GE Aerospace Q4 Earnings: EPS Beat, Dividend And Stock Buyback Hike, Strong FY25 Outlook And More

GE Aerospace GE shares are trading higher premarket on Thursday after it reported fourth-quarter adjusted revenue growth of 16% year-over-year to $9.879 billion and GAAP revenue of $10.812 billion. The analyst consensus was $9.604 billion.

Commercial Engines & Services revenue was $7.650 billion (+19% Y/Y) and Defense & Propulsion Technologies revenue totaled $2.523 billion (+4% Y/Y).

Total orders increased 46% Y/Y to $15.5 billion, with Commercial Engines & Services +50% Y/Y and Defense & Propulsion Technologies +22% Y/Y.

GE Aerospace’s adjusted operating profit margin expanded 450 bps to 20.1%, with an adjusted operating profit of $1.988 billion, up 49% in the quarter.

Adjusted EPS for the quarter was $1.32 (+103% Y/Y), beating the consensus of $1.04.

GE Aerospace’s cash from operating activities for the fiscal year stood at $5.8 billion (+26%), while adjusted free cash flow rose 28%.

The company repurchased shares worth more than $6 billion in 2024. Also, it disclosed share repurchase plans of $7 billion in 2025, while raising the dividend by 30%, subject to Board approval.

2025 Guidance: GE Aerospace expects adjusted revenue growth in the low double digits and adjusted EPS of $5.10 – 5.45 vs. the $5.22 consensus.

The company expects adjusted operating profit of $7.8 billion – $8.2 billion and adjusted Free Cash Flow of $6.3 billion – $6.8 billion.

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, “Looking to 2025, we expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion. Guided by FLIGHT DECK, our proprietary lean operating model, I’m confident in our ability to accelerate output and deliver for our customers.”

Investors can gain exposure to the stock via TCW Transform Systems ETF NETZand iShares U.S. Aerospace & Defense ETF ITA.

Price Action: GE shares are up 8.04% at $203.51 premarket at the last check Thursday.

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