GE Aerospace (GE) Q4 2024 earnings summary

Executive summary

• Achieved a historic first year as a standalone public company, with strong commercial and defense momentum, major technology milestones, and robust financial performance.

• Orders rose 46% in Q4 and 32% for the full year, with double-digit growth in both services and equipment; revenue up 16% in Q4 and 10% for the year, profit up $1.7B, and free cash flow up $1.3B.

• Significant operational improvements through the Flight Deck lean operating model, supply chain enhancements, and expanded aftermarket capacity.

• Robust demand for services and products, with progress in supply chain and operational integration.

Financial highlights

• Full-year 2024 adjusted revenue $35.1B (up 10%), operating profit $7.3B (up 30%), adjusted EPS $4.60 (up 56%), and free cash flow $6.1B (up 28%); Q4 adjusted revenue $9.9B (up 16%), operating profit $2.0B (up 49%), adjusted EPS $1.32 (up 103%), and free cash flow $1.5B (up 21%).

• Margins expanded 330 bps to 20.7% for the year; Q4 margins up 450 bps to 20.1%.

• Returned over $6B to shareholders, including $5B in share buybacks and a dividend payout of ~30% of net income.

Outlook and guidance

• 2025 guidance: adjusted revenue $38.7B (up 10%), adjusted EPS $5.10–$5.45 (up 15% at midpoint), free cash flow $6.3–$6.8B (>100% FCF conversion), and profit of $7.8–$8.2B.

• CES segment expects mid-teens revenue growth and operating profit $7.6–$7.9B; DPT segment expects mid- to high-single-digit revenue growth and profit of $1.1–$1.3B.

• Share repurchases to increase to $7B and dividend planned to rise by 30%, subject to board approval.