General Electric (GE) 25 Oct 222022 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the General Electric Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. My name is Denise and I will be your conference coordinator today. [Operator Instructions].

As a reminder, this conference is being recorded. to conference, program of Steve like host to Investor now today's for Winoker, would turn over the your Relations. I Vice President proceed. Please

best Denise, Arduini, Culp; and earnings Carolina quarter Dybeck usual, GE's Healthcare, welcome here CFO, the and and Chairman I'm on CEO, with GE Keep Peter in to see our by of pre-spin, Larry based some forward-looking joined, are progress we performance. as of also Thanks, and XXXX CEO, statements insights world and making share Happe. that we're as and is the our view on mind to call. businesses today. them third us

with Larry. on described website, the may those that, our the elements And as I'll over call filings As hand in to and our change changes. SEC world

to grow thank Vernova, good and GE way. solid business third broad-based quarter everyone. new leading remains results like future building and Power profitability. legislation Within climate crisis, took on energy year delivered We're reset profitable longer-term position European for catalysts the you, energy U.S. Steve, aerospace to recent helping this technologies increasing and the with we this quarter investment the decarbonization significant our And GE in for growth. actions momentum external renewable this and morning, track

Peter with today a and independent leader operate an you bringing in global is I'm home now. GE January full now and planned a early Our stretch ready Healthcare us health. preparing precision proud XXXX. COVID, in spins are they've new on Vernova to accomplished, in and give update. CFO the navigating Healthcare GE launch in CEO of to track to with GE in what as Arduini is particularly

really Now ramp. unprecedented a franchise, moment during especially GE this this exceptional industry I'm excited to leading Aerospace. be on

and unparalleled year. We leaders new roles leading a nearly half sectors. nicely we balanced fresh in are and tremendously the and have And talented highly to that and positions last portfolio a commercial perspective team, experience as product technology differentiated attractive their military have in

Russell who Wright, runs our our Our Shane as engine In to like years recently of recognize retiring team Rahul XX leading I'd joined business, after includes CFO. commercial vein, high-caliber who's Stokes that military and who same service. Ghai, business Amy Gowder,

As and better, management, existing real daily support improvements in capability last in efficiently process of more that The to a XX% what quarter's and deliver are delivery. Taking the time additional is environment. engine improving units example, team closer those to of XX% especially in with supply was credit point helping impact walls that's Engine a Aerospace and and many double deliveries. entire our and to and We've look really has contributions to build This GE thank has The and both been weekly opportunity world-class GE manage months. and at and invaluable team. customers partners, a taking our of across business each embrace help the moving the deeply with business suppliers a us toward helped have our several out cadence our LEAP the sequentially digits organization. solve sequentially, harder lean problems stood to the reprioritized operating they're and P&Ls. last Through been you. four imperative within the clearly rhythms, our faster more we a frequent engineers over me chain over output faster dynamic for monthly Shane, more real. up up

future, continued efforts pandemic the sequential our improvements foreseeable deliver. which help will post the requires recovery for However, lean us

more. than sequentially a and shop visits have Lean generate more grew reduce in improve time, where time XX% story similar services, and cycle helps for year-over-year. XX% us internal turnaround We capacity

future demand, to toward rhythms the with years of strategic how we to to an meet In we to this our industry continue operating eye month shape extraordinary updated plan flight addition strengthening for our last and a technology with excited aerospace will collaboration our the when about of this the leader. energy it's more have product business quality in become me stand-alone what The and roads, even room, coupled come.

things but a is respect future. first, with an exceptional of the to this business First post-COVID course, ramp, with

company X%, driven Slide declined on by against at X. Onshore megadeals comp Turning to in a year total Orders wind. results renewables tough prior

were across renewables, X% strength orders Excluding services, up segments. Revenue up up particular positive in X% and was all with XX%.

shortly. offset the XXX and and selectivity. and pricing as X from digits about Aerospace $XXX macro up offset more PTC Aerospace the again. in operating continued and to points segments. easing chain pressures renewables, adversely hold. basis our delivery Adjusted volume declined due points, which This warranty the related margin was double at down at supply by Collectively, than we'll about heightened both price digits percentage higher which and actions our address and million affected XX%, largely mid-single and labs strength and lower market business fleet new volumes resulting tied by quarter, renewables recovery was performance, Looking included from Healthcare to by the of Power slightly revenue took down were reserves U.S.

XX largely outage impact, Adjusted EPS was seasonality. margin planned and Healthcare Power down. to expanded by improved declined service basis sequentially Excluding points. this year-over-year due

quarter. We operating high expansion for EPS. revenue, warranty to And aligned single-digit $X.X the expecting billion. year $X.XX $X.XX to renewables the range. the in quarter trending and Excluding margin adjusted was was this for challenges. a we're higher continue continued for with prepare year, build of reserves chain expect this outlook ramp all, pleased All we our driven quarter, flow maintaining We've team $X.XX. at This basis GE environment. and by is color primarily XXX through fourth inventory for and now shared $X.XX to XXX of operating cash free the I'm cash related we points reserve, toward to tough $X.X end strong the largely how the with Free supply prior continued earnings. billion, the driven as EPS ongoing renewables the flow has And to by low our we're of second work growth navigate in about

Power continued power steam, the at turnaround GE grows, to on Turning and generator at innovation cash Vernova. as stable root, focus services utilization nuclear. take progress ongoing gas a is our at conversion

been Now more on where we've all our disappointed with year-to-date renewables, performance.

leadership his and Scott to their power helm renewables Strazik leveraging from team proven lessons playbook the at transform with fundamentals. is the Our

to a and we our approach we in product EDF me to schedule. demand investment the were business, from initial wind financially break in Grid mid-XXs. and setting the the in down $X But tranche three billion order. how move take performance efforts, roughly up margin business we the XXXX commissioned Let an in significant quarter, now those transitioning at we're to projects This improve grid. profitability Recall, strong. of automation we're in recently remains we will be environment. X-gigawatt of and offshore, next going backlog, At Haliade-X look Offshore Grid. double-digit the to turbines in I'll knowing $X into year, a be expect revenue on along to reverse and and Onshore expect And is a billion which with as offshore this wind, there. parts, growing. will fourth for to is here our profitability. first with thanks growth cost, cost inflationary Market hardware orders profitability XXX deliveries challenging profitable reduce in XX for installed we new a shifting The expansion year we're and roughly

we've larger industry, to wind in to than significantly. Overall, turbines economics business, in the $X segment the over quickly the megawatt billion This of battleground. added We've project to per is is the onshore and revenue operating competitive and introducing profitability Finally, of renewables, increasing Since fast-growing XXXX, we most a more XXXX. onshore customers. grid, expect XX% innovated hours leading loss. gigawatts performance XX provide today the turbine for achieve for

turn these rapid fleet production by It dynamics, are. new time manufacturing we such of and in supply the much faster innovation quality broader availability. need However, to the products, and counteract which industrialize stabilize industry, takes to We these and strains, pressures to chain. on

and implement reduces enhances so repair and call to simplifying and deploying XXs processes. product many In variants workhorse repeatable availability suppliers corrective standardizing manufacturing This and consistently. deliver we drastically high what fleet, too cost. we're existing enhancements monitor we're can quality more measures, into products, our we our programs First,

We availability expect warranty couple a true and these and deliver leader of associated for our fleet corrective to the the related as next years. over customers. With our with reserves measures to north, be implement we'll continue

and as seeing improvement the both have can play, focusing Second, where capabilities in we profitably execute past, product We're orders equipment-only about in talked we've about we're and more projects. where sales pricing. including markets on being also more going service the and right fewer selective we after

just $XXX plan certainty delayering Across with million next much-needed over Wind. XX% especially the aligned market, in at tightly $XXX customers, months next decreasing global spoke headcount this in and for GE of XX in unlikely. over million to fixed The changing. we're legislation Wind annualized provides been $XXX expecting the bill's Vernova, program climate Reflecting days about Recent stability significant credits reducing and the year Act more we decarbonization have We're ago, was from we GE's we're Inflation us U.S. and savings by implement Energy. when decade The our on tax restructuring the Renewable Reduction prospect billion game Onshore technologies. broadly a Third, costs. of about few years. broader Onshore

gas Breakthrough $XX Technologies. Act billion the taxonomy, for energy provides Europe, resilient. we're role In urgency the which alongside pragmatism seeing reinforces least and important investment Additionally, in more and of emissions new renewables. infrastructure to and Nuclear Jobs the more Grid, Take and nuclear make investment reduce European and at

address full road blends want swiftly wind, customers to map, energy including and security concerns, GE's gas to looks Europe As fuel engage technology grid.

our catalysts a that economic results inflection renewables to and see businesses orders current a To improved overall. future in contrast won't significant factor point our profile for troughed. for they at Altogether, the we're robust Onshore demand these external overnight, and the we remarkably. into end, While

let previously, to in renewables remain Vernova's we year future. about to it over planned excited profitability Carolina. than hand XXXX, GE that, we a about very While With expect achieve me later

Thanks, Larry.

the from an Slide I'll X, to share basis. Turning quarter on insights the organic

up margin revenue aerospace exclude single at were healthcare. we points. and this, points. if growth volume the basis, making renewables Equipment continued onshore This Power. market second way with margin digits we're impacted larger up orders Aerospace a across as led the high services and with planned of decrease sequential largely our on $X.X orders revenue in half than was even Recall and U.S. increased revenue orders While digits billion revenue more double-digit up pressure of declined an as with XX% percentage all revenue with up our a double backlog. growth XX% for down spot, progress X% demand On by remained ramp. X%, and and and margin driven Meaning, have Services Overall, bright strong. segments. XXX largely XX half basis represent contracted which was basis would by basis reserves, the points. adjusted expanded XXX our

Our easing. was a contributor, we actions of strength and points early are are and Aerospace margin $X.XX. XXX EPS with logistics together hold, from points Volume, price, XXX of supply in headwinds seeing costs. basis was down chain contributed signs offsetting basis services. almost with inflation expansion, major up taking Adjusted

Continuing reserves, expected. the Excluding have separation which by an cover as increased $X.XX. negative, costs EPS was primarily I'll renewables would transaction, insurance momentarily, it and driven been up

our including additional to warranty is half elevated our About we at EPS now the prior and view. related and to Regarding charge from updates reserves incremental margin this are renewable. of the outlook, pressure

and healthcare pressure, investments businesses. offset largely due expect to with inflation strength other in to also the We

billion. contributed cash limited flow despite Moving capital, to adjusted again, free to impact this. had generated high quarter. $X.X flow Strong We single-digit Working very on of cash a cash. this free growth earnings

dynamics. at the Looking

cash. receivables, First, of use the

of receivable to was Contract were the build was focused quarter, payments. to typical collecting as deliveries from high quarter, assets Our fourth is volume, growth. accounts was to down source. cash. also payable timing use significant quarter-end inventory two source days. in improving a also This mainly of DSO Progress due year-over-year later leading Inventory accounts on resulting and for in a terms we quarter the But a second occur by receivable continue the balance.

power aerospace billings. positive and drove gas million. utilization was strength $XXX in Continued AD&A

to now the In $XXX fourth X. higher our fourth quarterly Given receivables AD&A deliveries. and quarter reduced we to flow be the due million. full expect about current collections is expect schedules, year-to-date large free year and cash aligned balance estimate strong Year-to-date, with the quarter, the airframer impact approximately we given delivery inventory aircraft the

with for So and the is be color the typical the our of efforts, and operational in expect This aligned year. seasonality flow $X.X last free line billion quarter significantly quarter. fourth with about will cash we higher flow we cash shared

operations. EHS Adjusted progress primarily driven over lower in Now year-over-year. and costs Corporate. a was down This functions by moment and on costs other were and XX%

For of from which includes and costs the dynamics. year, hundred of million, million $XXX favorability primarily we a less expect corporate than rate few FX interest

investment with we expense, years in As sized we and reduces deliver by about appropriately. reinsurer spin further administration, of Healthcare, GE improves we the take planned portfolio footprint. for million at our Therefore, counterparty strategy. expected in is plan receivable to over what terminating the our our At next we're to deploy remains risk the cost-out annualized for the current that exchange Insurance, to in costs reinsurance and The from several restructuring reduced fourth $X.X actions to for reflect assets activity of $XXX today's can contracts. roughly corporate prepare is corporate-led settling of few looking $XXX in majority ensure billion derisked million the quarter. This the program feed our we

be at environment, was the assets current fair an market this and million. Given need roughly to transferred $XXX the charge value of rate after-tax

over expect assets to mature. recoup time We the as this

While approximately million And $XX charge, $XXX our loss. the roughly positive was excluded adjusted million. income was insurance net from results, without

also we annual our completed LRT. quarter, This

impact expected, charges discontinued about this banks This In to million related to resulted portfolio, with a litigation As we no unfavorable results reserves by year. total positive ongoing $X.X operations, to in matter our this approximately primarily mortgage recorded third the borrowers. billion. and for for in of with runoff this brings margin consecutive BPH Polish litigation driven in earnings $XXX

shipments by quarter. growth in Services, was This visit revenue factories. services, MROs Military driven XXX up Now and favorable external lower turning especially and driven over substantial sequentially. price. Commercial we're spare year-over-year strong Aerospace, growth by aerospace shop sequentially, XX%. see units part our flow Commercial improved, led sales up both our grew and were Orders better growth X% military. up our and orders XX%, businesses. on by LEAP driven a very was down mix. to against strong shipments, delivered equipment significantly engine was engine in through tough to also year-over-year, by was while Revenue revenue higher to shipments comp, internal down starting a up

XX% services basis investments. and more expect Overall, to than mix improvements year-to-date on significant increased services, long-term tangible the expanded sequential fundamentals engine Based growth continued on opportunity favorable driven performance commercial and business teens by XXXXs growth cost. increase reinforce drive and higher strong However, market in high helped Aerospaces greater improvement be margin we margins points, a growth. growth price negative line XXX than from in units. shipments full This here. year commercial Segment engine strong with top and Aerospace offset

difficult project-driven down orders XX%. to had record this to making Turning Orders were uneven, due Recall, Renewables. a where last offshore the we year comparison. remains profile

better was and volume more growth driven at business onshore new Segment margin in by the XX% net at driven across businesses. at warranty The reserves the and remainder year-over-year, significantly pricing decline was Importantly, Over two-thirds the Revenue digits labs grew. XX%. services, our lower Grid excluding by This selectivity. of many by heightened PTC services related lines and pressure repower, from and inflation grew driven than offset product and declined double declined businesses. of lower U.S. onshore all all U.S. volume onshore. primarily

though, improved all onshore, businesses reported year-over-year. profitability Excluding

annual to this is our expect half about $X long expectations, loss significant catalyst, full about we billion. now our is incremental impact The While view. this IRA in We the a previously medium year term. prior of versus of pressure included elevated quarter reserve an

associated impacting orders and defer However, to near investments customers into the term, cash. future continue

discussed much While combined has XXXX. we're the disappointing, us on catalysts with into actions the head footing taking, we've external been puts we XXXX a stronger as

to Moving Power.

quarter. outage we're seasonality expected, lower deliveries some As the half and dynamics third to outages CSA managing through service fourth for timing quarter pushed typical a equipment and year second

generation with gas grew the in Europe in and and digits Looking mid-single at U.S. Global GE market. the strength utilization year-to-date,

meet we by as aero demand. on electricity prices orders the gas and globally choice XX%. and driven higher This businesses. a was growing to third dispatch gas In While remains of cars gas units to HA monitor services in growth and were availability, continue fuel all up quarter, derivative

business. continues Meanwhile, to units team CSA new project coal build offset driven unfavorable associated shipped exit offsetting margin to build improve, fewer primarily and escalation. X%, quarter-to-quarter. underwriting the CSA pipeline. and mainly as prioritize declined gas as together and growth base We HA by grew we equipment our disciplined was the And outages our services points. due we've But orders we where X%, fewer gas, said, cost-out. volume. and Importantly, remain continue at price year-over-year. two price where This basis expected lower more uneven continued selectivity the declined installed lower aero driven by by margins selectivity equipment film our two Revenue transactional mix outage Segment to still, than XXX to services gas, and driven and equipment

for continue quarter, remains sets next. the and expansion. and at services. to Power up Looking and we Power fourth generation cash And year-over-year margin equipment expect and revenue of year single-digit growth in growth low track growth this significant earnings deliver and on This its to sequential outlook

who Healthcare. happy cover to will I'm welcome Pete, Now GE

and planned track spin, Larry Carolina. a GE on of which Thanks, join week before It's the first pleasure earnings on the is call for to you last Healthcare's January.

to excellent chapter running of recent value an ground GE achieved the establishing healthcare as with working deep Healthcare preparing independent experience. expertise, next leadership public Board progress in together including for we several forward Healthcare's GE Our diverse in creation. our and as company. with future growth and I has months, Directors We hit of made its team look milestones them financial

filing. level. our Form-XX important historical GE both process step disclosure at our public key the and forma pro was financials for and company in Another segment details This Healthcare total the

We structure. planned also capital disclosed our

go-forward incorporate near significant policy company. And a while in flexibility solid we to will we to We'll expect provides investment-grade financial believe our share business. We our financial to us X strong our term, deleveraging expect in more team drive prioritize for for the at look rating you and invest the senior position customers to Day. and to patients years work discussing with of ahead. My for many on and we I strategy outcomes meeting leadership our our vision better the as December forward productivities Investor continue

performance. important with sequential conversion a the Moving GE that continue particularly our productivity for Market remained increased improvement. delivered growth to watching the and labor. address strong Overall, line impact of closely. inflationary demand They backlog been and speaking This despite the positive than constraints ever around tireless and and regularly work the Top higher industry. products reflects based provide ultrasound partners Healthcare deliver chain have teams quarter to product customers providers. to more with to supply across challenges ability their impacted fulfillment. by and improve business we our supply costs, and We're on behavior their makes imaging our

particularly spending improve keen and leading costs. for An solid, provider cautious That in patient performance a as we're economic sequentially. demand products trends, the reduce public taking keeping they environment. Europe approach increase increased healthcare post-pandemic longer is demand providers and the to to procedures, and Overall, said, are services customer which eye term. on invest at in prepare in U.S., continue as global continued important more dynamic Looking that is and customers systems healthcare modernized a operating and In Asia. productivity monitor

machine negatively the focused list is and and and and was Currency both upgrades up recently a with certain negative sequential Equipment increased up of ultrasound improvements our year-over-year FDA's digits execution year-over-year. Healthcare up plus topped revenue artificial low equipment intelligence were authorized year-over-year learning-enabled we're orders quarter, digits. imaging Notably, of services strong, sequential to the to at were GE Equipment NPI from impacted double results was with year-over-year five growth. low commercial double reported Services due tough and by medical bright Near XX% Looking spots. comp launches. Organic Service devices. term, growth. X% points. reclassification on

quarterly us business. positive plans. continued Sequential delivered by impacts. Our up Segment margins on price and quarters focus ongoing our these remains We've monitor also We've identifying by price which supply we have with parts, commitment first R&D constraints quarter. improved due a supply to digits helping orders to been and risk flags, is days. if declined continues and have quarter, lines dynamics since base results. and now year-over-year, redesigned reducing XX% requalified our positive. spend supply offsetting volume, broadened shortage, price One year-over-year not XX.X% replenished innovation XX since a also long-term of inflation X,XXX positive of growth to accelerate higher embedding margins at two way -- nearly double over driven within our We've costs. the consecutive And driving supply throughout red of through lean last declined and

While of chain supply 'XX challenging, improve the pressures 'XX. into for and remainder we expect to

the cash With we GE with approaching, flow spin environment. to color needs, provide critical it sequentially. Healthcare's free year-to-date be and year-over-year grew and on inventory mind cash our up inventory our inflationary to and in suppliers stock quarterly to In customer slightly work we manage on Keeping continue total, thought some performance. helpful would

that us confident customer fourth can meet demand. quarter leave Our actions we

flow will unlock to value, investment, the optimize same us R&D team a to impacting of investments prioritize At the profit, in operating meet grow operating faster currency XXXX. be higher fourth the We're highly on is quarter as our in which now billion energized and year, spin model. we and significant or and demand range in time, into this the enabling we approach For we revenue based shareholder expect full expect confident still inflation, $X.X free and to growth. closing, we new billion $X.X build planned In billion cash chapter. $X.X our inventory higher mid-single-digit to more are expect the

I'll Larry, back to you. hand that, with so it And over

excitement. your Pete, you. I thank share

cost to momentum fun. is think to going on XX. remains Renewables third very on delivered Aerospace strong Lean I continued outlined, improved stable quarter. to the reset and GE Power quarter. like taking Healthcare, close in earnings cash to just I'd and profitable build for a Pete for as action some performance. all GE. of we year on driving are quality, at delivery and process these my enablers at the closed-loop decentralization momentum, the the improvements, week this our serve are Lean. And do which safety, the team as enhanced sustainable. mid frame. later, TXXX improvements of key XXXX foundation Kaizen team One and we're has growth. have machining Take Slide track

a our there's starting set a volume. leaders, And Real to partnering pairs independent the power let's our Now industry and to we're always GE short from secured AMC ability use to monitoring. ongoing we're to in its sticks full announcing efficient do, generation new previously. lead testing hydrogen compared process Kindle that with launch Health fueled this power energy At our three made completed gas, creating Aerospace, with This potential relationship space, while to Force. to we to investment-grade an yields with first-time order further transition, XXX% U.S. more with delivering clear healthcare. natural Air Empower businesses. with to It's initially sites progress Healthcare future is will adaptive by about to scaling patient energy lines, of more foundation, Louisiana's engine to on by help Lean and equipment. just through and engine precision Steve, It's across smarter unleash flight, GE expanding enable their two and go an collaboration questions. that close to continues innovation. Energy with core months. a with lien that, with and cycle the XX% efficiency. driving plans businesses second And support enabling decarbonization are through Healthcare the live provide transition home class XAXXX XX% up innovative remote the in care it

Thanks, Larry.

one we Before and in ask busy to get fellow can please the line? open we many everyone people on this so and can question, possible open analysts day. just consider earnings as line the queue as again ask Denise, your the to you

Nigel ahead. [Operator Instructions] first Please Research. from comes Wolfe The from go question Coe

Thanks. Good morning, everyone.

Good morning, Nigel.

I'll keep question. the one So

want restructuring be question Renewables, to I that charge the just the On And the work to the get or with stable sufficient done. confirm need the you've cover is charges the U.S. scope return quarter. to of better on to entire to is That's sufficient do the back markets? onshore to the needs we market to my profitability? in that business to laid Or recover out, real breakeven

take let in Nigel, me that order.

$XXX obviously. but availability resolving way important we're point on. that geared for performance, have is Onshore us in a we it's an year given the to been profitable all what us working position puts today, charge here, what out touched recent we've taking think I million really on The end XXXX. Wind toward for the laid be we've the fleet issues state, that not in That's

ample be what us what up restructuring, out design not more set forward availability, other we need to move the with be addition only in and gives helps to us and think improvements profitable and that to flat from the but really us to deal That XXXX. room we with to I tend are manufacturing in profitable to referenced, fleet there.

on year be expecting where the meaningful IRA. need will really we So another around parentheses move next probably numbers, get from we and we'll short in where year we'll We the this, to to on term, be from the op touched there. help in have 'XX, but profit Carolina then aren't

quarter this next we've never from all business we've likelihood decade. for of you when 'XX access enjoy in late year. wind way about of surprise. 'XX never do to That to we've pause, highlighted as I better in we going on we the a move clarity, had none the they'll to relying third more the are customers that in couldn't taking year now we're that But had was seen here that fact, actions some to In we government onshore a result think, they was legislation. waiting that that U.S. a happen a visibility of -- for in talked July. for But operating incentives going than think we've pleasant support Remember, rest the didn't

So volume, But Inflation for profitability doing everything operationally the a that the geared toward a lower in context. decade Reduction this level meaningfully. for we've been prospects business just, is I of think, improves Act

The Please from go Petrone Mizuho next Anthony question comes Group. from ahead.

Healthcare. congratulations getting close to the spin GE and first to on the Thanks to team with

And So medical of number this call. spin as Pete the right a as large just question companies think it device relates several now certainly would already classify will head out the the into is a we've be well as and I Helmut highly in on of variables to Pete, here, XXXX. space we I still for had lot report mixed. hospital there, as And customers. environment

Specifically, two last guidance. elect not to issue hospital we operators large week, had

On the have medical posted some better actually companies device of procedures. slightly side, the flip

it the bit. sequentially, to actually looks GE Turning Healthcare business orders like improve a

just context, congratulations maybe Thanks view the that as as lot to with to a customers a very hospital team XXXX. So just background on and your thoughts again. company the and maybe its speaks your early high-level on

the that of backlog some showing this some in well other we both particularly particularly post-COVID out as QX, from the of subsiding. patient to a a investment I providers But different reports increases we the going see Anthony, of prepared global question. demand in actually to Asia, tech thanks as The stimulus EMEA the incremental med price markets increase in from there's Yes, in street, positive U.S. been the we for are be labor, on public growth. growth watching growth. Obviously, look, the and seems but money the reasonable of be see cost outside amount there's to or mentioned to that's evolving But environment, U.S. market, point, as improving. your China, comments, and actually

pretty customers I'm now And so regularly we see within of amount still with the a speaking and reasonable demand system. pent-up

in think we growth. it's a big It 'XX, actually I year-over-year recovery a realize 'XX as comp. tough all that procedures to as equipment well pretty was

stack, seeing look in if we're versus you we're double-digit still still And so growth 'XX. 'XX a seeing two-year at

the we'll then our our periods it plan normal sure. to again, at about obviously announcement. strategy question. relative end to for guidance So more sharp on X, on December talk your for keeping the of eye and lot talk Look, time a QX a Thanks, about in our we'll

Thanks.

please. question, Next

question The next go Citigroup. Please Andy from ahead. Kaplowitz comes from

Good morning everyone.

morning, Andy. Good

QX to majority billion I restructuring that planning in own of and than corporate think, but mentioned plus restructuring QX. your coming was cash $X expectations Corporate additional So you're in Vernova between the the higher take, you in, of

how your assess really the cash? in to cash more your 'XX. to that the businesses like puts generation we need color the of and this $X what think think cash And So year? to said versus I guidance about into how you But you've do old us of 'XX plus would give versus of billion takes rightsizing could know look going for X.X% the you about context

Okay.

So sure, I understood the question.

So in to cash talking the XXXX. we you're about get how

Okay.

the businesses about So are. we've we talked and different where

Just to comment on the restructuring.

XXXX, into still us So momentum XXXX improvement strong and the we significant expecting you are XXXX But XXXX. about we going and profit impact we that now, holds. with have that that of year, and that take will we've restructuring also probably are both cash this and for where said, right a talked cash

clearly it year. ramp, continue aerospace You an a business, the business look will big by unprecedented COVID on in rebound next and at from which

also still Pete as as today. We we will On to that out mentioned, one as improved availability the strong to the just the to on go will orders the well as take mentioned into earlier see have start expect from our on we the backlog, both that and that charge thing, is so cost impact continue well. executing XXXX products we but healthcare Renewables,

see to with say Power. you Grid being add a improve. put of profitable. that also to all in XXXX. inventory together, strong then improvement. start to capital Put all I reducing grow, I the to working expect together you'll opportunity that services still would to for that and would see to So and And you're we going continue continue ARs. that And of and improvement

plan everything are we've, think in January. next cycle, And budgets provide in done earnings forward-looking here and the cash outlook we heading into our I out strat quarter have Andy, several now do effectively to several else just I our fourth and current is that at what think, years that weeks over last the intent of and come

question. Great. Denise, next

Brendan Alliance Please question Bernstein. comes next from from ahead. The go Luecke

we touch here. of business. competitive wanted to up real about for on setting thinking should business the smaller be you base Good disadvantage morning. rightsizing How I Thanks just the question. Onshore down taking the my having for implications yourself longer-term quickly Wind a for Are a scale road?

Brendan, again, that I'm sorry, could you part ask of last the please?

down scale a being perspective at GE from Onshore risk road? the a there of Is a disadvantage

don't so whatsoever. Brendan, think I

respects, argue many in pursuit part led that could our current has think to us it been I in has that of that one scale the underperformance.

from of our to forward think will time looking period the years, that are in position out efforts better North I I IRA it argue going our to go product a competitiveness. enhance here come structures better time customers North one in, it America, we're tends know entire I products, does the when here trough really particularly when really propositions, it in all that think seeing quickly ultimately, be don't the and it here, forward I anything restructuring, trough, led in scarcity cost don't to customers U.S. the better would respect both we're you the many a the a where think undermine with and move at wind space. our the that particularly to as be And a really fashion. in market committed going we about but we've today. but a of the got last be several is It's as historically. maps team do we one in upsmanship Wind than sure can road a better to are about play the in advantage. America to are the value will in geographies And of and Onshore to and many It home we of have reliability. with have rest to. our that's We change onshore It as this We're as better investors. not make lead markets field we Scott mean may where specmanship, you're well, We selectivity that or order's here we won't better anything that through competitiveness, performance be I doing only lead are to for in is what know kicks

have I think particularly important intention in wind. a all people no of businesses. will to we thing because that in all be things being good any our That's onshore of

today of And playbook as that an we as team certainly you've be they've of I to relative the given particularly going in what loss it's running part seen, part Scott Renewables, and but frankly, to and, in program across business. important the acute the the do broadly think operating refer Onshore Wind that's onshore. power in more it's of transformed size what effectively the

Denise, next question.

Jeff Sprague Research. comes Please question ahead. next The go Vertical from from

Good just aero. little you. Maybe everyone. morning, a more Thank on bit color

Just of a jumping me to out here things today. couple

AD&A but Pratt I your think necessarily, and originally, aftermarket billion-ish to growth we year year. X the aftermarket, posted to started also you the headwind, Collins be at kind and we're thinking competitors expect I of here. the then at XX% looking would don't for now speak $X XX% And to just

XX%. Your spares number is up

into we if should maybe timing, particularly was could of in how wonder if in I to the unusual kind XXXX? of those. address just AD&A expect And anything track spares So What business? -- there both you

The of welcome take that latter, mean levels the the fourth I'll in and But in we're I know seeing is in after the Carolina the think terms I'll we're you're demand, of let in XX%. in overall what speak and to to business 'XX. COVID maybe see going continue is to quarter drought to right former. revenue I just Jeff, we facing exactly incredible aerospace, up

a visits business really was I the the service and mix that got and helped those a think to air can. well, performance as are an margin scope aftermarket favorable as this as within the volume, things and year-over-year partners were from cash to in the from current we visits and parts respect trying number fleet with we perspective, in robust. our as frankly, more aftermarket. We much possibly our saw really, and think, we've of to Shop specifically, the quarter a keep up I airlines, from a shop us sequentially, only

little mindset travel only that delivery into about demand flying the clearly leadership, robust year of the that that bit we that but in the benefited quarter. can is times, number the going and a part to third all we of and bit in of But said, higher a turnaround think a tempering So respectable we operating has we fourth been is a meet quarter still customers the They're these mix continue leisure some I with drive the second public. be, not on-time up been way. see respect it recently, have the that that help the We'll other It of 'XX. than spaces. but I airlines excited of others the shorter do half, little the having really hospitality quite of to with a and fourth. And airline outlook in really what probably give to will moving margins the of more the number here some end think, the to on

the do that. we're well want and to solution positioned So Carolina, AD&A? be we obviously just in of part that regard, to

Yes.

the to you Jeff, on 'XX referenced billion headwind comparing So year-over-year, 'XX. $X right. you're AD&A, that's When of

in about about which quarter, is flow. be positive. year had is year were $X.X be year-to-date the if we flat in will in So billion 'XX, sort out if that $XXX negative. of we positive XXXX. $X.X flow, in gets expectation the our way million million panned of full third still we now XXXX, us But put it we negative latest were that And The expecting to we has

we continue to XXXX, you inventory. If deliver look aircraft then expect the do airframes into to from

the some talk will to say, about to that be guide we'll for next headwind us also that year. more expect I when we for offset the some, would from number. lands, you that deliveries than So where And with a provide engine But outflows. us we exactly to

question. Thanks. Denise, next

from comes from Nicole question Deutsche ahead. next Your Please DeBlase Bank. go

morning, Yes, thanks. Good guys.

morning, Good Nicole.

businesses, potential the to all Just the on the of XXXX, you. Thank does the it you now timing spin the still spin, see kind to you in expecting grade thinking would start around about how and rated rating benefit at of that parentheses want that is change the to be business to profitability guys profit all are before Just Vernova number consummated? agencies in have actually the that positive of spin? Renewables guys investment

we much very we're, with out laid not team the with track new Vernova Nicole, and health Pete spend but care in again, only just on early early the in as last year, November. 'XX, here

very grade in that we you're aspire much commitment what excited businesses plan. I'm to operationally of spot the touched as strategy, intact, restructuring. be the forward terms couple And and all with a that our investment move with the both fleet which very framework, three have we've the That think why bode help on energy times lot is of navigate relative about and to I our that enhanced I controllable, in that in environment, support on. product Vernova. We today effort doing the coupled with controlling we're a and obviously, charge legislative availability concerns our the the talk increasingly, think and Renewables timely. clearly seeing breadth particularly do things. all the security, security the we're more for Europe, here in customers, alone of energy trilemma, I GE U.S. around objectives, concerns couldn't let We think, them as be sustainability strategy, particularly to to this affordability we And of well

I very our will the otherwise, think but within in feel business, an investment-grade much control, I an which, print good were trajectory we the those this it's things be again, think investment about So which business. of

on So very track. much

question. next Denise,

The from ahead. Please next question comes from go Steve JPMorgan. Tusa

morning. good Hi,

proceeds the are the then you planning And What on or on guys one was your you're of quick keeping sheet close So weeks doing the I Carolina, with that the what stock breakeven. talking factor a last of out cash was just the healthcare. what's the about you balance that -- in the mid-September mean spin? couple were in to swing on Thanks. quarter? after

Thanks, Steve.

the higher performance, and we I compare collections on thought. the dynamics would to quarter. also flow gas and better performed say, about see both derisk inventory. than aero spare assets. came turbines, and higher We're were was so that them. have stronger delivery more of services billings to and together than to So receivables we proud working fourth higher and services, we deliver We we utilization I'm the than more play saw first engines anticipated, the rigor had management, And on that that overall, that did we've wanted, and quarter. And on The of parts the to billion how What I'd know contract in pushing also higher yes, we a drove to on collections, well, and if you you I the were this then on free can purchases to actually you to Laguna, receivable saw following daily cash aerospace also quarter have managed earnings. especially in material collect better couple about elevated things. side. see $X.X going and of be Then talked teams the out say as And stronger would all, to of it's where like we really

the on by AD&A, our which the aircraft really which positive businesses. across we So so relative numbers. we impact well, reduced X-days is pushed thought finally, was better delivery than -- forecast, for a the on us And then year-over-year, that's to

flow of billion what that's for us $X.X guide of got flow, free and reiterating billion So to $X.X the year. full the overall, free of cash cash

second proceeds. Your on was the healthcare question

talked too do we've keep with it's early part that. of we're would that but healthcare, about say So to a yes, going what we to

framework allocation structure. a We are iteration we and capital the have -- capital

we'll due time, and share that come to in back more. So

question next Okay, Denise, please.

question Your of America. from Obin Please Bank comes from go next Andrew ahead.

Hi, guys. Good morning.

charge So $XXX terminate previously disclosure seated care you single you third in that to all agreed third so in reinsurance long-term quarter, substantially a after-tax insurance through quarter. company, had exposure million the

Does things? make it do a easier the care to long-term are down I Are connected? question guess things you guys the road? transaction, up So is, these cleaning this

asking. for thanks Andrew,

of risk. transaction continue is So to would start really reduce say good with, we to a work this to how I example

that. that and billion third I stronger it optionality keeps by reduces a we previously a broader $X.X said risk back future. for our a the makes invest would and will bringing we're So everything book of And held party. positive is assets say we were that

Thanks.

Next question.

next The question comes Please Ritchie Joseph Goldman from go Sachs. ahead. from

is everyone. morning, Good Peter. for My question Thanks.

only to the $X.X the running of And will understand of year, quarter. so path for the the want bit -- third in the it seems in sequentially this flow business really to free year billion cash middle you're things normalizing a little because as improve behind I healthcare try like about

beyond path So maybe that about talk XXXX? just

for thanks the Joe, question.

And of the or consistent actually certain and X equipment of X thousand pieces such of a we areas, mentioned index as areas could half the really made healthcare mid-single-digit year, just with an heard into growth I in and chips that see come comments, a areas there chunk stocking going sometimes you've in components let sourcing into be The flow. here mean, other and in as transferred. decision the business, in our on conscious count of taking to you other we couple of And and critical can't that parts parts. As that on MRI. case, on level where other second the within next might get right not the shortage I a big

for into out so customer And and backlog out. 'XX. we've part have actually that's a what of commitment orders laid We very strong well

into have moving more see were we're and of Obviously, year-over-year we liquidating going we I chain I $XXX But cash we that that through. are majority -- what the the it commitments we I see the that we're -- supply the million in we upper XXs. so here seeing as going to believe mentioned, think next now free as flow sequentially, quarter-over-quarter. continue really think grew actually quarter-over-quarter year. the is we accelerate But of you're And is which to into had had improvement. and about QX improves, it to seeing with

think get go quick Denise, next. A one -- let's you first can in two more questions. try to from, I

Mitchell go The Please next question Barclays. comes from from Julian ahead.

for Thanks very me much in. squeezing

quick So It's yes, comment. really I'll try Steve's on for and be Vernova.

-- 'XX. in had guide, to EBIT that year price on all? that going I the for cost, $XXX $XXX Any mentioned around color in on what are And at and Carolina color I then think year there's any flow million How that $X back. million Volume, XXXX. X $XXX look this the minus split? costout, where of big of big balance swings? maybe million, plus A help Just will there's warranty billion this cash coming think FX, that? any does

So the with. start mentioned you couple Julian, of a important well, ones to most

how restructuring working the through But is the improve So piece will install also as sort -- the we we're one and products and of it. also the the workhorse the product. help of industrialization

So you of charges And this of won't you that say profitability. you year recurring will take course, you forward. we the won't see that -- all improved together, the see put going

the if think I XXXX. see cash do it, pressure you and Grid XXXX, But we on improvement in, So Wind side. you say, have positive some for a about would you have Onshore significant

would I the have restructuring say, decentralization and You actions continued there.

in see significant that XXXX improvement will a you on together, is restructuring completed. that then the of in And moving XXXX. and all put XXXX, you So into basically,

benefits the and see demand to a IRA volume expect You'll see full we through. big coming

now Some get progress the them orders majority XXXX. with of those the as -- with but in XXXX, probably that to end new payments And well. coming of

sort step and on that's So cash. on 'XX, how 'XX you also 'XX of through profit to

also us the areas. in right, the rationalization of in to we've inventory as extreme help absence that Julian, And us will order the the PTC a I customization a book in more, product given that I more terms -- business relative hasn't that environment of on healthy with in flows. business. year. some in couple I a carrying well, order the think, feeling a working the from attendant then the the to We'll this capital perspective that we're labs and we all of anticipated be with way aspire of the carry postponement of of of variance to the fallen other in right. clearly, side has book think it late here seen just the Caroline we've But There's got hit had we we've think this more normal no that some

a business next in But we the on seen So years last clearly do. you've we are what more road that what think again, in the years. template see the Power lot the is I map several over that can you'll good here at and several in for pretty financials a working that

Great. last question, Denise, please.

go Deane from comes ahead. Please question next from Dray The RBC.

been Thank What's squeezing everyone. on done, the the plans cycle? us you. Good strat the the you're planning for I said Larry, give could an You you macro you're how there in And morning, for Thanks budgeting me would know have process. resilience platforms, in know update assuming? in. here. the fluid recession any you pretty it's it's -- Thanks. playbook got color be the GE? cutter, you of but helpful? I describe that's portfolio the 'XX not terms XX would of cookie

Aerospace given what's also weeks Renova, the did Deane, same through the recently the of in and not been just with turn the in wake a in the portfolio, with We We've timely, but Europe breadth right. only in couple the happened of just you're obviously, exactly of IRA. fact, team. Ukraine

as done how far years, last around we plan the in to prepared we've sure overall, that that perspective, come work in strat to really as I all through subsequent our I just that part frankly, load questions. a make in over the pleased say normal the critical simply the our have think front-end have three the intentions quite from remarks. instances Form-XX referenced and several team just up actually process I in calendar that to those came that Pete strategic We public. sharpening a earlier would ran is healthcare all the

how playing You've are we me ask game over heard lot what years, win. and a do we the

out. we the we at Deane, a macro, think as look going I view house to how here are don't have that as play to things unique

you'll concerned to on we to this a others, about do there. them. from same of customers demand. intend we're continue Aerospace, hear are to Again, regular said, them, bullish But the customers do that host issues production, quite around underway I'm the They later like ramps have think are outlook. us at plane and the tremendous sure just that. speak their and need want I with new I that basis to that are we we the week to support our airframer in out

pursue, at work macro unmindful perhaps of Aerospace, work the of think, exemption secular down but healthcare we're some activity bit of priority. to same think, the mentioned to the I So Pete I post got the a China, Europe, we're But lot in to thing we healthcare. to through of I that spoke think COVID modernization will a economic -- a here, well we've little here not uncertainty. and backlog in Pete, again, addition to a going the near-term also see U.S.,

also how the But that's a Renewables and more the I U.S. trilemma this to help to dynamic. inflation approach gas. is degree, not Reduction pragmatic forward, 'XX in I going bodes play a think Act to around move the think, wind both as really and Power we we that grid, the again, primarily health. well, for in precision given but And support for particularly then, here and

control going businesses suggest best broader the agenda going that we're much economic can. of that our what the the to the stay we do specific work to our in through do. it. to to XXXX, to we've quarter fourth that's is immune within to We're put I possibly from And Lean control secular again, controllable, true -- forward addition and and got best are the don't So so think I any want drivers insulated context or but

comment? Larry, Great. any final

you. thank Steve,

by Just January. are strong spins third in to a with led quarter, quarter. GE the here, delivered the team close the Healthcare early in on The team, Aerospace, starting very track, again

Xth by interest the Investor many then, see your on of your GE December. at company. And to we do stand the GE, time today, GE our IR your before the help team mentioned, and rest in Pete processes. As Steve, Carolyn hope in our Day investment as we your and Healthcare appreciate you of we Healthcare in to GE you of investment And consider

Thank you.

Thank you, for conference. Thank today's concludes and participating. you gentlemen. ladies This

disconnect. now may You