GE Reports Better-Than-Expected Earnings, Anticipates Headwinds

Company says it’s optimistic, but is working through Inflation and ‘other evolving pressures.’

Michael Wildes

Tuesday, April 26, 2022 at 02:02 PM ET

Verified

[File photo: Shutterstock]

Key Takeaways:

GE reported mixed Q1 results, with better-than-expected adjusted sales but a net loss and worse-than-anticipated free cash flow, leading CEO Larry Culp to temper full-year financial expectations due to ongoing inflation and supply chain pressures.
The Aviation division was a standout performer, showing strong revenue and order growth driven by a robust rebound in commercial travel, and anticipates continued strong demand and significant revenue growth for the year.
Despite current financial headwinds, GE remains committed to launching three independent companies and is actively investing in future technologies, highlighted by a new partnership with Boeing for a hybrid electric flight test demonstration program.

See a mistake? Contact us.

In its first-quarter earnings results call Tuesday, General Electric (NYSE: GE) reported better-than-expected sales, but CEO Larry Culp warned of headwinds that could tamper with earlier full-year predictions.

“We’re holding the outlook range we shared in January, but as we continue to work through inflation and other evolving pressures, we’re currently trending toward the low end of the range,” Culp said in a statement. “Importantly, we remain on track to launch three independent, investment-grade companies with leading positions in growing, critical sectors, well-positioned to create long-term value.”