GE Aerospace (GE) reported second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.It’s 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 HeadlinesThe company’s second-quarter adjusted earnings were $1.20 per share, which beat the Zacks Consensus Estimate of 97 cents. The bottom line surged 62.2% year over year.Total revenues were $9.09 ...

Strong aftermarket demand is pushing earnings higher.GE Aerospace (GE 7.13%) reported a stronger-than-expected quarter thanks to continued strong demand for airplane and engine spare parts. Investors are taking notice, sending shares of GE Aerospace up 8% as of noon ET.Strong pricing leads to an earnings beatGE Aerospace is the last vestige of onetime conglomerate General Electric. The company is a leading manufacturer of aircraft engines and other equipment.The company earned $1.20 per share in the second ...

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining more than 100 points on Tuesday.The Dow traded up 0.09% to 40,452.70 while the NASDAQ rose 0.62% to 18,119.84. The S&P 500 also rose, gaining, 0.32% to 5,582.32.Check This Out: How To Earn $500 A Month From Alphabet Stock Ahead Of Q2 Earnings ReportLeading and Lagging SectorsConsumer discretionary shares jumped by 1% on Tuesday.In trading on Tuesday, energy shares fell by 1.4%.Top HeadlineGE Aerospace GE reported better-than ...

Manjit Bains /iStock via Getty Images Introduction I'm not breaking any news when I say that I have started to really like GE Aerospace (NYSE:GE), a company I have increasingly covered since last year, when it was still General Electric. After two major spin-offs, the company is now a pure-play aerospace company, which comes with massive benefits in a world where both commercial and defense demand is booming. My most recent article was written on June 6, when I went with the title “Moat Monster: GE Aero ...

Financial Data and Key Metrics - Revenue impacted by lower output, but operating profit and free cash flow grew double-digit [10] - Operating profit was $1.9 billion, up 37% YoY, with operating margins expanding 560 basis points to 23.1% [15] - Adjusted EPS was $1.20, up more than 60% YoY, driven by increased operating profit and lower tax rate [16] - Free cash flow was $1.1 billion, up nearly 20%, driven by higher earnings [16] - Full-year profit and cash guidance raised, with operating profit expected to be $6.5 billion to $6.8 billion [24] Business Line Performance - Commercial Engines & Services (CES) saw profit growth of 21%, driven by 14% internal shop visits growth and improved pricing [10] - Defense & Propulsion Technologies (DPT) delivered profit growth of over 70% YoY, driven by services growth and profit improvement in Propulsion & Additive Technologies [10] - CES services revenue grew 14%, with mid-teens internal shop visit growth and improved pricing [18] - DPT revenue grew 1%, with Propulsion & Additive Technologies growing 16% [21] Market Performance - Air traffic trends remain positive, supporting services growth, with departures up 9% year-to-date [17] - LEAP engine deliveries down 29% due to supply chain constraints, but LEAP-powered Airbus 321XLR certified by EASA [8][18] - Defense sector remains resilient, with U.S. defense spending expected to grow low-single digits and international up mid-single digits [20] Company Strategy and Industry Competition - Focus on FLIGHT DECK operating model to improve safety, quality, delivery, and cost [13] - Investment of $1 billion in MRO facilities over the next five years to increase capacity and reduce turnaround time [14] - CFM RISE program advancing, with Open Fan design showing promise for reducing emissions and improving fuel efficiency [9] - GE Aerospace aims to grow operating profit to approximately $10 billion by 2028 [27] Management Commentary on Operating Environment and Future Outlook - Supply chain constraints remain a challenge, with 80% of material input shortages tied to nine suppliers across 15 sites [11] - Management confident in improving supply chain performance in the second half, with material input growth doubling sequentially in July [12][13] - Strong demand for both new engines and aftermarket services, with orders up 18% and services orders up 36% in CES [15][63] Other Important Information - GE Aerospace completed the sale of Electric Insurance and reached an agreement to sell the licensing business, resulting in proceeds of roughly $700 million [23] - Inventory growth of $1.2 billion in the first half, but free cash flow conversion remained strong at nearly 120% [56] Q&A Session Summary Question: CFM56 shop visits and extended life - CFM56 remains a workhorse of the industry, with utilization consistent YoY and potential for extended shop visits [30][31] - Shop visits for CFM56 expected to plateau at 2025 levels for a couple more years before declining [32] Question: Supplier bottlenecks and progress - Two-thirds of the 15 supplier sites showed strong improvement, with material flow more than doubling sequentially [34] - Management remains focused on resolving constraints at the remaining priority sites [12][35] Question: CES margins and second-half progression - CES margins improved due to strong services growth, pricing, and customer mix, with shop visits skewed towards time and material work [39][40] - Full-year CES profit guidance raised by $150 million to $200 million, with margins expected to remain flattish [41] Question: LEAP shipments and supply chain progress - LEAP shipments down 29% in Q2, but management expects flat to 5% growth for the full year [46] - July showed promising progress, with higher engine output and reduced variability [13][49] Question: Inventory and supply chain strategy - Inventory growth of $1.2 billion in the first half, but pace expected to slow in the second half [55] - Management focused on maintaining a predictable ramp and not penalizing well-performing suppliers [53][54] Question: RISE program and customer interest - RISE program, particularly Open Fan design, continues to gain customer interest, with over 200 hours of wind tunnel tests completed [71][72] - Customer conversations at Farnborough focused on sustainability and SAF compatibility [72] Question: LEAP breakeven timing - LEAP expected to be profitable in 2024 and breakeven in 2025, with services performance tracking better than expected [74] Question: Airline profit warnings and fleet planning - No significant impact on GE Aerospace's business from recent airline profit warnings, with strong demand for services and new engines [67][68]

Key TakeawaysGE Aerospace shares surged Tuesday after the company posted second-quarter earnings that beat analysts' estimates.The aerospace parts maker said orders for its engines and other products rose 18% year-over-year.GE Aerospace also lifted its guidance for the full fiscal year. GE Aerospace (GE) shares jumped over 6% in early trading Tuesday after the company's second-quarter earnings exceeded expectations as orders surged. The aerospace parts maker posted a 4% increase in revenue to $9.1 billion, ...

GE Aerospace second quarter 2024 performance Financial results & company highlights July 23, 2024 Caution concerning forward-looking statements: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see www.geaerospace.com/investo ...

Revenue and Profit Performance - Total revenues for Q2 2024 were $9.1 billion, up $0.3 billion (4%) from the previous year, driven by an increase in Commercial Engines & Services[12] - Adjusted earnings per share for Q2 2024 was $1.20, with a profit margin of 15.9% and operating profit margin of 23.1%[13] - Total revenues for the six months ended June 30, 2024, increased by $1.5 billion (9%) to $18.0 billion, with equipment revenues up due to higher prices and favorable mix, and services revenues up due to increased shop visit volume and spare parts[19] - Continuing earnings for the three months ended June 30, 2024 increased by $0.1 billion to $1.3 billion, driven by a $0.4 billion increase in segment profit and a $0.1 billion decrease in provision for income taxes[20] - Adjusted earnings for the three months ended June 30, 2024 were $1.3 billion, an increase of $0.5 billion, primarily due to a $0.4 billion increase in segment profit and lower Adjusted Corporate & Other operating costs[20] - For the six months ended June 30, 2024, continuing earnings decreased by $4.7 billion, primarily due to a $6.0 billion decrease in gains on retained and sold ownership interests, partially offset by a $0.7 billion increase in segment profit[21] - Total revenues (GAAP) for Q2 2024 were $9.094 billion, a 4% increase compared to $8.755 billion in Q2 2023[76] - Adjusted revenues (Non-GAAP) for Q2 2024 were $8.223 billion, up 4% from $7.907 billion in Q2 2023[76] - Operating profit (Non-GAAP) for Q2 2024 was $1.897 billion, a 37% increase from $1.385 billion in Q2 2023[76] - Operating profit margin (Non-GAAP) improved to 23.1% in Q2 2024, up 560 basis points from 17.5% in Q2 2023[76] - Earnings (loss) from continuing operations (GAAP) for Q2 2024 were $1.320 billion, or $1.20 per share, compared to $1.195 billion, or $1.09 per share, in Q2 2023[78] - Adjusted earnings (Non-GAAP) for Q2 2024 were $1.321 billion, or $1.20 per share, compared to $812 million, or $0.74 per share, in Q2 2023[78] - Total revenues for the three months ended June 30, 2024, were $9,094 million, compared to $8,755 million in the same period in 2023[84] - Net earnings attributable to common shareholders for the three months ended June 30, 2024, were $1,266 million, compared to a loss of $25 million in the same period in 2023[84] - Diluted earnings per share from continuing operations for the three months ended June 30, 2024, were $1.20, compared to $1.09 in the same period in 2023[84] - Net earnings for the six months ended June 30, 2024, were $2.833 billion, compared to $7.518 billion in the same period in 2023[86] - Earnings per share from continuing operations for Q2 2024 increased to $1.20 (diluted) and $1.21 (basic), compared to $1.09 (diluted) and $1.10 (basic) in Q2 2023[148] - Net earnings attributable to common shareholders for Q2 2024 were $1.266 billion, a significant improvement from a net loss of $25 million in Q2 2023[148] - Earnings from continuing operations attributable to common shareholders for Q2 2024 were $1.320 billion, up from $1.195 billion in Q2 2023[177] Cash Flow and Financial Position - Cash flows from operating activities (CFOA) for the six months ended June 30, 2024, were $2.6 billion, up from $1.6 billion in the same period in 2023[14] - Free cash flows (FCF) for the six months ended June 30, 2024, were $2.8 billion, compared to $1.8 billion in the same period in 2023[14] - Total cash, cash equivalents, and restricted cash was $12.1 billion at June 30, 2024, with $5.0 billion held in the U.S. and $7.1 billion held outside the U.S.[54] - The company repurchased 11.7 million shares for $1.9 billion during the three months ended June 30, 2024, under a $15.0 billion share repurchase authorization[59] - Consolidated total borrowings decreased by $0.9 billion to $19.7 billion at June 30, 2024, mainly due to maturities[59] - The company received $2.6 billion from the disposition of 31.1 million shares of GE HealthCare in the first quarter of 2024, with a remaining interest of 30.5 million shares as of June 30, 2024[58] - Free cash flows (Non-GAAP) for the first six months of 2024 were $2.767 billion, compared to $1.770 billion in the same period of 2023[80] - Cash flows from operating activities (GAAP) for the first six months of 2024 were $2.586 billion, up from $1.564 billion in the same period of 2023[80] - Total assets as of June 30, 2024, were $123,190 million, compared to $173,300 million as of December 31, 2023[85] - Cash, cash equivalents, and restricted cash as of June 30, 2024, were $12,107 million, compared to $15,204 million as of December 31, 2023[85] - Total liabilities as of June 30, 2024, were $104,347 million, compared to $144,695 million as of December 31, 2023[85] - Total shareholders' equity as of June 30, 2024, was $18,598 million, compared to $27,403 million as of December 31, 2023[85] - The company's retained earnings as of June 30, 2024, were $77,349 million, compared to $86,553 million as of December 31, 2023[85] - The company's total equity as of June 30, 2024, was $18,843 million, compared to $28,605 million as of December 31, 2023[85] - Cash from operating activities for the six months ended June 30, 2024, was $1.905 billion, a significant increase from $226 million in 2023[86] - Cash used for investing activities for the six months ended June 30, 2024, was $3.478 billion, compared to $171 million in 2023[86] - Cash used for financing activities for the six months ended June 30, 2024, was $3.092 billion, compared to $4.394 billion in 2023[86] - Comprehensive income for the six months ended June 30, 2024, was $4.931 billion, compared to $6.212 billion in 2023[87] - The company's cash, cash equivalents, and restricted cash at June 30, 2024, were $14.947 billion, compared to $14.832 billion in 2023[86] - The company's total equity balance at June 30, 2024, was $18.843 billion, compared to $32.393 billion in 2023[87] - GE Vernova's cash balance on the date of separation was $4,242 million, with GE Aerospace contributing $515 million to fund future operations[94] - GE Aerospace collected net cash of $477 million related to transition services and sales of engines and parts to GE Vernova for the three months ended June 30, 2024[95] - GE Aerospace collected net cash of $157 million related to transition services and other activities with GE HealthCare for the six months ended June 30, 2024[97] - The company repurchased 13.9 million shares for $2,289 million during the three months ended June 30, 2024, and 15.0 million shares for $2,434 million during the six months ended June 30, 2024[147] Segment Performance - Equipment revenues for Q2 2024 decreased to $2.2 billion from $2.5 billion in Q2 2023, primarily due to lower deliveries of new engines[18] - Services revenues for Q2 2024 increased to $6.0 billion from $5.4 billion in Q2 2023, driven by higher internal shop visit volume and prices[18] - Segment revenues for the three months ended June 30, 2024 increased by $0.4 billion (7%) to $6.1 billion, with segment profit up $0.3 billion (21%) to $1.7 billion[29] - Defense & Systems segment revenues for the three months ended June 30, 2024 were $1.5 billion, with segment profit increasing to $344 million and a segment profit margin of 14.3%[38] - Segment revenues increased by 1% and segment profit increased by $0.1 billion (71%) for the three months ended June 30, 2024, driven by growth in Propulsion & Additive Technologies[39] - For the six months ended June 30, 2024, segment revenues increased by $0.4 billion (9%) and segment profit increased by $0.2 billion (49%), with growth in both Defense & Systems and Propulsion & Additive Technologies[41] - Commercial Engines & Services (CES) has a commercial engine fleet in service of approximately 44,000 units, with 13,000 units under long-term service agreements[27] - Total segment revenues for the six months ended June 30, 2024, were $16.941 billion, up from $15.310 billion in 2023[177] - Commercial Engines & Services segment revenue for Q2 2024 was $6.132 billion, a 6.9% increase from $5.737 billion in Q2 2023[177] - Defense & Propulsion Technologies segment revenue for Q2 2024 was $2.401 billion, slightly up from $2.375 billion in Q2 2023[177] - Corporate & Other segment reported a loss of $534 million in Q2 2024, compared to a loss of $84 million in Q2 2023[177] Remaining Performance Obligations (RPO) - Remaining performance obligation (RPO) as of June 30, 2024, increased by $5.8 billion (4%) to $159.8 billion, driven by Commercial Engines & Services and Defense & Propulsion Technologies[16] - The remaining performance obligation as of June 30, 2024, was $159.765 billion, with $19.191 billion related to equipment and $140.574 billion related to services[177] - Equipment-related remaining performance obligation is expected to be 37% satisfied within 1 year, 54% within 2 years, and 74% within 5 years[177] - Services-related remaining performance obligation is expected to be 11% recognized within 1 year, 42% within 5 years, 69% within 10 years, and 85% within 15 years[177] - GE Vernova's remaining performance obligations (RPO) related to GE Aerospace credit support were reduced by over 50% to approximately $29.0 billion as of Q2 2024[74] - Approximately $16 billion of GE Vernova's RPO related to GE Aerospace credit support is expected to mature within five years post-spin-off[74] Corporate and Other Costs - Corporate & Other operating costs increased by $0.5 billion for the three months ended June 30, 2024, primarily due to $0.8 billion of lower gains on retained and sold ownership interests and other equity securities[44] - For the six months ended June 30, 2024, Corporate & Other operating profit decreased by $5.6 billion, mainly due to $6.0 billion of lower gains on retained and sold ownership interests and other equity securities[45] - Adjusted Corporate & Other operating costs decreased by $0.1 billion for both the three and six months ended June 30, 2024, primarily due to a reduction in core functional costs[44][45] - Pre-tax separation costs for Q2 2024 were $75 million, down from $163 million in Q2 2023, as the company completed its spin-off of GE Vernova[154] - The company recognized $216 million of net tax benefit for Q2 2024 related to separation activities, including deferred tax benefits from state tax attributes[154] Tax and Accounting - The effective income tax rate was 8.6% for the three months ended June 30, 2024, compared to 16.8% for the same period in 2023[48] - Adjusted effective income tax rate (Non-GAAP) for Q2 2024 was 20.3%, compared to 24.1% in Q2 2023[78] - The effective income tax rate for the six months ended June 30, 2024, was 10.7%, reduced from the U.S. statutory rate of 21% due to separation income tax benefits and U.S. business tax credit benefits[142] - Net deferred income tax assets were $7,338 million as of June 30, 2024, compared to $7,502 million at the end of 2023[145] - The company is evaluating the impact of new FASB accounting standards on segment reporting and income tax disclosures, effective from fiscal years beginning after December 15, 2024[70][71] Share Repurchases and Investments - The company repurchased 11.7 million shares for $1.9 billion during the three months ended June 30, 2024, under a $15.0 billion share repurchase authorization[59] - The company repurchased 11,700 thousand shares for $1,946 million under the $15 billion share repurchase authorization during the three months ended June 30, 2024[81] - The company repurchased 13.9 million shares for $2,289 million during the three months ended June 30, 2024, and 15.0 million shares for $2,434 million during the six months ended June 30, 2024[147] - The company's investment in GE HealthCare comprises 30.5 million shares (6.7% ownership) as of June 30, 2024, with $2.602 billion received from share dispositions in H1 2024[149] - GE Aerospace held 30.5 million shares (approximately 6.7% ownership interest) in GE HealthCare as of June 30, 2024[104] - The estimated fair value of investment securities decreased to $38,129 million at June 30, 2024 from $38,000 million at December 31, 2023, primarily due to share sales of GE HealthCare equity interest and higher market yields[106] - Total estimated fair value of debt securities in an unrealized loss position were $21,476 million at June 30, 2024, with $16,283 million having gross unrealized losses of $(2,813) million and being in a loss position for 12 months or more[107] - Gross unrealized losses of $(2,946) million at June 30, 2024 included $(2,122) million related to U.S. corporate securities, $(138) million related to commercial mortgage-backed securities, and $(71) million related to Asset-backed securities[107] - The majority of equity securities are classified within Level 1 and debt securities within Level 2, with $7,088 million of investments classified within Level 3 at June 30, 2024[110] - The company holds $1,141 million of equity securities without readily determinable fair value at June 30, 2024, primarily limited partnership investments in private equity, infrastructure, and real estate funds[111] - Investments in unconsolidated VIEs increased to $7,260 million at June 30, 2024 from $6,577 million at December 31, 2023[165] - Total investment commitments were $3,930 million at June 30, 2024, including $3,671 million for unconsolidated VIEs[166] Insurance and Long-Term Care - Insurance cash and cash equivalents rose to $1,442 million at June 30, 2024, compared to $784 million at December 31, 2023[123] - Future policy benefit reserves decreased to $35,376 million at June 30, 2024, down from $37,689 million at December 31, 2023[127] - Present value of expected net premiums for long-term care decreased to $3,803 million at June 30, 2024, from $4,134 million at June 30, 2023[130] - Gross premiums for long-term care were $242 million for the six months ended June 30, 2024, compared to $246 million for the same period in 2023[130] - Benefit payments for long-term care were $29,105 million at June 30, 2024, compared to $30,022 million at June 30, 2023[131] - Benefit payments for structured settlement annuities were $8,700 million at June 30, 2024, compared to $9,224 million at June 30, 2023[131] - Policyholders account balances totaled $1,654 million as of June 30, 2024, a decrease from $1,884 million in 2023, primarily due to surrenders, withdrawals, and benefit payments of $215 million, partially offset by net additions from separate accounts and interest credited of $142 million[133] - The company provided a total of $15,035 million in capital contributions to its run-off insurance subsidiaries since 2018, including a final contribution of $1,820 million in Q1 2024[134] - The company signed an agreement in June 2024 to exit a block of its life and health insurance business via an assumption reinsurance transaction, pending regulatory approvals

GE AEROSPACE ANNOUNCES SECOND QUARTER 2024 RESULTS Delivers strong second quarter with significant profit growth, raises full-year profit and cash guidance Second quarter 2024: • Total orders of $11.2B, +18% • Total revenue (GAAP) of $9.1B, +4%; adjusted revenue* $8.2B, +4% • Profit (GAAP) of $1.4B, (4)%; operating profit* $1.9B, +37% • Profit margin (GAAP) of 15.9%, (130) bps; operating profit margin* 23.1%, +560 bps • Continuing EPS (GAAP) of $1.20, +$0.11; adjusted EPS* $1.20, +$0.46 • Cash from Operatin ...

FARNBOROUGH, England, July 22, 2024 /PRNewswire/ -- GE Aerospace (NYSE: GE) announced today that International Airlines Group (IAG) has committed to purchasing GEnx engines to power six new 787 Dreamliners for British Airways – the first introduction of this engine into their fleet."British Airways was the launch customer for the highly successful GE90 engine. Bringing the GEnx into their 787 fleet represents another important milestone in our relationship," said Russell Stokes, President and CEO, Commercia ...