeply. As a result, we delivered strong financial performance, ending the year with solid revenue growth, margin expansion, and $4.8 billion of free cash flow*. GE Aerospace led the way, delivering order and revenue growth above 20% for the year, and Power delivered double-digit order growth organically and achieved high single digit margins.
We also made meaningful progress on our plans to create independent, industry-leading, public companies. On January 3, we successfully completed the separation of GE HealthCare, distributing ~80% to GE shareholders. Thanks to the high-quality work of our teams, our plans to launch GE Vernova and GE Aerospace are continuing to progress.
As Larry writes, “2022 marked the beginning of a new era for GE. One where we are unleashing our full potential as three independent industry-leaders. Creating a smarter and more efficient future of flight, driving decarbonization through the energy transition, and enabling precision care are big challenges, not for the faint of heart. I know our teams are ready to deliver.”
As a reminder, GE will attend the Barclays and Citi Industrial Conferences on February 23rd and will hold our annual Investor Conference on March 9th. Larry, Scott, and other members of our senior leadership team will provide further insights into our businesses. GE will also host our 2023 Annual Meeting of Shareholders on May 3rd.
Thank you for your continued interest in GE,
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our annual report on Form 10-K and our fourth quarter earnings release.