General Electric Company (GE) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with double-digit growth in orders, operating profit, and free cash flow, raising full-year profit and cash guidance.

• Commercial Engines & Services profit rose over 20%, while Defense & Propulsion Technologies profit grew over 70% year-over-year.

• Aftermarket services represent about 70% of revenues, providing recurring and resilient income.

• Addressed supply chain constraints and announced $1B investment over five years to expand MRO facilities.

• Completed the separation of GE Vernova in April 2024; results now reported as discontinued operations.

Financial highlights

• Q2 2024 total revenues were $9.1B, up 4% year-over-year; operating profit reached $1.9B, up 37%, with a margin of 23.1%.

• Adjusted EPS was $1.20, up more than 60% year-over-year; free cash flow was $1.1B, up nearly 20%.

• Orders totaled $11.2B in Q2, up 18% year-over-year; services orders up 31%, equipment orders down 3%.

• Free cash flow for H1 2024 was $2.8B, up from $1.8B in 2023, mainly due to higher net income.

• CES segment profit up 21% to $1.7B; DPT profit up 71% to $344M.

Outlook and guidance

• Raised 2024 guidance: adjusted EPS $3.95–$4.20, operating profit $6.5B–$6.8B, and free cash flow $5.3B–$5.6B.

• Commercial Engines & Services revenue expected to grow low double-digits to mid-teens; DPT revenue to grow mid- to high-single digits.

• Free cash flow conversion expected above 100% for the year.

• Long-term target to grow operating profit to ~$10B by 2028 and generate free cash flow in excess of net income.

• Company remains committed to investing in R&D and returning majority of free cash flow to shareholders.