GE Aviation and Energy Start Trading on NYSE, Ending Conglomerate

General Electric, a long-standing emblem of American manufacturing with a rich history, is formally ceasing operations as a huge multinational. The Boston-based company, which makes everything from light bulbs to jet engines, has finalized its split into three different companies, and its aerospace and energy operations will begin trading on the New York Stock Exchange as separate entities on Tuesday.

In November 2021, GE announced that it would split into three firms focused on aviation, energy, and healthcare. At the time, the corporation had already phased out its signature appliances. In 2020, GE discontinued sales of the light bulbs it had been producing since its founding in the late nineteenth century.

GE’s stock became one of the most sought-after on Wall Street during its peak under Jack Welch, one of America’s first CEO “superstars.” Nicknamed “the house that Jack built,” GE consistently outperformed peers and the broader market, thanks in part to GE Capital, its finance arm. During the 1990s, it earned 1,120.6% on investments. During Welch’s tenure as CEO, GE’s revenue soared approximately fivefold, while its value increased thirtyfold.

Nonetheless, the stock began to trail in the summer of 2001, nearing the end of Welch’s tenure.

The GE split represents the culmination of years of pruning by the huge conglomerate, signaling a shift away from a corporate structure that dominated US business for decades.

In a letter to shareholders in February, CEO Larry Culp mentioned GE’s past, noting how CEO Charles Coffin “wrote that the creation of the General Electric Company was ‘largely because of the zeal and hearty co-operation’ of our employees.”

With the separation of its companies complete, Culp stated that it was not the end, but rather the beginning for GE.

“Belief in a better way has propelled this company forward since our earliest days,” he added in an email.

GE Aerospace is the name of GE’s remaining core aircraft business, which is led by CEO Larry Culp. It manufactures jet and turboprop engines and preserves the “GE” logo.

GE Aerospace has an installed base of around 44,000 commercial engines and approximately 26,000 military and defense engines worldwide last year, with adjusted revenue of over $32 billion. It predicts an operating profit of around $10 billion by 2028.

The energy division, which includes GE Renewable Energy, GE Power, GE Digital, and GE Energy Financial Services, is known as GE Vernova. It trades on the NYSE under the ticker symbol “GEV”. GE Vernova now has over 7,000 gas turbines and roughly 55,000 wind turbines deployed. According to the corporation, it contributes to around 30% of global electricity generation.

GE Healthcare provides diagnostic scanners, imaging patents, and software. In January 2023, it began trading on Nasdaq under the ticker code “GEHC”. “With the successful launch of three independent, public companies now complete – today marks a historic final step in the multi-year transformation of GE,” Culp stated in a press release.

In noon trade, GE Aerospace shares rose 2.8%, GE Vernova rose around 3.9%, and GE Healthcare fell roughly 0.7%.