GE Aerospace's Operating Margin Insights for 2025

GE Aerospace's focus on operating margins is critical for investors. With potential growth in LEAP deliveries, the segment's margins may face challenges, but services margins outperforming could signify strong profitability ahead.

Date: 01-02-2025

AI Rating: 7

Earnings Per Share (EPS)
The report does not provide specific EPS data, so no analysis can be done on this metric.

Revenue Growth
GE Aerospace anticipates growth in its commercial engines and services (CES) revenue at a mid-teens percentage rate for 2025, suggesting a positive outlook. In the 2024 quarters, CES revenue showed fluctuations, with Q4 2024 at $7.65 billion, indicating an upward trend over the year.

Net Income
The report does not specify net income figures, thus no net income analysis can be performed.

Profit Margins
The focus is on operating profit margins. For the CES segment, operating profit margins were 23.3% in Q4 2023 and increased to 28.2% in Q4 2024. Management's expectation regarding the 15% to 20% growth in LEAP deliveries is projected to affect these margins negatively, although continuing to maintain margins similar to 2024 would indicate strong performance.

Free Cash Flow (FCF)
No direct information on free cash flow is provided in the report, limiting analysis on this component.

Return on Equity (ROE)
ROE is not mentioned in the report, so no assessment can be made regarding this metric.

Conclusion
Overall, the report presents GE Aerospace's operating margins and revenue growth as critical focal points for investors. The expected challenges in margins due to increased engine deliveries must be balanced against anticipated revenue growth, making monitoring this interplay essential for investment decisions.

Stocks: GE