On October 24, 2023, General Electric Co (GE, Financial) announced its third-quarter results for the period ending September 30, 2023. The company reported significant top-line, operating profit, and cash growth, leading to an increase in the 2023 guidance. The planned launch of GE Aerospace and GE Vernova is set for the beginning of the second quarter of 2024.
Financial Performance Highlights
General Electric Co (GE, Financial) reported total orders of $17.9 billion, a 19% increase year-over-year, with organic orders up 18%. Total revenues (GAAP) were $17.3 billion, a 20% increase year-over-year, while adjusted revenues were $16.5 billion, an 18% organic increase.
The company's profit margin (GAAP) was 1.7%, up 330 basis points, and the adjusted profit margin was 9.8%, up 760 basis points organically. Continuing EPS (GAAP) was $0.08, up $0.36, and adjusted EPS was $0.82, up $0.99. Cash from Operating Activities (GAAP) was $1.9 billion, up $1.1 billion, and free cash flow was $1.7 billion, up $1.0 billion.
Company's Commentary
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, "GE delivered another quarter of very strong results with double-digit growth in revenue, profit, and cash. At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in Commercial Engines and Services. At GE Vernova, our Grid and now Onshore Wind businesses were both profitable this quarter and we expect their performance to continue to improve. With our two largest Renewable Energy businesses delivering and Power's continued strength, we remain highly confident in GE Vernova's spin-off next year."
Future Outlook
Based on the year-to-date results and continued momentum in the fourth quarter, GE is raising its full-year 2023 guidance. The company is well-positioned to launch GE Aerospace and GE Vernova as independent companies at the beginning of the second quarter of 2024. GE Aerospace and GE Vernova continue to take recent action on their priorities, delivering double-digit growth in orders, revenue, and operating profit.
Financial Tables Summary
For the three months ended September 30, 2023, GE reported GAAP metrics including Cash from Operating Activities (CFOA) of $1,888 million, Continuing EPS of $0.08, Net EPS of $0.23, Total Revenues of $17,346 million, and Profit Margin of 1.7%. Non-GAAP metrics included Free Cash Flow (FCF) of $1,672 million, Adjusted EPS of $0.82, Organic Revenues of $16,306 million, Adjusted Profit of $1,615 million, and Adjusted Profit Margin of 9.8%.
For the nine months ended September 30, 2023, GE reported GAAP metrics including CFOA of $2,354 million, Continuing EPS of $6.54, Net EPS of $6.91, Total Revenues of $48,531 million, and Profit Margin of 16.9%. Non-GAAP metrics included FCF of $2,189 million, Adjusted EPS of $1.77, Organic Revenues of $46,154 million, Adjusted Profit of $3,889 million, and Adjusted Profit Margin of 8.4%.
Based on year-to-date results and expectations for continued momentum in the fourth quarter, GE is updating its full-year 2023 and business-specific guidance. The company now expects organic revenue growth in the low teens, Adjusted EPS of $2.55 to $2.65, and Free Cash Flow of $4.7 to $5.1 billion.
