GE Aerospace Soars on Impressive Q4 Earnings
Revenue Growth Exceeds Expectations
GE Aerospace (NYSE:GE) shares surged in premarket trading on Thursday, driven by the company’s impressive fourth-quarter earnings report. Adjusted revenue grew 16% year-over-year to $9.879 billion, surpassing the analyst consensus of $9.604 billion. GAAP revenue reached $10.812 billion, demonstrating the company’s strong financial performance.
Segment Performance
Commercial Engines & Services led the way, with revenue increasing 19% year-over-year to $7.650 billion. Defense & Propulsion Technologies also saw growth, with revenue rising 4% year-over-year to $2.523 billion. Total orders skyrocketed 46% year-over-year to $15.5 billion, with Commercial Engines & Services and Defense & Propulsion Technologies experiencing 50% and 22% growth, respectively.
Profitability and Cash Flow
GE Aerospace’s adjusted operating profit margin expanded 450 basis points to 20.1%, resulting in an adjusted operating profit of $1.988 billion, up 49% in the quarter. Adjusted EPS for the quarter was $1.32, a 103% increase year-over-year, beating the consensus of $1.04. The company’s cash from operating activities for the fiscal year stood at $5.8 billion, a 26% increase, while adjusted free cash flow rose 28%.
Share Repurchases and Dividend Hike
GE Aerospace repurchased shares worth more than $6 billion in 2024 and announced plans to repurchase an additional $7 billion in 2025, subject to Board approval. The company also raised its dividend by 30%, demonstrating its commitment to returning value to shareholders.
2025 Guidance
Looking ahead, GE Aerospace expects adjusted revenue growth in the low double digits and adjusted EPS of $5.10 – 5.45, exceeding the $5.22 consensus. The company anticipates adjusted operating profit of $7.8 billion – $8.2 billion and adjusted free cash flow of $6.3 billion – $6.8 billion.
CEO Confidence
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. expressed confidence in the company’s ability to accelerate output and deliver for its customers, guided by its proprietary lean operating model, FLIGHT DECK.
Investor Opportunities
Investors can gain exposure to GE Aerospace through the TCW Transform Systems ETF (NYSE:NETZ) and iShares U.S. Aerospace & Defense ETF (BATS:ITA).
Price Action
GE shares surged 8.04% to $203.51 premarket on Thursday, reflecting the market’s positive response to the company’s strong earnings report.
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