GE Aviation (NYSE:GE) reported third quarter 2024 adjusted revenue growth of 6% year over year to $8.943 billion and GAAP revenue of $9.84 billion. The consensus among analysts was $9.022 billion.
Total orders increased 28% year over year to $12.6 billion, with Commercial Engines & Services +29% and Defense & Propulsion Technologies +19%.
Revenue by Segment: Commercial Engines & Services $7.0 billion (+8% Y/Y) and Defense & Propulsion Technologies $2.243 billion (+2% Y/Y).
GE Aerospace’s adjusted profit margin rose 150 basis points to 20.3%, with adjusted operating profit of $1.818 billion, up 14% year over year.
“The GE Aerospace team delivered strong results, with demand driving orders up 28%. We grew profits by 25% and produced substantial free cash flow, both largely driven by services. Given the strength of our results and expectations for the fourth quarter, we are increasing our earnings and cash guidance for the year,” said H. Lawrence Culp, chairman and CEO of GE Aerospace.
“While there is still more work to do, we have made significant progress, improving engine deliveries by more than 20% sequentially, while also expanding aftermarket capacity,” Culp added.
Adjusted earnings per share for the quarter were $1.15 (+25% year over year), better than the $1.14 consensus.
GE Aero’s cash flow from operations for the nine months ended September 30, 2024 was $4.49 billion (+34% year-over-year), while adjusted free cash flow increased 31%.
The company repurchased 7.9 million shares for $1.3 billion under the $15 billion buyback program announced in March 2024.
Also read: Aviation stocks face tough questions: Can Boeing, GE and Airbus justify sky-high valuations?
Guidance 2024, revised: GE still expects adjusted sales growth in the high single digits. It now sees adjusted earnings per share of $4.20 – $4.35 (previously $3.95 – $4.20) versus the consensus of $4.25.
The company now expects adjusted operating profit of $6.7 billion – $6.9 billion (previously $6.5 billion – $6.8 billion) and adjusted free cash flow of $5.6 billion – $5.8 billion (previously $5.3 billion – $5.6 billion).
Price promotion: GE shares are trading 4.91% lower at $184.70 premarket at last check Tuesday.
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This article GE Aerospace Q3 Earnings: Orders Rise, Boost Earnings Outlook and More originally appeared on Benzinga.com
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