General Electric (NYSE:GE) posted stronger-than-expected first quarter earnings Tuesday.

Positioned to deliver on 2021 commitments and long-term profitable growth  

• Total orders $17.0B, (13)%; organic orders (8)%  
• Total revenues (GAAP) $17.1B, (12)%; Industrial organic revenues* $16.0B, (10)%  
• Industrial profit margin (GAAP) of 2.3%, (3,260) bps; adjusted Industrial profit margin* 5.1%, (40) bps, +110 bps   organically  
• Continuing EPS (GAAP) of $0.00, $(0.70); adjusted EPS* $0.03, +$0.01  
• GE Industrial CFOA (GAAP) $(0.5)B, +$1.2B; GE Industrial free cash flow* $(0.8)B, +$1.7B, excluding BioPharma BOSTON – April 27, 2021 – GE (NYSE:GE) announced results today for the first quarter ending March 31, 2021.  

GE Chairman and CEO H. Lawrence Culp, Jr. said, “I am proud of the GE team’s solid first quarter results, despite a still   difficult environment for Aviation. We are improving our cash performance and profitability with Industrial free cash flow   growth of $1.7 billion year-over-year, excluding BioPharma, and organic margin expansion across all segments, except   Aviation. This continued progress sets us up well to deliver on our 2021 commitments.”  

Culp added, “Our recent GECAS transaction serves as an important catalyst in our transformation to a more focused,   simpler, and stronger industrial company. At the same time, our businesses are building momentum by accelerating our   lean and decentralization efforts. We are shifting more toward offense and capturing opportunities in the energy transition,   precision health, and future of flight. I am confident we are well positioned to drive profitable growth, achieving high single   digit free cash flow margins over time and creating long-term value for shareholders.”  

GE continues to build momentum on a stronger foundation:    

• Simplifying and strengthening GE: The recently announced GECAS and AerCap transaction focuses GE on its   industrial core and provides cash and a meaningful equity stake for further upside and flexibility as the aviation   industry recovers. GE expects to use the proceeds from the transaction to further reduce debt for a total reduction   of more than $70 billion since the end of 2018.    
• Accelerating lean & decentralization: GE’s lean transformation is scaling company-wide, driving sustainable   performance, including improved safety, quality, delivery, and cost, as well as high-quality revenue and cultural   change. Coupled with significant decentralization efforts, GE is enabling improvement at deeper levels of the   organization across nearly 30 P&Ls to drive greater accountability and move action closer to customers.    
• Investing in technology and serving customers: Driving organic growth efforts through new product   introductions and services capabilities. Recent wins across our portfolio include:  

â—¦ Energy transition: Secured largest combined Onshore Wind project in Renewable Energy’s history,   consisting of more than 530 turbines for the 1.5GW North Central Wind Energy Facilities in Oklahoma.   Began first commercial operation of Gas Power’s 9HA.02 gas turbine, the world’s largest and most efficient   gas turbine, at Southern Power Generation’s 1.4GW plant in Malaysia.    

* Non-GAAP Financial Measure  

â—¦

Precision health: Launched new, innovative solutions to support clinicians treating patients at the point of-care, assisting clinicians fighting COVID-19. Vscan Airâ„¢, a wireless, pocket-sized ultrasound with whole body scanning capabilities, delivers high-quality images directly to the clinician enabling sharing with   patients in real-time. Also launched Venue Fitâ„¢, a simplified, compact, intuitive ultrasound, as well as an   industry-first AI offering for cardiac imaging and a tool to display lung abnormalities on the Venueâ„¢ and   Venue Goâ„¢.    

â—¦ Future of flight: Secured agreements from Southwest Airlines for CFM International’s LEAP-1B engines to   power 100 Boeing 737 MAX 7 aircraft, along with a long-term services agreement, and Scandinavian   Airlines for CFM’s LEAP-1A engines to power 35 additional A320neo family aircraft, also with a long-term   services agreement, valued at $2.9 billion. CFM’s LEAP engines reduce fuel consumption by 15% compared   to CFM56 engines.  

Total Company Results  

We present both GAAP and non-GAAP measures to provide investors with additional information. We believe that providing these non-GAAP measures along   with GAAP measures allows for increased comparability of our ongoing performance from period to period. Please see pages 9-14 for explanations of why we use   these non-GAAP measures and the reconciliation to the most comparable GAAP financial measures.

2021 Outlook

GE reiterated its total company outlook for full-year 2021:
– GE Industrial revenues* to grow organically in the low-single-digit range.
– Adjusted GE Industrial profit margin* to expand organically by 250-plus basis points.
– Adjusted earnings per share* of $0.15 to $0.25.
– GE Industrial free cash flow* of $2.5 billion to $4.5 billion.
Effective April 1, GE discontinued the majority of our factoring programs. The expected Industrial CFOA impact will be about $3.5
billion to $4 billion with the majority felt in the second quarter, which will be excluded from our Industrial free cash flow
reporting. Combined with the $800 million reported cash impact in the first quarter from normal course activity, this equates to a
$4 billion to $5 billion cash range as described at the 2021 Outlook meeting in March.