GE Aerospace released its third 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 the third quarter 2024:
- Total orders of $12.6B, +28%
- Total revenue (GAAP) of $9.8B, +6%; adjusted revenue* $8.9B, +6%
- Profit (GAAP) of $1.9B, Favorable; operating profit* $1.8B, +14%
- Profit margin (GAAP) of 19.2%, +1,560 bps; operating profit margin* 20.3%, +150 bps
- Continuing EPS (GAAP) of $1.56, Favorable; adjusted EPS* $1.15, +25%
- Cash from Operating Activities (GAAP) of $1.9B, +7%; free cash flow* $1.8B, +5%
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, “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.”
Culp continued, "Leveraging FLIGHT DECK we're focused on servicing and delivering our engines faster without compromising safety and quality. While there's more work to do, we made meaningful progress with engine deliveries improving more than 20% sequentially while also expanding aftermarket capacity. Our path forward is clear, and I am confident GE Aerospace is positioned to deliver a solid year in our first year as a standalone company."
In 3Q, GE Aerospace reported another strong quarter, with orders up 28%, adjusted EPS* growth of 25% and $1.8B of free cash flow*, reflecting more than 140% conversion. Adjusted revenue* was up 6% with growth in both services and equipment. Operating profit* was up 14% with margins* expanding 150 bps.
Demand for our services and products remains robust, highlighted by departures up high-single digits year-to-date. This quarter, we made progress with engine deliveries up 22% sequentially, including Commercial up 25% and Defense up 8%, and spare parts growth to support our external network. Using FLIGHT DECK and joint problem solving, at a subset of our top 15 priority sites material input improved 18% sequentially, supporting our deliveries. We’re also accelerating FLIGHT DECK within our operations to remove waste, improve shop visit output and reduce turnaround times, enabling us to deliver over 20% more LEAP shop visits in 3Q year-over-year. Lastly, we continue to expand capacity internally and externally with our third party network inducting a record number of LEAP shop visits in 3Q.
Given our strong year-to-date performance, with profit and cash each up over $1B year-over-year, and our trajectory entering the fourth quarter, we’re raising our guidance for the year:
- Continue to expect revenue growth to be up high-single digits
- Operating profit* in the range of $6.7 to $6.9B
- Adjusted EPS* between $4.20 to $4.35
- Free cash flow* in the range of $5.6 to $5.8B, >100% conversion
In our first year as an independent company, we’re positioned to finish the year strong.
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 third 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.