Larry Culp Led GE Turnaround, Tripling Market Value

Larry Culp, upon becoming CEO of General Electric (GE) in 2018, inherited a company teetering on the brink of collapse, with its market capitalization at just $96 billion, over 80% down from its peak.

Culp initiated a comprehensive turnaround strategy that involved reducing a substantial debt load and fundamentally retooling GE's operations. A key element of this strategy was the radical restructuring of the conglomerate into three distinct, publicly traded entities. This separation began with the spinoff of GE HealthCare in early 2023, followed by the separation of GE Vernova (its power franchise) and GE Aerospace in April 2024. Culp subsequently transitioned to lead GE Aerospace, the company's historical core business.

Under Culp's leadership, the combined market valuations of the three spun-off companies have reached $689 billion. This valuation places the combined entities among the top industrial companies in the U.S. by market value, ranking second only to Tesla, which has a market capitalization of $1.5 trillion. The trio collectively surpasses the market value of established companies such as Visa, Johnson & Johnson, and ExxonMobil.

Since Culp's tenure began, the three GE entities have collectively achieved annualized returns of approximately 30%. This performance is double the annualized returns of the broader market, underscoring the success of Culp's strategic overhaul and the subsequent performance of the independent companies.