GE Aerospace GE has reported third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.

It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric.

Inside the Headlines

The company’s third-quarter adjusted earnings were $1.15 per share, which beat the Zacks Consensus Estimate of $1.13. The bottom line rose 25% year over year.

Total revenues were $9.84 billion, indicating a year-over-year increase of 6%. Total orders grew 28% on a year-over-year basis to $12.6 billion.

Adjusted revenues were $8.94 billion, marking a year-over-year rise of 6%. However, the metric missed the consensus estimate of $8.97 billion.

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GE Aerospace Price, Consensus and EPS Surprise

GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote

Segmental Discussion

Revenues from the company’s Commercial Engines & Services business jumped 8.4% year over year to $7 billion. The results were driven by robust orders for both services and equipment with strong spare parts demand. Total orders in the segment rose 29% year over year to $9.8 billion.

The Defense & Propulsion Technologies segment’s revenues totaled $2.2 billion, up 1.7% year over year. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment increased 19% year over year to $3 billion.

Margin Profile

GE Aerospace’s cost of sales (comprising costs of equipment and services sold) grew 4% year over year at $6.23 billion. Selling, general and administrative expenses increased 32.9% year over year to $1.33 billion. Research and development expenses totaled $331 million, reflecting a year-over-year rise of 34%.

GE Aerospace’s adjusted operating profit was $1.82 billion, up 14% year over year. The margin was 20.3%, up 150 basis points.

Balance Sheet & Cash Flow

Exiting the third quarter, GE Aerospace had cash, cash equivalents and restricted cash of $13.7 billion compared with $15.2 billion at the end of December 2023. The company’s long-term borrowings were $18.2 billion compared with $19.4 billion at the end of December 2023.

For the first nine months of 2024, the adjusted free cash flow was $4.57 billion compared with $3.49 billion in the year-ago period.

In the first nine months of the year, GE rewarded its shareholders with a dividend payment of $702 million, up 40.1% year over year. The company repurchased 19.6 million shares for $3.3 billion during the same period.