GE(GE) - 2024 Q4 - Annual Results

Financial Performance (Q4 2024) - Total orders for Q4 2024 increased by 46% to $15.5 billion, with total revenue (GAAP) up 14% to $10.8 billion[5] - Profit (GAAP) for Q4 2024 rose by 37% to $2.3 billion, with a profit margin of 21.2%, up 350 basis points[5] - Free cash flow for Q4 2024 increased by 21% to $1.5 billion, with cash from operating activities up 5% to $1.3 billion[5] - Adjusted EPS for Q4 2024 more than doubled to $1.32, up 103%[5] - Total revenue (GAAP) for Q4 2024 was $10,812 million, a 14% increase from $9,456 million in Q4 2023[25] - Adjusted revenue (Non-GAAP) for Q4 2024 was $9,879 million, a 16% increase from $8,547 million in Q4 2023[25] - Operating profit (Non-GAAP) for Q4 2024 was $1,988 million, a 49% increase from $1,335 million in Q4 2023[25] - Operating profit margin (Non-GAAP) for Q4 2024 was 20.1%, up 450 basis points from 15.6% in Q4 2023[25] - Adjusted earnings (Non-GAAP) for Q4 2024 were $1,433 million, up from $718 million in Q4 2023, with EPS increasing from $0.65 to $1.32[30] - Free cash flow (Non-GAAP) for Q4 2024 was $1,517 million, a 21% increase from $1,258 million in Q4 2023[33] - Insurance earnings (net of tax) for Q4 2024 were $379 million, significantly higher than $78 million in Q4 2023[30] Financial Performance (Full Year 2024) - Full-year 2024 total orders grew by 32% to $50.3 billion, with total revenue (GAAP) up 9% to $38.7 billion[5] - Full-year 2024 profit (GAAP) was $7.6 billion, down 27%, with a profit margin of 19.7%, down 980 basis points[5] - Full-year adjusted EPS increased by 56% to $4.60[5] - Total revenue (GAAP) for the full year 2024 was $38,702 million, a 9% increase from $35,348 million in 2023[25] - Adjusted revenue (Non-GAAP) for the full year 2024 was $35,121 million, a 10% increase from $31,959 million in 2023[25] - Operating profit (Non-GAAP) for the full year 2024 was $7,253 million, a 30% increase from $5,561 million in 2023[25] - Operating profit margin (Non-GAAP) for the full year 2024 was 20.7%, up 330 basis points from 17.4% in 2023[25] - Full-year 2024 Adjusted earnings (Non-GAAP) reached $5,035 million, compared to $3,241 million in 2023, with EPS rising from $2.95 to $4.60[30] - Full-year 2024 Free cash flow (Non-GAAP) totaled $6,089 million, up 28% from $4,744 million in 2023[33] - Full-year 2024 Insurance earnings (net of tax) reached $806 million, compared to $260 million in 2023[30] - Restructuring & other (net of tax) costs for 2024 were $415 million, up from $194 million in 2023[30] - Separation costs (net of tax) for 2024 were $143 million, down from $579 million in 2023[30] Segment Performance - Commercial Engines & Services segment saw Q4 2024 orders increase by 50% to $12.9 billion, with revenue up 19% to $7.7 billion[14] - Defense & Propulsion Technologies segment reported Q4 2024 orders up 22% to $2.8 billion, with revenue growing 4% to $2.5 billion[16] Future Outlook - GE Aerospace expects double-digit revenue and EPS growth in 2025, with free cash flow conversion exceeding 100%[3] - GE Aerospace plans to return $7 billion to shareholders in 2025 through share repurchases and a 30% dividend increase[6] - The company cannot provide a reconciliation of non-GAAP expectations for 2025 Operating profit, Adjusted EPS, and Free cash flow due to uncertainties[35][36][37] Company Metrics and Strategy - GE Aerospace has an installed base of approximately 45,000 commercial and 25,000 military aircraft engines[46] - GE Aerospace employs approximately 53,000 employees globally[46] - GE Aerospace is focused on inventing the future of flight and ensuring safety[46] - The company's 2024 performance stock units and annual executive incentive plan use Adjusted EPS and Free cash flow as key performance metrics[32][34] Risk Factors - The company faces risks related to regulation, government investigations, and legal compliance[47] - Cybersecurity and data security breaches are identified as potential risks for GE Aerospace[47] - Risk factors are detailed in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024[47] - Updates to risk factors will be included in the Annual Report on Form 10-K for the year ended December 31, 2024[47] Balance Sheet Changes - Total assets decreased to $123,140 million in 2024 from $173,300 million in 2023[20] - Total liabilities decreased to $103,576 million in 2024 from $144,695 million in 2023[20]