GE Aerospace highlights resilience and growth in first year as standalone company

Overview

GE Aerospace reported strong financial results for the fourth quarter and full year of 2024, with total orders reaching $15.5bn in Q4 and $50.3bn for the full year. The company generated total revenue of $10.8bn in Q4 and $38.7bn for the year, supported by solid operating performance. Full-year operating profit stood at $7.3bn, while free cash flow totaled $6.1bn, reflecting the company’s focus on operational excellence and cash generation. Adjusted EPS for the year came in at $4.60, highlighting GE Aerospace’s ability to deliver consistent value to its stakeholders.

GE Aerospace CEO H. Lawrence Culp, Jr., highlighted the company’s strong finish to 2024: “Our performance capped off a monumental first year as a standalone company. Looking to 2025, we expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion, driven by our FLIGHT DECK operating model.”

Q4 2024 vs. Q4 2023:

• Total orders reached a value of $15.5bn (+46% YoY), driven by robust demand for both commercial and defense products, including significant engine and maintenance agreements.
• Total revenue increased to $10.8bn (+14% YoY), with adjusted revenue at $9.9bn (+16% YoY), boosted by higher commercial engine deliveries.
• Profit rose to $2.3bn (+37% YoY), with adjusted operating profit at $2.0bn (+49% YoY), driven by operational efficiencies, cost reductions, and strong performance in aftermarket services.
• Profit margin (GAAP) reached to 21.2% (+350 bps vs. 2023), with adjusted operating profit margin improving to 20.1% (+450 bps vs. 2023).
• GAAP EPS rose to $1.75 (+62% YoY), while adjusted EPS reached a value of $1.32 (+103% YoY), benefited from higher profitability and disciplined cost management.
• Cash from operating activities (GAAP) reached to $1.3bn (+5% vs. 2023) and free cash flow of $1.5bn (+21% vs. 2023), improved by increased engine shipments and better working capital management.

Full-Year 2024 highlights:

• Total orders have reached a significant level of $50.3bn (+32% YoY), sustained by a record number of new engine orders and long-term service agreements, particularly in the LEAP engine program.
• Total revenue increased to $38.7bn (+9% vs. 2023), with adjusted revenue at $35.1bn (+10% vs. 2023).
• Profit decreased from the previous year to a value of $7.6bn (-27% YoY), but with adjusted operating profit of $7.3bn (+30% YoY).
• Due to the decrease in profit, the profit margin also decreased, from a value of 29.5% to 19.7% (-980 bps vs. 2023).
• GAAP EPS had a value of $6.09 (-27% YoY), impacted by one-time charges and adjustments related to restructuring and special items, while adjusted EPS reflects significant growth to $4.60 (+56% YoY).
• Free cash flow rose to $6.1bn (+28% YoY), driven by operational efficiency and revenue growth.

Looking towards 2025, GE Aerospace anticipates double-digit growth in both revenue and EPS for this year, targeting adjusted revenue growth of 10%, adjusted EPS in the range of $5.10 to $5.45, and free cash flow between $6.3bn and $6.8bn.

Immediately after the publication of the results report, GE shares rose by approximately 6% in the pre-market, after which the price stabilized until the end of the day around $200.

Author: Ionuț-Adrian Lazar