General Electric Company

General Electric finished the year on a positive note with an all-around beat in Q4, improved cash generation, margin expansion, and revenue growth. It continues to improve its operations, further embedding decentralization and lean to serve its customers better. Power delivery, within GE Vernova with continued stability at gas and took significant actions for positioning renewable energy for future profitability. The plans of GE to launch GE Aerospace and GE Vernova are progressing well. In the quarter, the top-line momentum grew significantly across every segment. By segment, the revenue at healthcare, power, and aerospace was up double digits which is driven by improving delivery, price realization, and market demand. Power was particularly strong, thereby offsetting renewables. Overall, the company’s cost-out and price actions outpaced inflation. GE continued to reduce its cost structure post-healthcare spin and execute its restructuring plans, setting up stand-alone, fit-for-purpose structures for GE Vernova and GE Aerospace. We provide the stock of GE with a ‘Hold’ rating and a revision in the target price.