GE Aerospace Q3 Earnings: Orders Surge, Lifts Earnings Outlook & More

GE Aerospace GE reported third-quarter 2024 adjusted revenue growth of 6% year-over-year to $8.943 billion and GAAP revenue of $9.84 billion. The analyst consensus was $9.022 billion.

Total orders increased 28% year-over-year to $12.6 billion, with Commercial Engines & Services +29% and Defense & Propulsion Technologies +19%.

Revenues by segments: Commercial Engines & Services $7.0 billion (+8% Y/Y) and Defense & Propulsion Technologies $2.243 billion (+2% Y/Y).

GE Aerospace’s adjusted profit margin expanded 150 bps to 20.3%, with an adjusted operating profit of $1.818 billion, up 14% year-over-year.

“The GE Aerospace team delivered strong results, with demand driving orders up 28%. We grew earnings 25% and produced substantial free cash flow, both largely driven by services. Given the strength of our results and 4Q expectations, we’re raising our earnings and cash guidance for the year,” commented GE Aerospace Chairman and CEO H. Lawrence Culp, Jr.

“While there’s more work to do, we made meaningful progress with engine deliveries improving more than 20% sequentially while also expanding aftermarket capacity,” Culp added.

Adjusted EPS for the quarter was $1.15 (+25% Y/Y), beating the consensus of $1.14.

GE Aero’s cash from operating activities for the nine months ended September 30, 2024, stood at $4.49 billion (+34% Y/Y), while adjusted free cash flow rose 31%.

The company repurchased 7.9 million shares for $1.3 billion under the $15 billion repurchase program announced in March 2024.

Also Read: Aerospace Stocks Face Tough Questions: Can Boeing, GE, Airbus Justify Sky-High Valuations?

2024 Guidance, revised: GE still expects Adjusted revenue growth in the high single digits. It now sees Adjusted EPS of $4.20 – $4.35 (prior $3.95 – $4.20) vs. the $4.25 consensus.

The company now expects adjusted operating profit of $6.7 billion – $6.9 billion (prior $6.5 billion – $6.8 billion) and adjusted Free Cash Flow of $5.6 billion – $5.8 billion (prior $5.3 billion – $5.6 billion)

Price Action: GE shares are trading lower by 4.91% at $184.70 premarket at the last check Tuesday.