General Electric Company (GE) Q3 2024 earnings summary

Executive summary

• Orders rose 28% year-over-year to $12.6B, reflecting robust demand across commercial and defense segments, and prompting an increase in full-year 2024 earnings and cash flow guidance.

• Revenue increased 6% year-over-year to $9.8B, driven by growth in both services and equipment, with Commercial Engines & Services leading performance.

• Operating profit grew 14% to $1.8B, with profit margin expanding to 19.2%; adjusted EPS rose 25% to $1.15.

• Free cash flow reached $1.8B for the quarter and $4.6B year-to-date, with conversion over 140%.

• Significant investments in MRO, partnerships, and supply chain improvements supported aftermarket capacity and future growth.

Financial highlights

• Adjusted revenue was $8.9B, up 6% year-over-year; nine-month revenue up 8% to $27.9B.

• Operating profit was $1.8B, up 14%; operating margin expanded 150 basis points to 20.3%.

• Adjusted EPS was $1.15, up 25% from prior year; nine-month adjusted EPS up 43% to $3.28.

• Free cash flow was $1.8B for the quarter, up 5% year-over-year; nine-month free cash flow at $4.6B.

• Profit margin improved by 1,560 bps year-over-year to 19.2% (GAAP); cash from operating activities rose 7% to $1.9B.

Outlook and guidance

• Raised full-year 2024 guidance: adjusted EPS $4.20–$4.35, operating profit $6.7B–$6.9B, and free cash flow $5.6B–$5.8B.

• CES revenue expected to grow low double-digits to mid-teens; DPT revenue to grow mid- to high-single digits.

• DPT profit expected at lower end of $1.0B–$1.3B range due to R&D investments and product mix.

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

• Positioned for significant revenue, profit, and free cash flow growth in 2024 and a solid foundation for 2025.