GE Aerospace

Good day, ladies and gentlemen, and welcome to the General Electric first quarter 2023 earnings conference call. At this time, all participants are in a 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 first quarter 2023 earnings call. I'm joined by Chairman and CEO Larry Culp and CFO Carolina Dijak-Hoppa. 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, similar to our fourth quarter call, our remarks will be brief today, reflecting the company we are now, and we'll move more quickly to Q&A. Over to Larry.

Steve, thank you, and good morning, everyone. Welcome to our first quarter as a new GE, a simpler and more focused GE. We are now GE Aerospace and GE Vernova, two industry leaders together. in their own rights. We're creating significant value today, underscored by strong first quarter results, 17% organic revenue growth with all segments up, more than doubling our adjusted profit with margin expansion in all segments, resulting in 27 cents of adjusted EPS and positive free cash flow. This performance reflects robust market demand for our innovative technologies and services and we're operating leaner and more focused businesses. Services proved again, they're clearly one of our best assets, representing more than 60% of revenue, given not only the resiliency and higher margins we enjoy, but the fact they keep us in daily contact with our customers. Since our investor conference in March, GE Aerospace has continued to see tremendous commercial momentum, delivering double-digit growth on the top and bottom lines. Our execution at GE Vernova is tracking well with continued signs of progress in renewable energy as power continues to deliver. Now with GE Healthcare on its own, we're focused on launching these two businesses as independent investment-grade companies. Further, we also continued to simplify the balance sheet, partially monetizing our air cap stake, closing out our Baker Hughes stake, and calling half of the preferreds. We also named two new exceptional board members, retired US Air Force General Darren McDew and Jessica Aul, both of whom have deep domain expertise in aerospace and energy, respectively. We completed consultations with our European Works Council, which allows us to build the teams with both internal and external leaders for these standalone businesses. We're also advancing the internal rewiring to separate the businesses. This includes working through our legal entities, tax, organizational, and capital structures, as well as standing up boards for both businesses. Though rest assured, job one remains our operating performance, which we'll dive into in more detail momentarily. So a big thank you to our outstanding teams, particularly our separation management office that is leading these efforts, as well as the vast majority of our global employee base that's focused daily on serving customers. These businesses are ready to deliver and realize our full potential as independent industry leaders. With that, Carolina will take you through our results.