“In 2024, on a standalone basis, we expect GE Aerospace and GE Vernova to grow revenue, profit and cash.”

In context

“his improved year-over-year due to lower functional expenses and higher interest income. Overall, it represents significant progress since 2021 when costs were $1.2 billion. We are pleased to see digital turn profitable as the team prepares to formally join GE Vernova. Our industry leading software helps utilities, Grid operators and others address the growing complexity of energy transition. And GE Aerospace and GE Vernova are ready to go. The teams are fully staffed and corporate headcount, which was close to 5,000, just a few years ago, stands at less than 200 people who will be with us into second quarter to execute the final spin. This temporary cost in the first half of 2024 is embedded in GE Aerospace’s full year guidance. Stepping back, we are pleased with our performance in 2023. In 2024, on a standalone basis, we expect GE Aerospace and GE Vernova to grow revenue, profit and cash. We will share more on business guidance shortly. Now turning to GE Aerospace, this quarter, demand remained robust with GE and CFM departures growing high teens year-over-year, orders were up 10% with solid services and commercial engine orders. Revenue was up 12% driven by commercial, up 15%. Profit was up 8% benefiting from increased services volume and pricing net of inflation. This was partially offset by unfavorable equipment mix from the expected higher installed and lower spare engine deliveries and higher investments. Reported margins are roughly flat year-over-year and down 70 basis points organically as unfavorable mix and investments offset higher volume and price net of inflation. In Commercial, services revenue was up 23% from higher volume, pricing and heavier work scopes. E”