GE Aerospace released its second quarter 2024 financial results today. We encourage you to read the full materials and listen to our earnings call at 7:30 AM EDT.
Key highlights of GE Aerospace’s performance for second quarter 2024:
• Total orders of $11.2B, +18%
• Total revenue (GAAP) of $9.1B, +4%; adjusted revenue* $8.2B, +4%
• Profit (GAAP) of $1.4B, (4)%; operating profit* $1.9B, +37%
• Profit margin (GAAP) of 15.9%, (130) bps; operating profit margin* 23.1%, +560 bps
• Continuing EPS (GAAP) of $1.20, +$0.11; adjusted EPS* $1.20, +$0.46
• Cash from Operating Activities (GAAP) of $1.0B, +$0.2B; free cash flow* $1.1B, +$0.2B
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, "The GE Aerospace team delivered another strong quarter marked by double-digit increases across orders, operating profit, and free cash flow. Given our performance year-to-date and momentum across our businesses we are raising our full-year profit and free cash flow guidance.”
Culp continued, “We are accelerating our actions and leveraging FLIGHT DECK to unlock supply constraints and fully meet customer demand. I am confident that advancing our strategic priorities for today, tomorrow and the future, will enable us to meet the needs of our customers and create exceptional value for shareholders."
In 2Q, GE Aerospace delivered another solid quarter. Orders were up 18% and adjusted revenue* increased 4% with revenue growth in both segments. Operating profit* was up 37% with margins* expanding 560 bps, supporting adjusted EPS* growth of more than 50% to $1.20. Halfway through the year, we’re well positioned, with earnings and free cash flow* both up over50% year-over-year, and free cash flow* conversion of nearly 120%.
We remain focused on delivering for our airline and airframer customers who need more of our products and services. In the quarter, revenue was impacted by lower output. We continued to execute on our action plan at our top 15 supplier sites, which as we shared last quarter, make up ~80% of our material input shortages. We've deployed more than 550 of our engineering and supply chain resources into the supply base using FLIGHT DECK, leading to meaningful progress at a two-thirds of these supplier sites. We are encouraged by our progress and confident that in the second half, we'll increase engine deliveries significantly, and continue to grow shop visits in support of our customers.
Given our strong results and momentum in our businesses, we are raising our operating profit*, adjusted EPS*, and FCF* guidance:
• Revenue growth is expected to be up high-single digits
• Operating profit* in the range of $6.5 to $6.8B
• Adjusted EPS* between $3.95 to $4.20
• Free cash flow* in the range of $5.3 to $5.6B
All in, GE Aerospace is positioned for significant profit and free cash flow growth in 2024. This continued profit and free cash flow* growth, combined with returning approximately $25B of available cash to shareholders will continue to compound returns.
Thank you for your continued interest in GE Aerospace,
The Investor Relations Team
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our quarterly report on Form 10-Q and second quarter earnings release.
This document contains "forward-looking statements." For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see here.