Ge Aerospace · NYSE:GE
Ge Aerospace — Q1 2023 Earnings Presentation
19 slides from Ge Aerospace's earnings presentation, Apr 25, 2023
Slide 1: GE first quarter 2023 performance
GE first quarter 2023 performance Financial results & company highlights April 25, 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 degree
Slide 2: GE: forward momentum
GE: forward momentum Encouraging start to the GE Aerospace growing Continued signs of progress year, reflecting robust rapidly amidst pronounced in Renewable Energy; market demand & leaner, ramp in services & OE units Power delivering … more focused businesses … on pace for '23 guide GE Vernova impr
Slide 3: 1Q'23 snapshot
1Q'23 snapshot RESULTS Y/Y-a) DYNAMICS • Robust demand driving top-line growth & operational Orders $17.6B +26% progress expanding margins in all segments ◦ Orders up in all segments … services +12%org, equipment +45%org Adjusted revenue* $13.7B +17% ◦ Adjusted revenues* up in all segments ... servi
Slide 4: GE Aerospace
GE Aerospace ($ in billions) 1Q'23 RESULTS 1Q'23 DYNAMICS-a) • Orders: $8.2B, +14% … Commercial Services & Defense • Revenue: $7.0B, +25%* ... Commercial Services volume; equipment growth with +53% LEAP engine deliveries; improved pricing • Margin: 19.0%, 240bps* ... volume, price, & productivity of
Slide 5: GE Vernova: Renewable Energy
GE Vernova-a): Renewable Energy ($ in billions) 1Q'23 RESULTS 1Q'23 DYNAMICS-b) • Orders: $5.4B, +94% ... equipment growth from Grid (HVDC projects) & Onshore in North America • Revenue: $2.8B, +5%* … higher Offshore & Grid volume • Margin: (14.6)%, +210bps* … Onshore & Grid cost out, price with mor
Slide 6: GE Vernova: Power
GE Vernova-a): Power ($ in billions) 1Q'23 RESULTS 1Q'23 DYNAMICS-b) • Orders: $4.1B, +1% … higher Power Conversion & HDGT equipment • Revenue: $3.8B, +11%* ... Gas transactional & Aeroderivative services growth + higher HDGT deliveries • Margin: 2.0%, +50bps* … services volume, price & productivity
Slide 7: Missions that matter to the world
Missions that matter to the world GE Aerospace … GE Vernova ... a global leader uniquely positioned defining flight for industry leader electrifying & today, tomorrow & the future decarbonizing the world Encouraging start to the year … our progress continues 7
Slide 8: Q&A
Air India signed an agreement for 800 LEAP, 40 GEnx-1B and 20 Q&A GE9X engines to power its new fleet of aircraft as well as related services agreements An Air India Airbus A320, powered by CFM LEAP engines; photo credit: Air India Reached agreements with TenneT to award GE-led consortiums with mult
Slide 9: Appendix
Appendix 10 Orders $ 11 Orders units 12 Revenue $ 13 FCF 14 Outlook 9
Slide 10: Orders - supplemental information
Orders - supplemental information ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS 1Q'23 y/y (org.) 1Q'23 y/y (org.) 1Q'23 y/y (org.) Aerospace $2.5 —% $5.7 22% $8.2 14% Renewable Energy $4.9 F $0.5 (16)% $5.4 94% Power $1.4 5% $2.7 (1)% $4.1 1% Total Company $8.6 45% $9.0 12% $17.6 26%
Slide 11: Orders - supplemental information, units
Orders - supplemental information, units (in units) 1Q'23 1Q'22 Aerospace Commercial Engines 519 553 LEAP Engines-a) 281 442 Military Engines 156 19 Renewable Energy Wind Turbines-b) 529 303 Wind Turbine Gigawatts-b),-c) 1.6 1.1 Repower units 46 177 Power GE Gas Turbines 13 15 Heavy-Duty Gas Turbine
Slide 12: Revenues - supplemental information
Revenues - supplemental information ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES 1Q'23 y/y (org.)* 1Q'23 y/y (org.)* 1Q'23 y/y (org.)* Aerospace $2.0 19% $5.0 27% $7.0 25% Renewable Energy $2.3 13% $0.5 (22)% $2.8 5% Power $1.1 16% $2.7 8% $3.8 11% 17% * -a) Total Company $5.3
Slide 13: Free cash flow performance
Free cash flow* performance ($ in billions) 1Q'23 y/y 1Q'23 DYNAMICS Net earnings (loss)-a) 6.2 7.4 • Strong earnings performance Depreciation & amortization 0.5 (0.8) • Seasonal dynamics in working capital: Operating working capital (0.4) 0.5 ◦ Receivables source from collections of high 4Q Current
Slide 14: FY 2023 Guidance: as of April 25, 2023
FY 2023 Guidance: as of April 25, 2023 Total company 2023 ◦ Mid-to-high teens organic revenue growth* ◦ $5.3B-$5.7B operating profit Revenue growth*-b) +HSD ◦ FCF* up year-over-year Adjusted EPS* $1.70-$2.00 prior: $1.60 - $2.00 ◦ LSD to MSD organic revenue growth* Free cash flow* $3.6B-$4.2B ◦ $(0.
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations 16 Equipment & service organic revenues 17 Organic revenues by sub segment 18 Adjusted earnings from continuing operations before income taxes 15
Slide 16: Equipment & service organic revenues by segment
Equipment & service organic revenues by segment EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 1Q'23 1Q'22 V% 1Q'23 1Q'22 V% Aerospace revenues (GAAP) $ 1,974 $ 1,654 19 % $ 5,007 $ 3,949 27 % Less: acquisitions — — — — Less: business dispositions — — — —
Slide 17: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 1Q'23 1Q'22 V% Aerospace commercial services revenues (GAAP) $ 3,671 $ 2,720 35 % Less: acquisitions — — Less: business dispositions — — Less: foreign currency effect — — Aerospace commercial services or
Slide 18: Adjusted earnings from continuing operations before income taxes
Adjusted earnings from continuing operations before income taxes ADJUSTED EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 1Q'23 1Q'22 V% Total revenues (GAAP) 14,486 12,675 14 % Less: Insurance revenues 791 764 Adjusted revenues (Non-GAAP) 13,695 11,910 15 % Total costs and expenses (GAAP) 1
Slide 19: Upcoming calendar
Upcoming calendar Annual Shareholders Meeting May 3, 2023 GE Aerospace presentation at Paris Air Show June 20, 2023 2Q'23 earnings July 25, 2023 3Q'23 earnings October 24, 2023 4Q'23 earnings January 23, 2024 19