GE Aerospace

Good day, ladies and gentlemen, and welcome to the General Electric fourth quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. My name is Liz, and I will be your conference coordinator today. If you experience issues with the webcast slides refreshing or there appears to be delays in the slide advancement, please hit F5 on your keyboard to refresh. As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Steve Winokur, Vice President of Investor Relations. Please proceed.

Thanks, Liz. Welcome to GE's fourth quarter and full year 2022 earnings call. I'm joined by Chairman and CEO Larry Culp and CFO Carolina Dybeck-Hoppa. Keep in mind that some of the statements we're making are forward-looking and based on our best view of the world and our businesses as we see them today. As described in our SEC filings and on our website, those elements may change as the world changes. As a reminder, GE completed a separation of our healthcare business this month. GE Healthcare will report separately on January 30th, so while included in our 2022 results, we're focusing today's commentary primarily on GE Aerospace and GE Vernova, our portfolio of energy businesses. Our remarks will also be simpler and shorter today, reflecting the company we are now, and we'll move more quickly to Q&A. I'll now hand the call over to Larry.

Steve, thank you, and good morning, everyone. 2022 marked the beginning of a new era for GE, following four years of strategic and operational transformation. We successfully separated GE Healthcare in a spinoff, distributing approximately 80% to GE shareholders on January 3rd. We strengthened our foundation, retiring an additional $11 billion of debt, bringing our total debt reduction over $100 billion since 2018. We continue to improve our operations, further embedding lean and decentralization to better serve our customers. And today, excluding GE healthcare services, which are both higher margin and more resilient, represented an even larger part of our portfolio, about 60% of revenues and 85% of our backlog. We finished the year strong, delivering revenue growth, margin expansion, and better cash generation. GE Aerospace led the way as we executed on an unprecedented ramp. Within GE Vernova, power delivered with continued stability of gas, and we took significant actions to position renewable energy for future profitability. External catalysts like U.S. climate legislation and the European focus on accelerating electrification are increasing investment in new decarbonization technologies. This progress has positioned us to create industry-leading, investment-grade, independent public companies. Thanks to our team's high-quality work, our plans to launch GE Vernova and GE Aerospace are progressing well. We're filling key leadership positions for both and we're preparing for two standalone businesses. We'll share more details with you, including our ongoing progress and timeline for the planned GE Vernova spin at our investor conference in March. I could not be more proud of how the GE team managed through a challenging external environment to deliver for our customers and partners in 2022. My thanks to everyone. And before I turn the call over to Carolina, a moment of reflection. Just two weeks ago, I, along with many of our leadership team, attended a memorial service for our exemplary DE board member and former U.S. Secretary of Defense, Ash Carter. Ash was a remarkable leader, incredibly humble and clear-headed. We miss him and his stage counsel. Now, Carolina, we'll take you through our results.