01/23/2025 | Press release | Distributed by Public on 01/23/2025 05:23
Strong fourth quarter, expects another year of substantial growth in 2025
Fourth quarter 2024:
Full year 2024:
CINCINNATI - January 23, 2025 - GE Aerospace (NYSE:GE) announced results today for the fourth quarter and full year ending December 31, 2024.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, "GE Aerospace delivered a strong finish to 2024 given robust demand for our services and products with fourth quarter orders up 46%, EPS more than doubling, and free cash flow increasing over 20%. Our performance capped off a monumental first year as a standalone company with $1.7 billion of profit growth and $1.3 billion of free cash flow growth."
Culp continued, "Looking to 2025, we expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion. Guided by FLIGHT DECK, our proprietary lean operating model, I'm confident in our ability to accelerate output and deliver for our customers."
GE Aerospace's key highlights included:
Returned more than $6 billion to shareholders in 2024, and today, announced share repurchase plans of $7 billion in 2025, while increasing the dividend by 30%, subject to Board approval.
For the quarter, orders of $12.9 billion increased 50%, with growth in both services and equipment. Revenue of $7.7 billion was up 19% with services growing 12% driven by expanded shop visit workscope, higher spare parts, and price. Equipment revenue grew 38%, as engine and customer mix, in addition to price, more than offset lower units. Profit of $2.2 billion was up 44%, from spare parts volume, increased shop visit workscope, mix, and price more than offsetting inflation and investments. Margins expanded 490 basis points.
For the year, Commercial Engines & Services orders were up 38%, revenue increased 13%, and profit grew 25%, while margins expanded 250 basis points.
For the quarter, orders of $2.8 billion were up 22%, primarily driven by Defense & Systems. Revenue of $2.5 billion grew 4%, led by Defense & Systems, which was up 6% from higher Defense deliveries and price, partially offset by lower services. Propulsion & Additive Technologies revenue grew 2%. Profit of $241 million was up 2% as price and productivity were partially offset by next-generation engine investments and inflation. Margins were down (20) basis points.
For the year, Defense & Propulsion Technologies orders were up 10%, revenue increased 6%, and profit grew 17%, while margins expanded 110 basis points.
Financial Measures That Supplement GAAP
We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business.
In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenue, specifically Adjusted revenue, (2) profit, specifically Operating profit and Operating profit margin; Adjusted earnings (loss) and Adjusted earnings (loss) per share (EPS), (3) cash flows, specifically free cash flow (FCF), and (4) guidance, specifically 2025 Operating profit, 2025 Adjusted EPS and 2025 FCF.
The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.
2025 GUIDANCE: 2025 OPERATING PROFIT (NON-GAAP)
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Operating profit* in 2025 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.
2025 GUIDANCE: 2025 ADJUSTED EPS (NON-GAAP)
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS* in 2025 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.
2025 GUIDANCE: 2025 FCF (NON-GAAP)
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for free cash flow* in 2025 without unreasonable effort due to the uncertainty of timing for separation and restructuring related cash expenditures.
Caution Concerning Forward Looking Statements:
This release and certain of our public communications and filings we make with the U.S. Securities and Exchange Commission (SEC) may contain statements related to future, not past, events. These forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "preliminary," or "range." Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the impacts of macroeconomic and market conditions and volatility on our business operations, financial results and financial position; conditions affecting the aerospace and defense industry, including our customers and suppliers; our expected financial performance, including cash flows, revenue, margins, earnings and earnings per share; planned and potential transactions; our credit ratings and outlooks; our funding and liquidity; our cost structures and plans to reduce costs; restructuring, impairment or other financial charges; or tax rates.
For us, particular areas where risks or uncertainties could cause our actual results to be materially different than those expressed in our forward-looking statements include:
These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
Additional Information
CFM International is a 50/50 JV that produces CFM56 and LEAP engine families. RISE is a program of CFM International. CFM RISE is a registered trademark. Engine Alliance is a 50/50 JV that produces the GP7200 engine.
GE Aerospace's Investor Relations website at www.geaerospace.com/investor-relations, as well as GE Aerospace's LinkedIn and other social media accounts, contain a significant amount of information about GE Aerospace, including financial and other information for investors. GE Aerospace encourages investors to visit these websites from time to time, as information is updated and new information is posted.
Additional financial information can be found on the Company's website at: www.geaerospace.com/investor-relations under Events and Reports.
Conference Call and Webcast
GE Aerospace will discuss its results during its investor conference call today starting at 7:30 a.m. ET. The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation containing financial information can be accessed by visiting the Events and Reports page on GE Aerospace's website at: www.geaerospace.com/investor-relations. An archived version of the webcast will be available on the website after the call.
About GE Aerospace
GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 45,000 commercial and 25,000 military aircraft engines. With a global team of approximately 53,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow and the future at www.geaerospace.com.
GE Aerospace Investor Contact:
Blaire Shoor, 857.472.9659
[email protected]
GE Aerospace Media Contact:
Nicole Sizemore, 203.945.9783
[email protected]