Ge Aerospace · NYSE:GE
Ge Aerospace — Q3 2023 Earnings Presentation
23 slides from Ge Aerospace's earnings presentation, Oct 24, 2023
Slide 1: GE third quarter 2023 performance
GE third quarter 2023 performance Financial results & company highlights October 24, 2023 CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degr
Slide 2: GE: A simpler, more focused company that is delivering
GE: A simpler, more focused company that is delivering Very strong results at GE, GE Aerospace GE Vernova raising full-year guide ... growing rapidly, from robust strengthening with GE Aerospace & demand & solid execution in improved performance GE Vernova to launch Commercial Engines & at Renewable
Slide 3: GE Aerospace & GE Vernova launches on track
GE Aerospace & GE Vernova launches on track GE AEROSPACE GE VERNOVA Global aerospace propulsion & Uniquely positioned industry leader services leader in attractive, growing supporting customers through commercial & defense sectors the energy transition Announced spin-off timing ... planning to spin
Slide 4: 3Q'23 snapshot
3Q'23 snapshot RESULTS Y/Y-a) DYNAMICS • Services strength & improving business execution driving Orders $17.9B +18% profitable growth amidst strong demand environment ◦ Orders robust … services +15%org, equipment +22%org ◦ Adjusted revenues* grew in all segments … services Adjusted revenue* $16.5B
Slide 5: GE Aerospace
GE Aerospace ($ in billions) 3Q'23 RESULTS 3Q'23 DYNAMICS-a) • Orders: $9.8B, +34% … Commercial Engines & Services • Revenue: $8.4B, +25%* ... +31%* Commercial Services, +23%* Commercial Engines (LEAP units +12%), +8%* Defense • Profit: $1.7B, +33%* … volume & price offsetting inflation & investment
Slide 6: GE Vernova: Renewable Energy
GE Vernova-a): Renewable Energy ($ in billions) 3Q'23 RESULTS 3Q'23 DYNAMICS-b) • Orders: $3.9B, +3% ... Grid & North America Onshore equipment, partially offset by International Onshore • Revenue: $4.2B, +14%* … equipment growth across Grid businesses, North America Onshore & Offshore • Profit: $(0
Slide 7: GE Vernova: Power
GE Vernova-a): Power ($ in billions) 3Q'23 RESULTS 3Q'23 DYNAMICS-b) • Orders: $4.3B, (1)% … HDGT equipment growth more than offset lower Aeroderivative units; services (1)% • Revenue: $4.0B, +9%* … HDGT equipment, Aeroderivative & services growth; normal 3Q seasonality • Profit: $0.2B, +61%* … volu
Slide 8: The GE team is building a world that works
The GE team is building a world that works We invent the future of flight, We electrify and decarbonize the lift people up and planet, and together, we have bring them home safely. the energy to change the world. Strong performance ... accelerating toward launches with exciting futures ahead 8
Slide 9: Q&A: Achieved significant milestones
Achieved significant milestone with the U.S Army’s acceptance of the Q&A first two GE Aerospace T901 flight test engines that will power the Future Attack Reconnaissance Aircraft (FARA) prototypes The T901 has also been selected to re-engine the U.S. Army’s Apache helicopters GE Achieved Vernova’stw
Slide 10: Appendix
Appendix 11 Orders $ 12 Orders units 13 Revenue $ 14 FCF 15 FY'23 Guidance 10
Slide 11: Orders - supplemental information
Orders - supplemental information ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS y/y 3Q'23 y/y 3Q'23 (org.) y/y 3Q'23 y/y 3Q'23 (org.) y/y 3Q'23 y/y 3Q'23 (org.) YTD (org.) YTD (org.) YTD (org.) Aerospace $3.2 52% $9.3 32% $6.6 27% $18.2 26% $9.8 34% $27.5 28% Renewable Energy $3.3 5%
Slide 12: Orders - supplemental information, units
Orders - supplemental information, units (in units) 3Q'23 3Q'22 3Q'23 YTD 3Q'22 YTD Aerospace Commercial Engines 900 181 2,333 1,303 LEAP Engines-a) 713 101 1,455 936 Defense Engines 132 126 643 159 Renewable Energy Wind Turbines-b) 411 668 1,487 1,232 Wind Turbine Gigawatts-b),-c) 1.7 2.6 6.2 4.6 R
Slide 13: Revenues - supplemental information
Revenues - supplemental information ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES y/y 3Q'23 (org.)* 3Q'23 y/y y/y 3Q'23 (org.)* 3Q'23 y/y y/y 3Q'23 (org.)* 3Q'23 y/y YTD (org.)* YTD (org.)* YTD (org.)* Aerospace $2.3 17% $6.8 26% $6.1 29% $16.4 26% $8.4 25% $23.3 26% Renewable E
Slide 14: Free cash flow performance
Free cash flow* performance ($ in billions) 3Q'23 3Q'23 y/y YTD y/y 3Q'23 DYNAMICS Net earnings (loss)-a) 0.2 0.4 7.4 10.0 • Strong adjusted earnings* primarily driving FCF* Depreciation & amortization 0.5 0.0 1.5 (0.8) • Continued momentum in working capital: Operating working capital 0.4 0.5 0.0 1
Slide 15: FY 2023 Guidance: as of October 24, 2023
FY 2023 Guidance: as of October 24, 2023 Total company -a) 2023 ◦ Low 20% organic revenue growth* ◦ ~$6B operating profit Revenue growth*-b) +Low teens prior: +LDD ◦ FCF* trending even better year-over-year $2.55 - $2.65 Adjusted EPS* prior: $2.10 - $2.30 ◦ HSD organic revenue growth* Free cash flow
Slide 16: Non-GAAP reconciliations
Non-GAAP reconciliations 17 Equipment & services organic revenues by segment 18 Organic revenues by sub segment 19 Adjusted earnings from continuing operations before income taxes 20 Adjusted organic profit excluding Renewable Energy warranty and related reserves 21 Adjusted earnings (loss) excludin
Slide 17: Equipment & services organic revenues by segment
Equipment & services organic revenues by segment EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 3Q'23 3Q'22 V% 3Q'23 YTD 3Q'22 YTD V% 3Q'23 3Q'22 V% 3Q'23 YTD 3Q'22 YTD V% Aerospace revenues (GAAP) $ 2,299 $ 1,968 17 % $ 6,806 $ 5,379 27 % $ 6,111 $ 4,736
Slide 18: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 3Q'23 3Q'22 V% 3Q'23 YTD 3Q'22 YTD V% Aerospace commercial services revenues (GAAP) $ 4,588 $ 3,502 31 % $ 12,141 $ 9,178 32 % Less: acquisitions and business dispositions — — — — Less: foreign currency
Slide 19: Adjusted earnings from continuing operations before income taxes
Adjusted earnings from continuing operations before income taxes ADJUSTED EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (NON-GAAP) (Dollars in millions) 3Q'23 3Q'22 V% 3Q'23 YTD 3Q'22 YTD V% Total revenues (GAAP) $ 17,346 $ 14,470 20 % $ 48,531 $ 41,272 18 % Less: Insurance revenues 842 64
Slide 20: Adjusted organic profit excluding Renewable Energy warranty and related reserves
Adjusted organic profit excluding Renewable Energy warranty and related reserves (Non-GAAP) ADJUSTED ORGANIC PROFIT EXCLUDING RENEWABLE ENERGY WARRANTY AND RELATED RESERVES (NON-GAAP) (Dollars in millions) 3Q'23 3Q'22 V% Adjusted profit (loss) (Non-GAAP) $ 1,615 $ 359 Fav Less: acquisitions and busi
Slide 21: Adjusted earnings (loss) excluding Renewable Energy warranty and related reserves
Adjusted earnings (loss) excluding Renewable Energy warranty and related reserves (Non-GAAP) ADJUSTED EARNINGS (LOSS) EXCLUDING RENEWABLE ENERGY WARRANTY AND RELATED RESERVES (NON-GAAP) 3Q'23 3Q'22 (Dollars in millions, per-share amounts in dollars) Earnings EPS Earnings EPS Earnings (loss) from con
Slide 22: Renewable Energy organic revenues, profit (loss) and profit margin
Renewable Energy organic revenues, profit (loss) and profit margin excluding Renewable Energy warranty and related reserves (Non-GAAP) RENEWABLE ENERGY ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN EXCLUDING RENEWABLE ENERGY WARRANTY AND RELATED RESERVES (NON-GAAP) Revenues Segment profit (loss)
Slide 23: Upcoming calendar
Upcoming calendar 4Q'23 earnings January 23, 2024 23