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GE Aerospace GE has reported fourth-quarter 2024 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate.
It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric.
Inside GE’s Headlines
The company’s fourth-quarter adjusted earnings were $1.32 per share, which beat the Zacks Consensus Estimate of $1.03. The bottom line rose 103% year over year.
Total revenues were $10.8 billion, indicating a year-over-year increase of 14%. Total orders grew 46% on a year-over-year basis to $15.5 billion.
Adjusted revenues were $9.9 billion, marking a year-over-year rise of 16%. The metric beat the consensus estimate of $9.5 billion.
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GE’s Segmental Discussion
Revenues from the company’s Commercial Engines & Services business jumped 19% year over year to $7.7 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $7.4 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 50% year over year to $12.9 billion.
The Defense & Propulsion Technologies segment’s revenues totaled $2.5 billion, up 4% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.6 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment increased 22% year over year to $2.8 billion.
GE Aerospace Price, Consensus and EPS Surprise
GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote
GE’s Margin Profile
GE Aerospace’s cost of sales (comprising costs of equipment and services sold) grew 8.1% year over year at $6.8 billion. Selling, general and administrative expenses decreased 3.5% year over year to $1.2 billion. Research and development expenses totaled $385 million, reflecting a year-over-year rise of 30.1%.
GE Aerospace’s adjusted operating profit was $2 billion, up 49% year over year. The margin was 20.1%, up 450 basis points.
GE Aerospace’s Balance Sheet & Cash Flow
Exiting the fourth quarter, GE Aerospace had cash, cash equivalents and restricted cash of $13.6 billion compared with $15.2 billion at the end of December 2023. The company’s long-term borrowings were $17.2 billion compared with $19.4 billion at the end of December 2023.
For 2024, the adjusted free cash flow was $6.1 billion compared with $4.7 billion in the year-ago period.
In 2024, GE rewarded its shareholders with a dividend payment of $1 billion. The company repurchased shares for $5.4 billion during the same period.