GE Aerospace (NYSE:GE) shares are trading higher premarket Thursday after reporting fourth-quarter adjusted revenue growth of 16% year-over-year to $9.879 billion and GAAP revenue of $10.812 billion. The analyst consensus was $9.604 billion.
Commercial Engines and Services revenue was $7.650 billion (+19% year-over-year) and Defense and Propulsion Technology revenue totaled $2.523 billion (+4%). over one year).
Total orders increased 46% year-over-year to $15.5 billion, with a 50% year-over-year increase for commercial engines and services and a 22% year-over-year increase for defense technologies and propulsion.
GE Aerospace’s adjusted operating profit margin increased 450 basis points to 20.1%, with adjusted operating profit of $1.988 billion, up 49% in the quarter.
Adjusted EPS for the quarter was $1.32 (+103% YoY), beating the consensus of $1.04.
GE Aerospace’s cash from operating activities for the year was $5.8 billion (+26%), while adjusted free cash flow increased 28%.
The company repurchased shares worth more than $6 billion in 2024. It also disclosed plans to repurchase shares of $7 billion in 2025, while increasing the dividend by 30%, subject to approval of the board of directors.
Guidance 2025: GE Aerospace expects adjusted revenue growth in the low double digits and adjusted EPS of $5.10 to $5.45 versus consensus of $5.22.
The company expects adjusted operating income of $7.8 billion to $8.2 billion and adjusted free cash flow of $6.3 billion to $6.8 billion.
President and CEO of GE Aerospace, H. Laurent CulpJr. said: “Looking ahead to 2025, we expect double-digit revenue and EPS growth with free cash flow conversion above 100%. Guided by FLIGHT DECK, our proprietary Lean operating model, I am confident in our ability to accelerate production and meet our customers’ expectations.
Investors can gain exposure to the stock via ETF TCW Transform Systems (NYSE: NETZ) and iShares US Aerospace & Defense ETF (BATS:ITA).
Price action: Shares of GE are up 8.04% at $203.51 premarket at last check Thursday.
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