GE Aerospace Reports Strong First Quarter 2024
Post-spin-off GE Aerospace reported impressive financial results for the first quarter of 2024, indicating continued growth and momentum. The company’s adjusted revenue grew 15% year-over-year to $8.1 billion, while orders surged 34% to $11 billion. This growth was driven by increased orders in Commercial Engines & Services and Defense & Propulsion Technologies, along with pricing adjustments, spare parts volume increases, and higher deliveries in widebody and defense sectors.
Consolidated Revenue and Earnings
Consolidated revenue, including GE Aerospace and GE Vernova Inc. (GEV), grew 11% year-over-year to $16.1 billion and on an adjusted basis, +10% to $15.2 billion. Total orders increased 14% to $20.1 billion. GE Aerospace’s profit margin expanded 140 bps to 19.1%, while the consolidated adjusted profit margin stood at 10.2%, up 380 bps.
Outlook and Guidance
GE Aerospace remains optimistic about the rest of the year, forecasting adjusted revenue growth in low double digits. The company projects operating profit in the range of $6.2 billion-$6.6 billion, adjusted EPS of $3.80-$4.05, and Free Cash Flow exceeding $5 billion with a conversion rate of over 100%.
Other Highlights
GE completed the separation of GE Vernova on April 2 and received proceeds of $2.6 billion from the monetization of a portion of its shares in GE HealthCare Technologies Inc. (GEHC). The company also repurchased ~1.1 million shares for $0.1 billion under a previously authorized $3 billion share repurchase program.
Stock Performance
In response to the positive financial performance, GE shares are trading higher by 4.4% at $156.80 premarket. This indicates investor confidence in GE Aerospace’s future prospects and the company’s ability to drive profitable growth.
