GE Aerospace (GE) delivered a robust earnings report for the fourth quarter, exceeding Wall Street’s expectations across all major metrics.
The aerospace giant reported sales of $10.8 billion, significantly surpassing analyst projections of $9.5 billion. Earnings per share (EPS) came in at $1.32, outpacing the anticipated $1.04. Operating profit also soared to $1.9 billion, well above the $1.7 billion forecast.
The company attributed its strong performance to sustained demand in its commercial engines and services segments, bolstered by higher shop visits and increased pricing. Full-year revenue reached $38.7 billion, a 9% increase from the previous year, with profit climbing 27% to $7.6 billion. New orders totaled $50 billion, up a remarkable 32% year-over-year, signaling strong momentum heading into 2025.
Tackling Supply Chain Challenges and Accelerating Growth
A critical factor in GE Aerospace’s recent success is its progress in resolving supply chain constraints, which have plagued the aerospace industry since the pandemic. CEO Larry Culp highlighted the company’s strides in overcoming bottlenecks, noting that key suppliers now deliver over 90% of their committed volume, compared to just 50% a year ago.
This improvement has positioned GE Aerospace to meet rising demand for LEAP engines, which power Boeing and Airbus narrowbody jets. Production of LEAP engines is expected to grow by 15% to 20% in 2025, following a 10% decline in 2024. Additionally, the company is working closely with partners like Safran to align with Airbus’s plans to increase A320neo family output to 75 jets per month.
While supply challenges persist, the company’s proactive measures and contingency planning have instilled confidence among investors and analysts. “We’ve obliterated countless constraints in the supply base,” Culp stated, underscoring the operational improvements driving the company’s results.
A critical factor in GE Aerospace’s recent success is its progress in resolving supply chain constraints, which have plagued the aerospace industry since the pandemic. CEO Larry Culp highlighted the company’s strides in overcoming bottlenecks, noting that key suppliers now deliver over 90% of their committed volume, compared to just 50% a year ago.
This improvement has positioned GE Aerospace to meet rising demand for LEAP engines, which power Boeing and Airbus narrowbody jets. Production of LEAP engines is expected to grow by 15% to 20% in 2025, following a 10% decline in 2024. Additionally, the company is working closely with partners like Safran to align with Airbus’s plans to increase A320neo family output to 75 jets per month.
While supply challenges persist, the company’s proactive measures and contingency planning have instilled confidence among investors and analysts. “We’ve obliterated countless constraints in the supply base,” Culp stated, underscoring the operational improvements driving the company’s results.
Shareholder Rewards and Long-Term Outlook
GE Aerospace’s strong performance has also translated into tangible benefits for shareholders. The company announced a $7 billion share repurchase plan, representing approximately 3% of its market cap, alongside a 30% dividend increase. These moves reflect confidence in sustained profitability and robust cash flow generation.
Looking ahead, GE Aerospace projects double-digit revenue and earnings growth in 2025, with EPS guidance ranging from $5.10 to $5.45—slightly above Wall Street estimates. The company also expects continued improvements in free cash flow as it addresses supply constraints and ramps up production.
The stock’s reaction was emphatic. Shares surged 7% to $201.50 in Thursday trading, reaching as high as $207.65 earlier in the session. Over the past 12 months, GE Aerospace stock has gained 80%, outperforming the S&P 500 by more than 50 percentage points.
GE Aerospace’s strong performance has also translated into tangible benefits for shareholders. The company announced a $7 billion share repurchase plan, representing approximately 3% of its market cap, alongside a 30% dividend increase. These moves reflect confidence in sustained profitability and robust cash flow generation.
Looking ahead, GE Aerospace projects double-digit revenue and earnings growth in 2025, with EPS guidance ranging from $5.10 to $5.45—slightly above Wall Street estimates. The company also expects continued improvements in free cash flow as it addresses supply constraints and ramps up production.
The stock’s reaction was emphatic. Shares surged 7% to $201.50 in Thursday trading, reaching as high as $207.65 earlier in the session. Over the past 12 months, GE Aerospace stock has gained 80%, outperforming the S&P 500 by more than 50 percentage points.
A Bright Horizon for GE Aerospace
GE Aerospace’s exceptional fourth-quarter results and optimistic 2025 outlook underscore its leadership in the aerospace industry. With strong demand in commercial and defense segments, a solid order backlog, and improving operational efficiency, the company is well-positioned for sustained growth.
As supply chain conditions improve and aircraft production ramps up, GE Aerospace remains a critical player in the global aerospace ecosystem. For long-term investors seeking exposure to a high-growth industry, GE Aerospace offers an enticing combination of operational excellence and shareholder value.
GE Aerospace’s exceptional fourth-quarter results and optimistic 2025 outlook underscore its leadership in the aerospace industry. With strong demand in commercial and defense segments, a solid order backlog, and improving operational efficiency, the company is well-positioned for sustained growth.
As supply chain conditions improve and aircraft production ramps up, GE Aerospace remains a critical player in the global aerospace ecosystem. For long-term investors seeking exposure to a high-growth industry, GE Aerospace offers an enticing combination of operational excellence and shareholder value.
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