General Electric (GE) Spin-off Notes

January 20, 2023 Update

General Electric (GE) spun off ~80% of its healthcare business – General Electric Healthcare (GEHC) – on January 3, 2022. Regular way trading began on January 4, 2023. GE will retain ~20% of the spin-off to provide further capital allocation flexibility.

GE Healthcare services health care providers and researchers. It sells imaging, ultrasound, patient care solutions, and diagnostic machines to a global customer base. End markets are growing at a mid-single-digit clip. GEHC expects to grow revenue on an organic basis at a mid-single-digit clip. It expects EBIT margins to expand from mid-teens to low 20s. It expects to generate ~$2BN in free cash flow in 2022 and expects FCF to grow with earnings going forward. Here is the