What's Going On With GE Aerospace & GE Vernova Stock Today?

GE Aerospace GE disclosed the official launch as an independent public company following the completion of the spin-off of GE Vernova GEV.

GE Aerospace and GE Vernova will ring the opening bell together at the NYSE on April 2, 2024, at 9:30 a.m. ET.

GE Aerospace Chairman and CEO H. Lawrence Culp Jr. said, “With the successful launch of three independent, public companies now complete – today marks a historic final step in the multi-year transformation of GE.”

“Building on a century of learning and carrying forth GE’s legacy of innovation, GE Aerospace moves forward with a strong balance sheet and greater focus to invent the future of flight, lift people up, and bring them home safely.”

Related: Operational Wins For General Electric: Analyst Sees Potential Upside From Vernova Spin-Off And Aerospace Growth

GE Aerospace has an installed base of around 44,000 commercial engines and about 26,000 military and defense engines globally. 

The company generated adjusted revenue of around $32 billion in 2023, with 70% generated by services and engine aftermarket.

At the Investor Day in March, GE Aerospace reaffirmed its 2024 guidance and longer-term financial outlook, expecting an operating profit of $10 billion in 2028. 

Additionally, GE Aerospace expects to return roughly 70%-75% of available funds to shareholders this year.

GE Vernova has an installed base of over 7,000 gas turbines and leading-edge electrification technology and aids in generating approximately 30% of the world’s electricity.

Scott Strazik, CEO of GE Vernova, said, “Our Power, Wind, and Electrification segments provide essential products and services to the electric power industry as we work to meet the growing power demands of economies and deliver electricity that is vital to health, safety, security, and improved quality of life.”

At the Investor Day, GE Vernova provided its outlook of achieving mid-single digit organic revenue growth, 10% adjusted EBITDA margin, and 90%-110% free cash flow conversion by 2028. 

Investors can gain exposure to the stock via TCW Transform Systems ETF NETZ and Invesco Aerospace & Defense ETF PPA.

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