GE(GE)2025-02-03 11:31Revenue and Financial Performance - Total revenue for the year ended December 31, 2024, increased by 38.7 billion compared to 2023[45]. - Equipment revenue rose to 9.3 billion in 2023, driven by improved pricing and favorable customer mix[45]. - Services revenue increased to 2.2 billion, or 9.7%, primarily due to higher spare parts volume and improved pricing[45]. - Continuing earnings attributable to common shareholders decreased to 9.2 billion in 2023, reflecting a decrease in gains on ownership interests[47]. - Total Remaining Performance Obligation (RPO) increased by 171.6 billion as of December 31, 2024, driven by contract modifications and equipment orders[54]. - Segment revenue for Commercial Engines & Services increased by 26.9 billion in 2024, with segment profit rising by 0.5 billion, or 6%, to 0.2 billion, or 17%[72]. - Corporate & Other revenue for 2024 was 2.532 billion in 2023, while operating profit decreased significantly by 35,121 million, an increase from 38,702 million[171]. - Operating profit for 2024 was 5,561 million and 17.4% in 2023[171]. - Free cash flow (FCF) was 4.7 billion in 2023, driven by higher net income and lower income tax payments[124]. - Cash flows from operating activities (GAAP) increased to 4,609 million in 2023, reflecting a 26.2% growth[178]. Research and Development - GE Aerospace's total research and development (R&D) funding reached 2,476 million in 2023[28]. - Customer and partner funding for R&D was 1,465 million in 2023[28]. - GE Aerospace funded R&D internally at 1,011 million in 2023[28]. - The company is making significant investments in the RISE program suite of technologies aimed at enabling a more sustainable future of flight[26]. Workforce and Human Capital - At December 31, 2024, GE Aerospace employed approximately 53,000 people, with around 28,000 based in the United States[24]. - The company has a strong focus on human capital management, aligning workforce development with business strategy to support operational and financial results[23]. - The company has approximately 3,700 union-represented manufacturing and service employees in the U.S., with collective bargaining agreements set to expire between June and August of 2025[25]. - GE Aerospace's annual bonus program includes a modifier based on the company's safety performance, reflecting a commitment to workforce health and safety[25]. - GE Aerospace's leadership development programs in 2024 focused on elevating high-potential talent and supporting succession planning[25]. - The company maintains a culture of fairness, with men and women performing similar work paid within 1% of each other[25]. Supply Chain and Operational Challenges - GE Aerospace's supply chain is complex and relies on global suppliers, with strategies in place to ensure continuity of supply amid a supply-constrained environment[30]. - The company is investing in manufacturing and supply chain to mitigate disruptions caused by material availability and inflationary pressures[43]. - The company expects continued impacts from supply chain constraints and inflation, and is taking actions to mitigate these effects[43]. - Supply chain constraints and disruptions pose ongoing challenges for GE Aerospace, impacting the availability of parts and services[194]. Market and Competitive Environment - The company faces significant competition in the aerospace market, with competitors offering substantial discounts and financial incentives to secure contracts[31]. - Global economic conditions, geopolitical risks, and inflationary pressures can adversely affect GE Aerospace's financial performance and growth, particularly due to its significant revenue from international markets[193]. - The commercial aviation sector's cyclical nature impacts GE Aerospace's financial performance, with demand influenced by factors such as traffic levels, fuel prices, and airline consolidation[194]. - Changes in U.S. government defense spending and policies can significantly impact GE Aerospace's defense business and growth prospects[198]. - The lengthy research and development cycles for new products make it difficult for the company to predict future economic conditions and competitive dynamics[195]. Financial Position and Cash Management - Total cash, cash equivalents, and restricted cash amounted to 4.4 billion held in the U.S. and 19.3 billion at December 31, 2024, from 1.2 billion[110]. - Cash used for financing activities was 3.9 billion compared to 2023, primarily due to lower net debt maturities and an increase in cash received from stock option exercises[122]. - The company authorized a share repurchase program of up to 4.9 billion from April 2024 through December 31, 2024[109]. - The company retained a 19.9% stake in GE HealthCare upon its spin-off and received total proceeds of $5.2 billion from the sale of its remaining shares[107]. Risks and Regulatory Environment - The company is subject to extensive procurement regulations for government contracts, which can increase compliance costs and affect financial results if not adhered to[198]. - Climate change regulations and customer demand for lower emission technologies may increase operational costs and require investments in sustainable aviation technologies[200]. - The recent spin-offs of GE HealthCare and GE Vernova carry risks of being deemed taxable transactions, which could result in significant tax liabilities for the company and its shareholders[203]. - The intellectual property portfolio may not adequately protect against competition, and enforcement challenges could arise, impacting the company's competitive position and R&D investments[205]. - Operational risks include product safety, supply chain disruptions, and cybersecurity threats, which could adversely affect business operations and financial performance[206].