GE Aerospace Earnings Surpass Estimates in Q4, Surge 103% Y/Y

Core Insights - GE Aerospace reported fourth-quarter 2024 results with revenues and earnings exceeding the Zacks Consensus Estimate [1][2] - The company became a separate public entity in April 2024 after spinning off GE Vernova Inc. [1] Financial Performance - Adjusted earnings were $1.32 per share, surpassing the Zacks Consensus Estimate of$1.03, reflecting a 103% year-over-year increase [2] - Total revenues reached $10.8 billion, a 14$15.5 billion [2] - Adjusted revenues were $9.9 billion, exceeding the consensus estimate of$9.5 billion, marking a 16% year-over-year rise [2] Segment Analysis - Revenues from the Commercial Engines & Services segment increased 19% year over year to $7.7 billion, exceeding the Zacks Consensus Estimate of$7.4 billion, driven by higher shop visit work and increased spare parts [4] - The Defense & Propulsion Technologies segment reported revenues of $2.5 billion, a 4$2.6 billion, with total orders rising 22% to $2.8 billion [5] Cost and Margin Profile - Cost of sales grew 8.1$6.8 billion, while selling, general, and administrative expenses decreased 3.5% to $1.2 billion [6] - Research and development expenses rose 30.1$385 million, with adjusted operating profit increasing 49% to $2 billion, resulting in a margin of 20.1$13.6 billion, down from $15.2 billion at the end of December 2023, while long-term borrowings decreased to$17.2 billion from $19.4 billion [7] - Adjusted free cash flow for 2024 was$6.1 billion, compared to $4.7 billion in the previous year [7] Shareholder Returns - In 2024, GE Aerospace distributed$1 billion in dividends and repurchased shares worth $5.4 billion [8] Future Outlook - For 2025, GE expects adjusted revenues to grow in the low-double-digit range, with operating profit estimated between$7.8 billion and $8.2 billion [9] - Adjusted earnings are projected to be in the range of$5.10 to $5.45 per share, with free cash flow anticipated between$6.3 billion and $6.8 billion [10] - The Commercial Engines & Services segment is expected to see mid-teen revenue growth, while the Defense & Propulsion Technologies segment is projected to grow in the mid to high-single-digit range [11]