Robust Revenue and Profit Growth
GE Aerospace (NYSE:GE) shares jumped in premarket trading on Thursday after the company reported a 16% year-over-year adjusted revenue increase in the fourth quarter, reaching $9.879 billion. GAAP revenue came in at $10.812 billion, surpassing analyst expectations of $9.604 billion.
GE shares climbed 8.04% to $203.51 in premarket trading on Thursday.
Strong Performance Across Business Segments
Commercial Engines & Services revenue rose 19% Y/Y to $7.650 billion, while Defense & Propulsion Technologies revenue increased 4% Y/Y to $2.523 billion.
Total orders soared 46% Y/Y to $15.5 billion, with Commercial Engines & Services up 50% and Defense & Propulsion Technologies rising 22%.
Profitability and Cash Flow Strengthen
GE Aerospace’s adjusted operating profit margin expanded 450 basis points to 20.1%, leading to an adjusted operating profit of $1.988 billion, a 49% increase from the previous year.
The company posted an adjusted EPS of $1.32, marking a 103% year-over-year surge and beating analyst estimates of $1.04.
Operating cash flow for 2024 stood at $5.8 billion (+26% Y/Y), while adjusted free cash flow rose 28%.
Shareholder Returns and 2025 Outlook
GE Aerospace repurchased over $6 billion in shares during 2024 and announced plans for an additional $7 billion buyback in 2025. The company also plans to raise its dividend by 30%, subject to board approval.
For 2025, GE Aerospace forecasts:
- Low double-digit revenue growth
- Adjusted EPS of $5.10 – $5.45 (vs. $5.22 consensus)
- Adjusted operating profit of $7.8 billion – $8.2 billion
- Adjusted free cash flow of $6.3 billion – $6.8 billion
CEO H. Lawrence Culp, Jr. expressed confidence in continued performance improvements, stating, “We expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion.”
