GE(US:GE)2025-04-22 10:26Financial Performance - Total revenue for the three months ended March 31, 2025, increased by $1.0 billion, or 11%, to $9.935 billion compared to $8.955 billion in the same period of 2024[16]. - Net income from continuing operations attributable to common shareholders for Q1 2025 was $1.967 billion, an increase of $0.226 billion from $1.741 billion in Q1 2024, with continuing EPS rising to $1.83 from $1.58[18]. - Operating profit for Q1 2025 was $2.1 billion, an increase of $0.6 billion, with an operating profit margin of 23.8%, up 460 basis points from the previous year[18]. - Adjusted net income for Q1 2025 was $1.6 billion, reflecting a $0.6 billion increase due to higher segment profit and reduced operating costs[18]. - Total segment revenue increased by $0.9 billion, or 14%, to $6.977 billion compared to $6.095 billion in the same period of 2024[26]. - Segment profit for the same period rose by $0.5 billion, or 35%, reaching $1.920 billion, up from $1.419 billion in 2024[26]. - Net income for the three months ended March 31, 2025, was $1,972 million, compared to $1,565 million in the same period of 2024, representing a 26% increase[86]. - Adjusted revenue for the three months ended March 31, 2025, was $9.001 billion, an increase of 11.4% from $8.076 billion in 2024[71]. - EPS from continuing operations increased to $1.83 in Q1 2025 from $1.58 in Q1 2024, representing a growth of 15.8%[146]. Revenue and Orders - The backlog of orders (RPO) as of March 31, 2025, increased by $1.0 billion, or 1%, to $172.599 billion from $171.635 billion at the end of 2024[19]. - Services revenue for Q1 2025 rose to $6.347 billion, up from $5.655 billion in Q1 2024, driven by increased spare parts volume and internal shop visit volume[16]. - Significant new deals were announced with major customers, including ANA HOLDINGS ordering over 75 LEAP engines and additional GEnx engines for their Boeing 787s[21]. - Total segment revenue for the three months ended March 31, 2025, was $9,301 million, an increase from $8,408 million in the same period of 2024, representing a growth of 10.6%[183]. - The aggregate amount of contracted revenue allocated to unsatisfied performance obligations as of March 31, 2025, was $172,599 million, with $149,293 million related to services and $23,306 million related to equipment[184]. Cash Flow and Investments - Cash from operating activities was $1.5 billion for the three months ended March 31, 2025, a decrease of $0.1 billion compared to 2024[59]. - Cash used for investing activities was $(0.3) billion for the three months ended March 31, 2025, a decrease of $0.8 billion compared to 2024[60]. - Cash used for financing activities was $(2.3) billion for the three months ended March 31, 2025, an increase of $2.2 billion compared to 2024[61]. - The company repurchased 9.5 million shares for $1.9 billion in the first quarter of 2025, as part of a $15 billion stock repurchase program[51]. - Cash, cash equivalents, and restricted cash totaled $12.4 billion as of March 31, 2025, with $4.3 billion held in the U.S. and $8.1 billion held outside the U.S.[48]. Tax and Financial Ratings - The effective income tax rate for the three months ended March 31, 2025, was 12.6%, compared to 12.3% for the same period in 2024[43]. - Moody's upgraded the company's long-term rating from Baa1 to A3, while S&P upgraded it from BBB+ to A- with a stable outlook[53]. - The adjusted effective income tax rate for Q1 2025 was 17.6%, down from 20.7% in Q1 2024[74]. Research and Development - Research and development expenses increased to $359 million in Q1 2025 from $270 million in Q1 2024, a rise of 33%[83]. - Research and development expenses for the Commercial Engines & Services segment increased to $288 million in Q1 2025 from $201 million in Q1 2024, marking a rise of 43.3%[183]. - Engineering investments increased compared to the prior year, focusing on expanding production capacity and developing technologies for a more efficient future of flight[22]. Liabilities and Assets - Consolidated total borrowings increased by $0.3 billion to $19.6 billion as of March 31, 2025, primarily due to foreign exchange movement[52]. - Total assets as of March 31, 2025, were $124,123 million, a slight increase from $123,140 million at the end of 2024[84]. - Current liabilities increased to $34,941 million in Q1 2025 from $34,392 million in Q1 2024, an increase of 1.6%[84]. - The company reported a net cash outflow from financing activities of $2,284 million in Q1 2025, compared to an outflow of $204 million in Q1 2024[85]. Environmental and Legal Matters - Total reserves related to environmental remediation and worker exposure claims were $2,021 million as of March 31, 2025, slightly up from $2,003 million at December 31, 2024[180]. - The total losses for borrower litigation at Bank BPH were estimated at $2,449 million as of March 31, 2025[96]. - The estimated total losses for borrower litigation at Bank BPH was $2,449 million as of March 31, 2025, slightly down from $2,461 million at December 31, 2024[179]. Other Financial Metrics - Free cash flow (FCF) for Q1 2025 was $1,441 million, down from $1,669 million in Q1 2024, a decrease of 14%[78]. - Total other income decreased to $302 million in Q1 2025 from $1,007 million in Q1 2024, a decline of 70%[150]. - Comprehensive income attributable to the company for Q1 2025 was $2,107 million, compared to $2,086 million in Q1 2024[86].