Revenue Performance - Revenue for Q3 2024 increased 13.2% year-over-year to 1,244.6million,drivenbystrongperformanceincommercialaerospaceandbusinessaviationmarkets[2]−Year−to−daterevenuefortheninemonthsendedSeptember30,2024,was3,827.5 million, a 12.4% increase compared to the prior year[11] - Revenue for the three months ended September 30, 2024, was 1,244,627,anincreaseof13.21,099,441 for the same period in 2023[29] - Revenue from external customers in Engine Services for the three months ended September 30, 2024, was 1,109,804thousand,comparedto976,896 thousand in the same period of 2023, indicating a growth of approximately 13.5%[34] - Total segment revenue for the nine months ended September 30, 2024, reached 3,827,548thousand,comparedto3,827,548 thousand in the same period of 2023[33] Net Income and Profitability - Net income for Q3 2024 was 16.4million,withanetincomemarginof1.316,436, compared to a net loss of 17,933forthesameperiodin2023[29]−NetincomefortheninemonthsendedSeptember30,2024,was25,027 thousand, a significant improvement from a net loss of 30,502thousandinthesameperiodof2023[30]−Thecompanyreportedanetlossof30.5 million for the nine months ended September 30, 2023, compared to a net income of 25.0millionforthesameperiodin2024[37]AdjustedEBITDA−AdjustedEBITDArose26.0168.4 million, with an adjusted EBITDA margin of 13.5%, up 137 basis points compared to the previous year[6] - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for non-cash and non-recurring items, providing a clearer view of operational performance[26] - Segment Adjusted EBITDA for the nine months ended September 30, 2024, was 562,164thousand,reflectingastrongoperationalperformance[33]−AdjustedEBITDAmarginfortheninemonthsendedSeptember30,2023,was12.525.3 million, reflecting continued investment in growth initiatives, including the LEAP-1A/-1B program[6] - The company incurred capital expenditures of (70,422)thousandfortheninemonthsendedSeptember30,2024,comparedto(35,367) thousand in the same period of 2023, reflecting increased investment in growth initiatives[30] Assets and Liabilities - Total assets increased to 6,059,146asofSeptember30,2024,comparedto5,759,402 as of December 31, 2023, reflecting a growth of 5.2%[27] - Total liabilities rose to 4,895,284asofSeptember30,2024,upfrom4,612,690 as of December 31, 2023, indicating an increase of 6.1%[27] - Cash decreased to 51,265asofSeptember30,2024,from57,982 as of December 31, 2023, a decline of 11.8%[27] - Accounts receivable increased to 621,298asofSeptember30,2024,comparedto518,334 as of December 31, 2023, representing a growth of 19.9%[27] Corporate Actions and Strategic Initiatives - The company completed a 1.7billionIPO,generatingnetproceedsofapproximately1.2 billion, which were used to pay down debt[3] - The acquisition of Aero Turbine Inc. was completed for a total purchase price of up to 141.0million,expectedtocontribute25 million of adjusted EBITDA in 2025[14][15] - The company expects annual interest savings of over 130millionfollowingtherefinancingofitscapitalstructurepost−IPO[17]−ThecompanyisfocusingonthebusinesstransformationoftheLEAP1A/1BenginelineandexpandingCFM56capabilities,indicatingastrategicpushtowardsinnovationandmarketexpansion[32]−ThecompanyisexpandingitsCFM56capabilitiesintoDallas,Texas,aspartofitsnewproductindustrializationefforts[35]Expenses−Selling,general,andadministrativeexpensesincreasedto62,895 for the three months ended September 30, 2024, compared to 53,020forthesameperiodin2023,anincreaseof18.557,797 thousand, impacting overall profitability[33] - The company incurred business transformation costs of 5.4millionrelatedtotheLEAPandCFMprojectsduringtheninemonthsendedSeptember30,2023[36]−IntegrationcostsandseverancefortheninemonthsendedSeptember30,2023,totaled2.6 million[37] - Interest expense for the nine months ended September 30, 2023, was $230.5 million, reflecting ongoing debt obligations[36]
