GE Aerospace Outperforms Expectations in Q4 2024 Earnings Report

The recent earnings report from GE Aerospace shows a significant beat on expectations, indicating strong growth potential. Investors may find reasons to consider purchasing or holding onto the stock as the company looks forward to increased profitability in 2025.

Date: 01-02-2025

AI Rating: 7

Strong Earnings Performance

GE Aerospace's fourth-quarter and full-year 2024 earnings surpassed expectations, positively impacting investor sentiment. The reported operating profit in the commercial engines and services segment was $7.1 billion, exceeding management guidance of $6.6 billion to $6.8 billion. Additionally, the defense and propulsion technologies segment reported $1.1 billion, also above previous guidance.

Earnings Per Share (EPS) and Free Cash Flow (FCF)

Looking ahead, management expects adjusted EPS to be between $5.10 and $5.45 for 2025, a notable increase from $4.60 in 2024. Furthermore, projected FCF is expected to be between $6.3 billion and $6.8 billion, compared to $6.1 billion in 2024. These expectations indicate a solid outlook for profitability.

Long-term Growth Potential

GE Aerospace is anticipated to achieve mid-teens earnings growth, with the potential for further strength in profit margins due to the increase in LEAP engine deliveries and improving service revenues. The joint venture with Safran in producing engines positions GE to sustain competitive advantages in the commercial engine market.

Overall, the company's promising projections and consistent earnings growth could establish it as a favorable investment for those seeking exposure to the aerospace sector.

Stocks: GE