GE, which has recently split into three independent companies, has reported total revenue of $18.6bn for the second quarter of 2022, driven by a strong performance by GE Aerospace.
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, “The GE team delivered a strong second quarter with growth in orders, revenue, and profit, as well as positive free cash flow. Aerospace was a key driver of our performance this quarter as the industry recovery builds momentum. In higher-margin services, GE delivered double-digit revenue growth, with Aerospace up 47 percent compared to last year.”
GE Aerospace orders of $6.9 billion increased 26% reported and organically with both Commercial Engines and Commercial Services up substantially year-over-year, reflecting “continued robust customer demand”. Revenues of $6.1 billion were up 27% reported and organically, with total services up 47% organically, driven by continued Commercial Services strength from higher shop visit volume and spare part sales. Commercial Engines was down, driven by supply chain disruptions impacting deliveries. Segment margin of 18.7% expanded by 1,510 basis points reported and 1,470 basis points organically, driven by Commercial Services growth, lower Commercial Engine shipments, actions improving pricing structures to address inflation, and contract margin review performance. Looking ahead, GE expects demand to remain strong. The business still expects to achieve greater than 20% growth and $3.8 to $4.3 billion operating profit.