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GE Aerospace Releases Its 1Q’24 Results

April 23, 2024 | by Steve Winoker

GE Aerospace released its first quarter 2024 financial results on both a consolidated GE and standalone GE Aerospace basis today. I encourage you to read the full materials and listen to our earnings call at 7:30 AM ET.
Key highlights of GE’s performance for first quarter 2024 (including GE Aerospace and GE Vernova):

  • Total orders of $20.1B, +14%; organic orders +14%
  • Total revenue (GAAP) of $16.1B, +11%; adjusted revenue* $15.2B, +10% organically*
  • Profit margin (GAAP) of 11.6%, +(3,320) bps; adjusted profit margin* 10.2%, +300 bps organically*
  • Continuing EPS (GAAP) of $1.38, $(4.18); adjusted EPS* $0.82, +$0.55
  • Cash from Operating Activities (GAAP) of $1.0B, +$0.9B; free cash flow* $0.9B, +$0.7B

Key highlights of GE Aerospace’s performance for first quarter 2024 (on a standalone basis)1:

  • Total orders of $11.0B, +34%
  • Adjusted revenue* $8.1B, +15%
  • Adjusted operating profit*$1.5B, +24%
  • Adjusted operating profit margin* 19.1%, +140 bps
  • Free cash flow* $1.7B, +$0.8B 

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, "We marked a new beginning in early April with the successful spin-off of GE Vernova and launch of GE Aerospace, completing our multi-year transformation. Our teams achieved this milestone while delivering strong results in the first quarter led by significant profit and cash growth at GE Aerospace."
Culp continued, "At GE Aerospace, Commercial Engines & Services and Defense & Propulsion Technologies drove double-digit revenue, profit and free cash flow growth in the quarter. Given our solid start to the year and outlook for the remainder of 2024, we are raising our full-year profit and free cash flow guidance. Moving forward as a focused global aerospace leader, we will continue to prioritize safety, quality, delivery, and cost — always in that order —  while also investing in our future and driving long term profitable growth." 
GE delivered a strong last quarter as a combined company, reflecting great momentum in both GE Aerospace and GE Vernova. In 1Q, orders were up substantially and revenue improved with all segments contributing to growth. Adjusted operating profit* was up more than 50% with 300 basis points of organic margin expansion*. Adjusted EPS* was up more than 3 times and free cash flow* (FCF*) was up more than 5 times. 
GE Aerospace had a solid start to the year with double-digit growth across orders, revenue and operating profit, and free cash flow* doubling year-over-year. Orders grew 34% and revenue grew 15% from pricing, spare parts volume, and increasing deliveries in widebody and Defense. Operating profit* was $1.5 billion, up 24% with both Commercial Engines & Services and Defense & Propulsion Technologies delivering double-digit profit improvement. Operating profit margins* of 19.1% expanded 140 basis points primarily driven by pricing, services volume and favorable mix.
For Commercial Engines & Services, orders grew 34% and revenue was up 16% with services +12%, and equipment +31%. In Defense & Propulsion Technologies, orders were up 34%. Revenue increased 18%, driven by growth in deliveries, pricing and classified programs.
As more people fly, and fly more often, we're experiencing a tremendous demand cycle. With FLIGHT DECK, our proprietary lean operating model, we're delivering for our customers while maintaining the highest standards of safety and quality, with greater predictability and speed. However, we continue to face material availability challenges impacting our deliveries and we have intensified our efforts working with suppliers to problem solve these issues. At the same time, we remain focused on advancing the technology building blocks to define the future of flight.
The strength of our operational and financial fundamentals gives us the confidence in the capital allocation framework we laid out at Investor Day, including returning 70% to 75% of our available cash to investors through dividends and our newly authorized $15 billion buy-back program. And we are already taking action, initiating a quarterly dividend of $0.28, a 250% increase. Overall, GE Aerospace is well-positioned to create significant shareholder value while investing in growth and innovation.
Based on GE Aerospace's strong start and constructive outlook for the rest of the year, we are updating our full-year and business-specific guidance, and expect: 

  • Low-double-digit adjusted revenue* growth, operating profit* of $6.2 to $6.6 billion, up from $6.0 to $6.5 billion, adjusted EPS* of $3.80 to $4.05, and free cash flow* of greater than $5 billion with over 100% conversion.  

As a reminder, this is the final quarter that we will report GE's consolidated results and beginning in the second quarter of 2024, GE Aerospace will present Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT) as our reporting segments.
We couldn’t be more excited about our path ahead as a standalone company, and we thank you for your continued interest in GE Aerospace. As always, we welcome your feedback.
Steve & team
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our quarterly report on Form 10-Q and first quarter earnings release. 
This document contains "forward-looking statements." For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see here.