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Q4 Results: Strong Quarter and Full-Year Results, Led by Aerospace and Power Performance

GE Reports Staff
January 24, 2023

Reporting GE’s fourth-quarter and full-year results today, GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp Jr. said that “2022 marked the beginning of a new era for GE. We successfully launched GE HealthCare, delivered strong financial performance, made significant operational progress, and continued our steadfast commitment to our customers.”

GE “finished the year strong, delivering revenue growth, margin expansion, and better cash generation,” he said. Culp also highlighted the successful separation of GE HealthCare in a spin-off on Jan. 3, with about 80% of shares distributed to GE shareholders.

For the fourth quarter, orders grew significantly across all segments, up 18% organically. Revenue also grew 11% organically,* led by GE Aerospace, Power, and GE HealthCare as those businesses saw solid market demand, price realization, and improved delivery. GE’s adjusted operating profit margin* expanded 290 basis points organically,* with particular strength in Power. Revenue and profit growth resulted in over 50% adjusted EPS* growth. GE also generated $4.3 billion of free cash flow* in the quarter, driven primarily by strong earnings and the company’s focus on improving working capital. 

Reflecting on overall performance, Culp noted, “Thanks to the high-quality work of our team, GE ended the year with solid revenue growth and margin expansion, and $4.8 billion of free cash flow.* In the fourth quarter, this was led by strong results at GE Aerospace, with organic order and revenue* growth above 20%, as well as Power, with double-digit growth.”

For the full year, orders were up 7%, with 22% organic growth in GE Aerospace and 13% growth at Power. Notably, total services orders were up 12%, supporting profitable growth next year. Revenue grew 6% organically,* driven largely by GE Aerospace, up 23% organically.* Adjusted margin* expanded 160 basis points organically* for the year, with robust services growth.

Culp also provided GE’s outlook for 2023, noting that the company is positioned to drive growth, profit, and cash. Organic revenue* is expected to grow by high single digits, with adjusted EPS* of $1.60 to $2.00 and free cash flow* of $3.4 to $4.2 billion.

Culp also noted that GE is making good progress on its plans to launch GE Aerospace and GE Vernova,** its portfolio of energy businesses, as standalone companies.

GE Aerospace, Culp noted, is a “premier franchise with a highly differentiated product and technology portfolio and leading positions in attractive commercial and military sectors.” The business continues to support customers in the ongoing growth across engines and services, as well as the existing fleet in service, while optimizing for a smarter and more efficient future of flight.

For the quarter, GE Aerospace experienced strong orders and revenue growth — both up over 20% organically* — with Commercial Services and Equipment revenue up about 30% organically* and Military revenue up about 20% organically.* Internal shop visits were up about 25%. Equipment orders were also a sign of strength, with LEAP units up almost 50%.

Momentum is also strong from GE Aerospace’s military and defense customers, who are expressing increased demand for GE’s next-generation technologies, including the XA100, which Culp noted would provide the capabilities to “ensure continued U.S. air superiority” and is among the programs GE Aerospace will advance in the coming year. Overall, Culp noted that GE Aerospace is “an exceptional franchise with a bright future as a standalone industry leader.”

In a testament to the transformation occurring under GE Vernova** CEO Scott Strazik’s leadership, Culp said that “Power delivered solid performance this year, and we’re making strides running a similar strategy at Renewables.”

At Power, orders grew in all businesses and revenue was up by double digits organically* in the quarter, driven largely by continued Aeroderivative momentum at Gas Power. Culp added that the business is well positioned for continued services growth, with its expanded high-efficiency air-cooled (HA) gas turbine fleet, highlighting a notable shift — nearly double — in the number of HAs that will collect payment at time of delivery, providing a reliable source of cash growth. “We’ve significantly improved Power, as demonstrated by our continued profit and cash growth,” he said.

Renewable Energy continues to be pressured, but Strazik and his team are controlling the controllable, and saw progress during the most recent quarter, with Grid returning to profitability, Onshore Wind services orders and revenue growing (excluding Repower), and continued improvements to orders and sales pricing. The future of the business looks promising, according to Culp, as key external catalysts, like the Inflation Reduction Act, improve the longer-term economic profile for Renewable Energy.

Culp noted that “our existing technologies in the GE Vernova** portfolio will play an important role in the energy transition, as the strategic imperative to electrify and decarbonize the world is a challenge that these businesses — with their vast installed bases — were made to meet.”

As GE looks to the year to come, Culp concluded, “we’re moving forward with our plans to launch two independent, investment-grade industry leaders that are well positioned to create long-term growth as we shape the future of flight and lead the energy transition.”


*Non-GAAP financial measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures can be found within GE’s fourth-quarter 2022 earnings materials, at For important information concerning our forward-looking statements, please click here.

**GE’s portfolio of energy businesses.