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GE Releases Its 1Q’21 Results

Steve Winoker
April 27, 2021

GE released its first quarter 2021 results today, and I encourage you to read the full materials and listen to our earnings call at 8:00 AM ET.
Key highlights on GE’s financial performance this quarter:

  • Total orders $17.0B, (13)%; organic orders (8)%
  • Total revenues (GAAP) $17.1B, (12)%; Industrial organic revenues* $16.0B, (10)%
  • Industrial profit margin (GAAP) of 2.3%, (3,260) bps; adjusted Industrial profit margin* 5.1%, (40) bps, +110 bps organically
  • Continuing EPS (GAAP) of $0.00, $(0.70); adjusted EPS* $0.03, +$0.01
  • GE Industrial CFOA (GAAP) $(0.5)B, +$1.2B; GE Industrial free cash flow (FCF)* $(0.8)B, +$1.7B, excluding BioPharma*

GE Chairman and CEO H. Lawrence Culp, Jr. said, “I am proud of the GE team's solid first quarter results, despite a still difficult environment for Aviation. We are improving our cash performance and profitability with Industrial free cash flow growth of $1.7 billion year-over-year, excluding BioPharma, and organic margin expansion across all segments, except Aviation. This continued progress sets us up well to deliver on our 2021 commitments. Our recent GECAS transaction serves as an important catalyst in our transformation to a more focused, simpler, and stronger industrial company. At the same time, our businesses are building momentum by accelerating our lean and decentralization efforts. We are shifting more toward offense and capturing opportunities in the energy transition, precision health, and future of flight. I am confident we are well positioned to drive profitable growth, achieving high-single-digit free cash flow margins over time and creating long-term value for shareholders.”

In 1Q, our FCF* growth was driven largely by better earnings and improvement in working capital. In our businesses, Power and Renewables continue to focus on profitable growth, and we’re especially encouraged by the 13% revenue growth in Gas Power services. In Healthcare, we saw increased demand for equipment and services as global procedure volumes recovered to pre-pandemic levels, which, combined with our focus on cost productivity, led to another strong quarter. At Aviation, we continue to position the business for the rebound, and while revenue declined, organic margin expanded sequentially. On the call, Larry and Carolina will provide further color, and I hope you see what we see – that our progress is high quality and sustainable.

Looking at the big picture, we are transforming GE into a more focused, simpler and stronger industrial company. We’re fortifying our foundation by scaling lean across the company and making progress on our decentralization efforts across nearly 30 operating P&Ls. Additionally, the GECAS transaction we announced last month is a significant catalyst, enabling us to focus GE on its four industrial segments. Post close, we expect to reduce debt significantly, bringing our total reduction to $70B+ since the end of 2018.

Looking to 2Q, we continue to monitor Aviation market trends and expect 2Q Industrial FCF* to show similar year-over-year improvement as 1Q. For the year, our 2021 outlook for revenue, margin, EPS, and FCF* growth ($2.5B-$4.5B, which excludes the impact of factoring reduction as of April 1st) is unchanged.

We’re driving profitable growth and value for the long term. As Larry mentions in his quote above, we’re prioritizing strategic opportunities in the energy transition, precision health and the future of flight. We’re doing this as we continue to serve customers in vital global markets, leveraging our vast installed base and strong service capability. Our focus on growth, profit and cash generation puts us on a clear path to achieve HSD FCF* margins by 2023+.

We appreciate your continued interest in GE, and please take care.

Thanks and best,



* Non-GAAP Financial Measure

For important information about forward-looking statements, please see here.